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.