International Forest Carbon Initiative
Updated 10 March 2009
FACT SHEET
The case for action
Global deforestation of about 13 million hectares per year results in approximately 20 per cent of global greenhouse gas emissions.
Momentum has been building for increased international action on reducing emissions from deforestation and forest degradation in developing countries (REDD). At the United Nations Framework Convention on Climate Change (UNFCCC) negotiations in Bali in December 2007, countries agreed to work toward including REDD in a post-2012 global climate change agreement.
REDD is one of the most cost-effective opportunities for reducing emissions in the short-term. While financing from developed countries will play a role, ultimately carbon markets are the only mechanism capable of mobilising investment on the scale needed to support and provide incentives for REDD.
The international community agreed in Bali that action must be taken now on REDD and to establish the necessary systems and financial mechanisms to ensure long term emission reductions. The International Forest Carbon Initiative is Australia’s contribution to this global effort.
International Forest Carbon Initiative
Australia’s $200 million International Forest Carbon Initiative is a key part of Australia’s international leadership on REDD. The Initiative supports international efforts on REDD through the UNFCCC. It is jointly administered by the Australian Department of Climate Change and AusAID.
The Initiative aims to demonstrate that REDD can be part of an equitable and effective post-2012 global climate change agreement. A central element of the Initiative is taking practical action on REDD through collaborative Forest Carbon Partnerships with Indonesia and Papua New Guinea. These partnerships demonstrate how the technical and policy hurdles to REDD might be addressed and provide lessons learned for input to REDD negotiations under the UNFCCC.
Through the International Forest Carbon Initiative, Australia is:
Increasing international forest carbon monitoring and accounting capacity.
By demonstrating that forests can be monitored effectively through advanced remote sensing, Australia will show that there can be certainty in measuring emission reductions from REDD activities. Activities include:
- directly assisting developing countries, in particular Indonesia and Papua New Guinea, to develop their own national forest carbon accounting systems; and
- partnering with a consortium led by the Clinton Climate Initiative to use Australia’s National Carbon Accounting System as a platform for a global forest carbon monitoring system.
Undertaking practical demonstration activities to show how REDD can be included in a post 2012 global climate change agreement.
This includes:
- trialling a range of approaches, particularly in Indonesia and Papua New Guinea, to demonstrate how investment in REDD can achieve emission reductions while providing forest-dependent communities with livelihoods and promoting sustainable resource management; and
- assisting with the development of necessary underpinnings for sustainable forest management, governance, law enforcement and regulatory frameworks in these countries.
Supporting international efforts to develop market-based approaches to REDD.
Australia is playing a key role in international climate change forums and in working with other countries to promote the development of market-based approaches to REDD, including by:
- taking a lead role in the negotiations under the UNFCCC and the Kyoto Protocol on how incentives for REDD can be built into a post-2012 global climate change agreement; and
- supporting the World Bank in the further development and implementation of its Forest Carbon Partnership Facility and Forest Investment Program.
Australia's submissions to the UNFCCC.
Activities to Date
Indonesia-Australia Forest Carbon Partnership
The Prime Minister of Australia and the President of Indonesia announced the Indonesia - Australia Forest Carbon Partnership on 13 June 2008. The Partnership builds on and formalises existing long-term practical cooperation between Indonesia and Australia on REDD. It incorporates $30 million for the Kalimantan Forests and Climate Partnership and a $10 million bilateral package of support for Indonesia on forests and climate. The Partnership is operating in three key areas: strategic policy dialogue on climate change; increasing Indonesia’s carbon accounting capacity; and identifying and implementing incentive-based REDD demonstration activities.
Roadmap for Access to International Carbon Markets
In June 2008, the Prime Minister of Australia and the President of Indonesia agreed to develop the Roadmap for Access to International Carbon Markets (the Roadmap). Indonesia and Australia agreed the Roadmap at the Australia-Indonesia Ministerial Forum in November 2008. The Roadmap is a multi-phased strategy that is assisting Indonesia develop the necessary technical, system and financial pre-requisites for participation in future international carbon markets for REDD.
- Roadmap (51.30 KB)
Kalimantan Forests and Climate Partnership
Australia has committed $30 million to establish the Kalimantan Forests and Climate Partnership. This Partnership is the first, large-scale REDD demonstration activity of its kind in Indonesia. It aims to demonstrate a credible, equitable and effective approach to REDD, including from the degradation of peatlands, that can inform a post-2012 climate change agreement. The Partnership is trialling an innovative, market-oriented approach to financing and implementing measures for REDD. The initial focus is on an area of more than 100,000 hectares of degraded and forested peatland in Central Kalimantan, Indonesia. Early lessons learned from the KFCP are included in the joint Indonesia – Australia submission on REDD to the UNFCCC negotiations in Poznan in December 2008.
- Kalimantan Forests and Climate Partnership
- Kalimantan Forests and Climate Partnership fact sheet (76.3 KB)
Second REDD demonstration activity
In November 2008, Australia and Indonesia agreed to develop a second REDD demonstration activity under the Indonesia-Australia Forest Carbon Partnership. The second demonstration activity will differ from the Kalimantan Forests and Climate Partnership in its location and forest type to test different aspects of REDD.
Bilateral package of support to Indonesia on forests and climate
Australia is providing $10 million to support Indonesia's forest and climate policy development. This is being used to help Indonesia develop its national Forest Resource Information System and National Carbon Accounting System for Indonesia, to support the development of a national policy framework and strategies for REDD, and to better monitor, manage and prevent large scale forest fires in Indonesia.
Papua New Guinea-Australia Forest Carbon Partnership
The Prime Ministers of Australia and Papua New Guinea established the Papua New Guinea- Australia Forest Carbon Partnership on 6 March 2008 to cooperate on REDD, and assist Papua New Guinea to participate in future international carbon markets. Australia has committed up to $3 million in initial funding which includes technical, scientific and analytical support for whole of government policy development and the design of Papua New Guinea's carbon monitoring and accounting systems.
Partnership with the Clinton Climate Initiative on carbon monitoring
Australia’s strategic partnership with the Clinton Climate Initiative is seeing Australia’s National Carbon Accounting System adopted as a platform for rolling out a global forest carbon monitoring system. This provides high-quality, low-cost forest carbon data to developing countries for incorporation into their national forest monitoring systems, providing a sound basis for verification of reductions in deforestation and forest degradation.
World Bank's Forest Carbon Partnership Facility
Australia has provided $11.7 million to the World Bank’s Forest Carbon Partnership Facility, which assists developing countries in their efforts to reduce emissions from deforestation and forest degradation. This Facility aims to build confidence in REDD investments by establishing early links between key rainforest countries and potential financiers, so that emissions reductions achieved by large-scale demonstration activities may be certified and the associated credits sold. Australia’s investment in this Facility complements its bilateral action in Indonesia and Papua New Guinea, and its global action on forest carbon measurement.
World Bank's Forest Investment Program
Australia is contributing $10 million to the World Bank’s Forest Investment Program, which will complement the Forest Carbon Partnership Facility by scaling-up activities aimed at reducing emissions from deforestation and forest degradation in developing countries. This Program is part of the broader Climate Investment Funds managed by the World Bank.
Asia Pacific Forestry Skills and Capacity Building Program
This $15.8 million Program assists countries in the Asia-Pacific region to increase their capacity to manage forests sustainably to reduce deforestation and forest degradation. Funding of $2.3 million under the first phase of the Program is supporting projects in Indonesia and Papua New Guinea, and other regional countries such as Vietnam and Fiji, in areas such as reduced impact logging, forest certification, restoration of degraded forests and research.
Research partnership on REDD
A research partnership of up to $3 million with the Centre for International Forestry Research (CIFOR) based in Indonesia will help meet the need for further global research on policy and technical issues associated with REDD, and will collect and disseminate lessons learned to inform the design and implementation of REDD activities.
Development of concept models for demonstration activities
Up to $1.5 million is being contributed to support international non-government organisations to develop concept models for REDD demonstration activities. International non-government organisations have practical on the ground experience, particularly in providing alternative livelihoods to local communities, which can help build global expertise in implementing demonstration activities.
