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PRESS RELEASE December 8, 2020

Indonesia and the World Bank Sign Milestone Agreement on Emission Reductions

Jakarta, December 8, 2020 — Indonesia’s Ministry of Environment and Forestry and the World Bank’s Forest Carbon Partnership Facility signed a landmark agreement on November 27 unlocking up to US$110 million for Indonesia’s efforts to lower carbon emissions from deforestation and forest degradation between now and 2025.

With this Emission Reductions Payment Agreement in place, Indonesia will receive results-based payments for reducing 22 million tons of carbon emissions in the province of East Kalimantan. Reducing emissions in this region is an important step to help the country reach national climate and environmental targets.

“This agreement is a testament to Indonesia’s continuous hard work in reducing deforestation and protecting forests, but our efforts will not stop here. This program has built positive momentum and provides an opportunity to take action collectively – across governments, civil-society organizations, communities and businesses,” says Bambang Hendroyono, the Ministry of Environment and Forestry Secretary General.While the work on the ground will take place in one province, the results will help us as a country to meet our goals to reduce deforestation and degradation, address the impacts of climate change, and set Indonesia on a path of green development.

Indonesia’s Emission Reductions Program in East Kalimantan province, which has a population of approximately 3.5 million, aims to lower rates of deforestation and forest degradation across 12.7 million hectares of land rich in tropical rainforests and biodiversity. The initiative will also support improved land governance and local livelihoods, and protect the habitat of numerous vulnerable and endangered species by improving forest licensing, increasing the number of small-scale plantations, and promoting community-based planning.

“This agreement is proof of Indonesia’s ongoing work to protect and sustainably manage these globally-significant tropical forests,” says Satu Kahkonen, World Bank Country Director for Indonesia and Timor-Leste. “Indonesia has committed to cutting up to 41 percent of its greenhouse gas emissions with international support by 2030, as well as accelerating sustainable development in its national development plan. This agreement will provide unprecedented support to achieve these ambitious goals.”

“In East Kalimantan, our people are at the heart of sustainable land and forest management,” says Dr. Ir. Isran Noor, M.Si., East Kalimantan Governor. “We will work to ensure that everyone benefits from the long-term outcomes of this program – improved livelihoods, healthier forests and communities that are more resilient to the impacts of climate change.”

The World Bank’s Forest Carbon Partnership Facility (FCPF) is a global partnership of governments, businesses, civil society, and Indigenous Peoples' organizations focused on reducing emissions from deforestation and forest degradation, forest carbon stock conservation, the sustainable management of forests, and the enhancement of forest carbon stocks in developing countries, activities commonly referred to as REDD+. Launched in 2008, the FCPF has worked with 47 developing countries across Africa, Asia, and Latin America and the Caribbean, along with 17 donors that have made contributions and commitments totaling US$1.3 billion.


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