Results based payments and verified emission reductions
In this framework, Indonesia and Norway work towards a phase of the partnership where Indonesia receives annual contributions for independently verified emission reductions. The payments will be based upon annual emissions levels relative to a reference level agreed between the parties.
National funding mechanism
In line with the Letter of Intent between the two countries, the payments from Norway (and potentially other partners joining the partnership) will be channeled through a national funding mechanism. The national funding mechanism is currently being set up, in a cooperation between the Ministry of Finance and the Ministry of Forestry and Environment.
Strengthening institutions and supporting initiatives for green growth and reduced emissions
In the period leading up to the results based payments phase, a number of initiatives have been and are being supported, both on national and subnational levels.
For example, the new peat regulation (PP57/2016) is expected to reduce the emissions from conversion of peat and peat fires. After this regulation was legally recognized through President Widodo’s signature, Norway has provided 25 million USD to support its implementation. These funds are currently channelled via the UN Office for Project Services (UNOPS). Norway will disburse an additional 25 million USD once the monitoring and enforcement plan for the new peat moratorium is ready.
Other initiatives have been taken in order to establish the national funding mechanism and to support institutions and frameworks necessary to deliver large scale emission reductions.
Norway's International Climate and Forest Initiative is also supporting projects aiming to strengthen law enforcement in Indonesia as well as initiatives to develop green growth and emission reduction strategies on the provincial level.