International Forest Carbon Initiative
FACT SHEET
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The case for action to reduce deforestation
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 to address emissions from deforestation. At the UN climate change negotiations in Bali in December 2007, it was agreed for the first time that action on deforestation in developing countries should be part of a future response to climate change.
Reducing emissions from deforestation and forest degradation 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 developing countries to reduce emissions from deforestation.
The international community agreed in Bali that action must be taken now to address deforestation and forest degradation in developing countries 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
The International Forest Carbon Initiative is a key part of Australia's international leadership on reducing emissions from deforestation. The Initiative will support international efforts to reduce deforestation through the United Nations Framework Convention on Climate Change (UNFCCC). It aims to demonstrate that reducing emissions from deforestation and forest degradation can be part of an equitable and effective international agreement on climate change. A central element is the Initiative's focus on developing practical demonstration activities in our region, particularly in Indonesia and Papua New Guinea.
Through the International Forest Carbon Initiative, Australia will:
Increase 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 avoided deforestation activities. Activities will 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.
Undertake practical demonstration activities to show how reducing emissions from deforestation can be included in a future international climate change framework.
This will include:
- trialling a range of approaches, particularly in Indonesia and Papua New Guinea, to demonstrate how investment in avoided deforestation 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.
Support international efforts to develop market-based approaches to address deforestation.
Australia will play a key role in international climate change forums and in working with other countries to promote the development of market-based approaches to reducing emissions from deforestation and forest degradation, including by:
- taking a lead role in the negotiations under the UNFCCC and the Kyoto Protocol on how incentives to reduce emissions from deforestation and forest degradation can be built into a future international climate change agreement; and
- supporting the World Bank in the further development and implementation of its Forest Carbon Partnership Facility and related initiatives.
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 reducing greenhouse gas emissions from deforestation and forest degradation. It incorporates the existing $30 million Kalimantan Forests and Climate Partnership and the $10 million bilateral package of support for Indonesia on forests and climate. The Partnership will operate in three key areas: strategic policy dialogue on climate change; increasing Indonesia's carbon accounting capacity; and identifying and implementing incentive-based demonstration activities. Indonesia and Australia have also agreed to develop a Roadmap for Access to International Carbon Markets, to assist Indonesia to participate in international carbon markets.
Kalimantan Forests and Climate Partnership
Australia has committed $30 million to establish the Kalimantan Forests and Climate Partnership. This Partnership will be developed as the first, large-scale demonstration activity of its kind in the world. It will aim to trial an innovative, market-oriented approach to financing and implementing measures to reduce emissions from deforestation and forest degradation in Central Kalimantan, Indonesia.
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 will be used to help develop a national Forest Resource Information System, including a national carbon accounting system, and to support the development of a national policy framework and strategies for reducing emissions from deforestation and forest degradation.
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 reducing emissions from deforestation and forest degradation, and assist Papua New Guinea to participate in future international carbon markets. Australia is contributing up to $3 million in initial funding which will include technical, scientific and analytical support for the design of Papua New Guinea's carbon monitoring and accounting systems.
Research partnership on reducing emissions from deforestation
A research partnership of up to $3 million with the Centre for International Forestry Research (CIFOR) in Indonesia to help meet the need for further research on policy and technical issues associated with reducing emissions from deforestation.
Development of concept models for demonstration activities
Up to $1.5 million to support international non-government organisations to develop concept models for demonstration activities to reduce emissions from deforestation. International non-government organisations have practical on the ground experience - particularly in providing alternative livelihoods to local communities - that can help build global expertise in implementing demonstration activities.
Partnership with the Clinton Climate Initiative on carbon monitoring
Australia's strategic partnership with the Clinton Climate Initiative, announced in February 2008, will see Australia's National Carbon Accounting System adopted as a platform for the rolling out of a global forest carbon monitoring system. This will provide 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 avoided deforestation 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.
Asia Pacific Forestry Skills and Capacity Building Program
This $15.7 million Program will assist countries in the Asia-Pacific region increase their capacity to manage forests sustainably to reduce deforestation and forest degradation. Activities to be supported include skills-based training, institutional strengthening, technology transfer, information exchange and research.
For more information: ifci@climatechange.gov.au
