Kalimantan Forests and Climate Partnership (KFCP) Design ...

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.
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 longterm
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.
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.
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.
KALIMANTAN FORESTS AND CLIMATE PARTNERSHIP (KFCP) DESIGN DOCUMENT 3-1