Jakarta Globe, Tito Summa Siahaan, September 1, 2013
An aerial shot showing deforestated land in Tesso Nilo National Park, Riau. (EPA Photo/Bagus Idahono) |
Indonesia
and Japan have signed a deal to smooth the way for Japanese companies who wish
to help Indonesia reduce greenhouse emissions through improved technology and
conservation schemes.
With
Friday’s signing of a bilateral agreement known as a joint crediting mechanism
(JCM), the two countries have cut out intermediaries in greenhouse-friendly
technology transfer, investment, financing and capacity building.
Currently,
under the Kyoto greenhouse protocol’s Clean Development Mechanism, the United
Nations must sign off on each Japanese company’s participation, after a lengthy
screening process.
The new
agreement will help Indonesia cash in more rapidly on Japanese companies’
attempts to offset their own industrial carbon emissions by gaining credit for
helping avoid emissions elsewhere in the world.
According
to Rizal Affandi Sukma, deputy minister for economic and international
financing cooperation, the Japanese government needs the help of developing
countries like Indonesia to meet its commitment to reduce its carbon emissions
by 25 percent by 2020. “Japan is already very efficient so they have little
room to improve at home,” Rizal said.
As part of
the JCM agreement, the Japanese government has conducted feasibility studies in
generating carbon emissions reductions in Indonesia through renewable energy,
forestry, energy conservation, agriculture, transportation, carbon storage and
waste treatment.
Indonesia
has also set its own ambitious 2020 targets, of 26 percent emissions reduction
under its own steam, and 41 percent reductions with international assistance
through schemes such as that signed on Friday.
Foreign
assistance in reducing greenhouse emissions has not gone smoothly so far. The
Rimba Raya Biodiversity Reserve, a private sector effort backed by Russian
energy giant Gazprom and German Insurer Allianz, saw the Ministry of Forestry
slash its project area in half, handing the land over to a palm oil company.
In July,
Australia shelved its $43 million Kalimantan Forest Carbon Partnership project
without explanation.
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