Press release | Date: 01/12/2023 | Office of the Prime Minister
Indonesia is a global leader in reducing deforestation – now with the lowest reported levels in 20 years. To recognize Indonesia’s impressive results, Norway announces a contribution of 100 million US dollars to support the country’s continuous efforts.
Today, December 1, at the 2023 United Nations Climate Change Conference (COP28) in Dubai, Prime Minister of Norway Mr. Jonas Gahr Støre declared that “Indonesia plays an indispensable role in our joint fight against climate change. Indonesia leads in efforts to reduce CO2 emissions from deforestation. This constitutes one of the world’s largest single climate mitigation contributions since we launched the Paris Agreement in 2015. Norway is very proud to work alongside Indonesia as a partner, and we hope our contribution of $100 million inspires others to follow.”
Indonesian Environment and Forestry Minister Siti Nurbaya, states that:
“The new climate partnership between Indonesia and Norway, initiated through an MoU signed in September 2022 aimed at supporting Indonesia's FOLU Net Sink 2030, has been highly effective to date. The first contribution made in October last year, and subsequently the new contributions announced by Norway's PM today, signify recognition of Indonesia's success in reducing emissions from deforestation and forest degradation through leading by example”, Nurbaya says, and continues:
“This new Indonesia-Norway climate partnership serves as a valuable lesson learned from the interactions between countries working together on the climate agenda amidst notable ongoing challenges.”
Indonesia is home to the world’s third largest rainforest. The country has, in recent years, reduced deforestation to record-low levels – thus significantly reducing greenhouse gas emissions from deforestation, but also from forest fires and peatlands.
Indonesia has maintained a downward trend in deforestation over the last six years. To successfully reduce deforestation, the Indonesian government has invested in a wide range of efforts including more sustainable land use, improved law enforcement and firefighting capacities, and expansion of social forestry programs. The Norwegian contribution to Indonesia is the second result-based contribution from Norway in support of Indonesia’s achievements at reducing deforestation.
“Norway has demonstrated a concrete action in terms of delivering climate finance commitments, particularly in support of our emissions reduction efforts in the FOLU sector. However, the significant challenge remains of securing USD 100 billion annually from developed nations, an essential step in supporting our climate actions in the energy transition sector”, says Indonesian Environment and Forestry Minister Siti Nurbaya.
Last September, Indonesia and Norway joined forces to strengthen the fight against climate change, announcing a groundbreaking partnership on climate and forest. Shortly after the signing of the new partnership, Norway supported Indonesia with $56 million for reducing emissions from deforestation and forest degradation.
The Norwegian result-based contribution will support Indonesia’s Forest and Land Use (FOLU) Net Sink 2030 Operational Plan. It is the Government of Indonesia that prioritizes and manages the contribution from Norway through the Indonesian Environment Fund (IEF).
Indonesia Environment Fund was officially launched in October 2019 as an environmental funding mechanism to support Indonesia’s efforts to achieve Indonesia’s commitment to reduce Indonesia’s GHG emissions and to meet the Sustainable Development Goals (SDGs). The fund already collaborates with key partners such as the World Bank and UNDP, in addition to Norway.
Priorities under the FOLU Net Sink 2030 Operational Plan includes strengthening forest protection and increasing community participation; increasing the carbon sequestration capacity of natural forests, through sustainable forest management, forest and land rehabilitation, and social forestry; conservation of biodiversity; reducing emissions from fires and peat decomposition; and strengthening law enforcement.
The climate and forest partnership between Indonesia and Norway encompasses a results-based model. This means Norway contributes with results-based contributions for Indonesia’s annually reported emission reductions from deforestation.
Last year’s result-based contribution of $56 million from Norway recognized the achieved emission reductions from reduced deforestation in Indonesia in the so-called “forest year” that runs from mid-2016 to mid-2017.
The contribution of the $100 million launched at the Climate Summit in Dubai today, December 1, is a recognition of emissions reductions from deforestation in Indonesia in the forest years of 2017-2018, and 2018-2019.
 Not exceeding 1,2 billion NOK.