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Institutional Mechanisms for REDD+ - Case Studies Working Paper

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emission reductions. However, emerging experiences from <strong>REDD+</strong> pilot projects in Indonesia suggest that<br />

the profit motivation of private project developers may not necessarily be aligned with the interests of local<br />

communities. The unwillingness of PT-RMU to invest financial resources into a full-fledged FPIC process<br />

until after the ERC is secured provides an example of this dilemma.<br />

This challenge highlights an urgent need <strong>for</strong> policies, measures, and standards at the national level that<br />

regulate private project developers, define a spectrum of acceptable benefit sharing practices, and clarify and<br />

legally recognize communities‘ rights in the context of <strong>REDD+</strong>. Social and environmental safeguards should<br />

be developed, monitored, and en<strong>for</strong>ced. In addition, the Government of Indonesia should consider national<br />

scale interventions that strengthen the capacity of local communities to participate in <strong>REDD+</strong> projects,<br />

rather than relying on NGOs or private project developers to deliver these services at scale.<br />

112 PRRGP INSTITUTIONAL MECHANISMS FOR REDD: CASE STUDIES – WORKING PAPER

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