COP27 Egypt: Indonesia Receives Funding from Norway and the World Bank for Emission Reduction – How Much?

Indonesia is taking a leading role in implementing its climate change commitments, exemplified by the support of three developed nations for its Forestry and Other Land Uses (FoLU) Net Sink 2030 target, aimed at achieving emission balance in the forestry and other land use sectors.

Three representatives from developed countries attended the World Climate Leaders’ Insight on Indonesia’s FoLU Net Sink 2030 session at the Indonesian Pavilion, COP 27 UNFCCC, Sharm El-Sheikh, Egypt, on Wednesday, November 9, 2022 (local time), alongside Indonesian Minister of Environment and Forestry, Siti Nurbaya. Attendees included the UK Minister of State for Asia, Energy, Climate and Environment, Lord Goldsmith; Norway's Minister of Foreign Affairs, Anniken Huitfeldt (Tvinnereim); and the US Deputy Assistant Secretary for Climate Policy, Rick Duke.

During the session, Minister Siti Nurbaya highlighted the FoLU sector as a key focus for achieving Indonesia's Nationally Determined Contribution (NDC) in addressing climate change.

"Indonesia now has one of the lowest deforestation rates globally. This is a commitment based on evidence, not mere promises, actively contributing to the Paris Agreement and the Glasgow Pact," said Minister Siti Nurbaya in a press release.

She emphasized the importance of millennial support in ensuring the success of climate change policies, from central government level down to the local level.

"We appreciate and encourage the role of young people as stakeholders in supporting the success of climate change policies in Indonesia," said Siti Nurbaya.

Minister Goldsmith praised Indonesia's international leadership on climate and environmental issues, commending Indonesia's FoLU Net Sink 2030 target and operational plan.

"Indonesia is a natural capital superpower, and its ambition to protect and restore land is crucial for global climate change," stated Minister Goldsmith.

Similar sentiments were expressed by Norway's Minister of Foreign Affairs, Tvinnereim, who noted that Indonesia is ahead of the curve in tackling climate change. A significant contribution to Indonesia's NDC achievement is the historically low deforestation rate of 114,000 hectares per year between 2019-2020 and 2020-2021.

"Indonesia is an example and leader in forestry and land management, and is very open to building Indonesia-Norway collaboration in climate change mitigation efforts," said Minister Tvinnereim.

The Norwegian government recently established a new partnership with the Indonesian government in climate change and forestry, supporting the implementation of the FoLU Net Sink 2030 target.

The strategy involves various efforts such as social forestry, a moratorium on primary forest permits, peatland management, forest and land fire control, law enforcement, and other initiatives.

For its emission reduction efforts, Indonesia has received the first installment of results-based payments from its climate agreements with Norway (US$56 million) and the World Bank (US$20.9 million).