Who gains from saving nature
Ledger 1 : 33 — For each dollar financing nature-based solutions in 2023, about $33 financed activities harmful to nature. (UNEP)
Cases / Tanker / shipping · Indonesia · 2010–2022

Norway–Indonesia REDD+ partnership: the 2010 Letter of Intent, payments made and Indonesia's 2021 termination

Nature's voice · report
Up to; conditional on results 1 billion US dollars were pledged in my name. The measurements of what reached me differ.
Did nature suffer? Not measured. Accounts differ ↓
What the record lacks: 3 none on record · 1 insufficient · 2 not measured · 4 disputed See the gaps
Accounts of the harm differ
Whether Indonesia earned the 2016/2017 payment
  • Government and regulators Government of Indonesia: Indonesia had met all requirements for payment for a 2016/2017 reduction of 11.2 million tonnes CO2e that an international organisation verified; the payment "hasn't been made by Norway". Mongabay
  • Government and regulators Government of Norway: Talks on a legal agreement for the transfer were ongoing and constructive; Norway praised Indonesia as a world leader in combating tropical deforestation. Mongabay
  • Press and investigations Development Today, via REDD-Monitor: Indonesia's 2016/2017 figures excluded peatland emissions; if they had been counted there might be no basis for payment at all. REDD-Monitor
  • Press and investigations Mongabay (2020): Indonesia's own initial estimate was 4.8 million tonnes CO2e without peat fire emissions; Norway factored them in during verification to reach 11.23 million. Mongabay
Why deforestation fell
  • Government and regulators Ministry of Environment and Forestry (Ruandha Agung Sugardiman): Credited ministry policies with significant results in cutting deforestation. REDD-Monitor
  • Communities and civil society Rainforest Foundation Norway (Øyvind Eggen): Credited transparency in forest-industry licensing and monitoring; said forest-conversion licences routinely destroy primary rainforest. Mongabay
  • Researchers Arief Wijaya, World Resources Institute: Falling and fluctuating palm oil prices and COVID-19 also slowed industry and likely affected deforestation. REDD-Monitor
  • Researchers Groom, Palmer and Sileci (PNAS, 2022): The moratorium gave a modest dryland effect and no peatland effect, a 3 to 4% annual contribution to Indonesia's NDC commitment. Proceedings of the National Academy of Sciences

In a Letter of Intent signed on 26 May 2010, Norway agreed to pay Indonesia up to US$1 billion based on its performance in cutting greenhouse gas emissions from deforestation and forest degradation. Norway agreed a first results-based payment of NOK 530 million (about US$56 million) for 2016–2017 results, Indonesia reported that nothing had been transferred when it ended the Letter of Intent effective 10 September 2021, and a US$56 million contribution agreement followed in October 2022.

up to US$1 billionNorway's commitment to Indonesia under the 2010 Letter of Intent
As stated by Mongabay and REDD-Monitor; the payment is conditional on results. Norad's 2017 table lists the pledge as NOK 6,000,000,000 at US$1 = NOK 6.00 and NOK 1,294,690,398 disbursed to the end of 2016.

Status As of October 2022: Indonesia ended the 2010 Letter of Intent in September 2021; a US$56 million results-based contribution agreement with Norway was reported on 21 October 2022; no source reviewed reports payments after that date.

What?
A partnership under which Norway agreed to pay Indonesia up to US$1 billion for verified reductions in emissions from deforestation and forest degradation. Ministry of Environment and Forestry, Republic of Indonesia
Where?
Indonesia, nationwide; Norway as donor; payments routed through the Indonesian Environment Fund Management Agency. Mongabay
When?
Signed 26 May 2010; payment agreed 2019 and announced May 2020; terminated 10 September 2021; new contribution agreement reported October 2022. Mongabay
Who?
Gained
  • Indonesia — Received Norwegian disbursements to the end of 2016 (NOK 1,294,690,398 per Norad); no results-based payment transferred by September 2021 according to its deputy minister Norad Evaluation Department
Lost
  • Indonesia — Its government said the agreed payment had not been made and gave this as a reason for ending the Letter of Intent Mongabay
Harmed
Why?
Norway's International Climate and Forest Initiative pays forest countries for verified reductions; Indonesia sought results-based payment for avoided deforestation. Ministry of Environment and Forestry, Republic of Indonesia
How?
Indonesia reported emission reductions against a baseline under an agreed MRV protocol; Norway pays after verification, with set-asides for uncertainty and ambition; payments go through BPDLH. Ministry of Environment and Forestry, Republic of Indonesia
6 of 6 questions answered from the record

What happened

The record, in order.

Norway and Indonesia signed a Letter of Intent (LoI) on 26 May 2010 on cooperation to reduce greenhouse gas emissions from deforestation and forest degradation. Indonesia's Ministry of Environment and Forestry wrote in 2019 that "In general, the Government of Kingdom of Norway will provide payment to Government of Indonesia, based on the performance of reducing green house gas emissions from deforestation and forest degradation." Mongabay and REDD-Monitor reported that Norway agreed to pay up to US$1 billion. The ministry's 2019 report places results-based payment in the third phase of the LoI and records an MRV protocol agreed at a final meeting on 7 February 2019, with set-asides of 20% of reported reductions for uncertainty, 0% for leakage and 15% to reflect Indonesia's ambition. Norad's 2017 synthesis table lists the pledge as NOK 6,000,000,000, calculated at US$1 = NOK 6.00, and NOK 1,294,690,398 disbursed to the end of 2016.

Norway agreed a first results-based payment of NOK 530 million, reported as about US$56 million, for a reduction of 11.23 million tonnes of CO2e in 2016–2017. Mongabay (2021) and Eco-Business dated the agreement to 2019; Mongabay reported in May 2020 that Norway's ambassador announced the payment, that Indonesia's own initial estimate had been 4.8 million tonnes and that peat fire emissions were factored in during verification to reach 11.23 million. REDD-Monitor, citing Development Today, wrote that Indonesia's 2016/2017 figures excluded peatland emissions and that if they had been counted "there might be no basis for payment at all." The money was to go through the Indonesian Environment Fund (BPDLH), launched in October 2019, and Mongabay reported that disbursement would wait until the fund was operational.

On 10 September 2021 Indonesia's Ministry of Foreign Affairs ended the LoI by Note Verbale under Article XIII, citing "the lack of concrete progress" on Norway's obligation to pay for the 2016/2017 reduction and pointing to the lowest deforestation rate in 20 years. Indonesia's Deputy Environment and Forestry Minister said Indonesia had met all requirements and "What I know is that [the payment] hasn't been made by Norway." Norway's NICFI said discussions on a legal agreement to transfer the payment to the Indonesian Environment Fund were ongoing and, "in Norway's view constructive and progressing well", called Indonesia "a world leader in combatting tropical deforestation" and said it stood ready to continue support. The Jakarta Post reported on 21 October 2022 that Norway and Indonesia had signed a contribution agreement, following a memorandum of understanding agreed in September 2022, under which Norway would deliver a first results-based contribution of US$56 million to support Indonesia's Forest and Land Use Net Sink 2030 operational plan through BPDLH.

Independent assessments cover the programme's design and one of its policy elements. Norad's Evaluation Department synthesis report 8/2017 (written by AECOM) found that where REDD+ had been integrated into national policy the role of Norwegian funding "has mainly been supportive of existing political commitments to reducing deforestation and forest degradation rates (Brazil or Indonesia) rather than acting as a 'game changer'." A peer-reviewed study in PNAS (Groom, Palmer and Sileci, 2022) evaluated Indonesia's moratorium on forest concessions over 2011–2018 and found that inside the moratorium areas dryland forest kept at most about 0.65% more forest cover than comparable areas, that carbon-rich peatland forest was unaffected, and that the avoided dryland deforestation implied an effective carbon price below Norway's US$5 per tonne. Mongabay's 2020 report added that deforestation remained above Indonesia's climate commitment ceilings according to the NGO Madani, and that a WWF Germany study found Indonesia lost over 130,000 hectares of forest in the first three months of 2020.

  1. 2010Letter of Intent signed (26 May); Norway agrees to pay up to US$1 billion on performance
  2. 2011Start of the 2011–2018 period analysed in the PNAS study of Indonesia's moratorium on forest concessions
  3. 2015President Widodo disbands BP REDD+ and moves its duties to the Ministry of Environment and Forestry; severe fires slow progress (Mongabay)
  4. 2016Norad table: NOK 1,294,690,398 disbursed to the end of 2016 against a pledge of NOK 6,000,000,000
  5. 2019MRV protocol agreed (7 February); Indonesia's ministry issues its emission reduction report (May); Norway agrees a first results-based payment of NOK 530 million for 2016/2017 results
  6. 202027 May: Norway's ambassador announces the payment at a virtual press conference; funds to go through BPDLH
  7. 202110 September: Indonesia ends the LoI by Note Verbale, saying no payment has been made; Norway says talks are constructive
  8. 2022PNAS study of the moratorium published (24 January); MoU agreed in September and contribution agreement for US$56 million reported 21 October

What was said

Claims, in the words of those who made them.

“In general, the Government of Kingdom of Norway will provide payment to Government of Indonesia, based on the performance of reducing green house gas emissions from deforestation and forest degradation.”

“the lack of concrete progress”

Indonesia's Ministry of Foreign Affairs, on Norway's payment obligation · 10 September 2021 · REDD-Monitor

“What I know is that [the payment] hasn't been made by Norway.”

Alue Dohong, Deputy Minister of Environment and Forestry, as quoted by Mongabay · September 2021 · Mongabay

“in Norway's view constructive and progressing well”

Norway's International Climate and Forest Initiative (NICFI), on the transfer discussions · 10 September 2021 · Mongabay

“a world leader in combatting tropical deforestation”

Norway's International Climate and Forest Initiative (NICFI), on Indonesia · 10 September 2021 · REDD-Monitor

“have started to bear fruit”

Vegard Kaale, Norwegian ambassador, on Indonesia's policy reforms and law enforcement, as reported by Mongabay · 27 May 2020 · Mongabay

“there might be no basis for payment at all”

Development Today, as quoted by REDD-Monitor, on the consequence of counting peatland emissions · 2021 · REDD-Monitor

“carbon-rich peatland forest was unaffected by the moratorium”

Where accounts differ

Each party's account, side by side, with its source. The record does not settle these points; it shows them.

Whether Indonesia earned the 2016/2017 payment
Government and regulators
Government of Indonesia

Indonesia had met all requirements for payment for a 2016/2017 reduction of 11.2 million tonnes CO2e that an international organisation verified; the payment "hasn't been made by Norway".

Mongabay
Government and regulators
Government of Norway

Talks on a legal agreement for the transfer were ongoing and constructive; Norway praised Indonesia as a world leader in combating tropical deforestation.

Mongabay
Press and investigations
Development Today, via REDD-Monitor

Indonesia's 2016/2017 figures excluded peatland emissions; if they had been counted there might be no basis for payment at all.

REDD-Monitor
Press and investigations
Mongabay (2020)

Indonesia's own initial estimate was 4.8 million tonnes CO2e without peat fire emissions; Norway factored them in during verification to reach 11.23 million.

Mongabay
Why deforestation fell
Government and regulators
Ministry of Environment and Forestry (Ruandha Agung Sugardiman)

Credited ministry policies with significant results in cutting deforestation.

REDD-Monitor
Communities and civil society
Rainforest Foundation Norway (Øyvind Eggen)

Credited transparency in forest-industry licensing and monitoring; said forest-conversion licences routinely destroy primary rainforest.

Mongabay
Researchers
Arief Wijaya, World Resources Institute

Falling and fluctuating palm oil prices and COVID-19 also slowed industry and likely affected deforestation.

REDD-Monitor
Researchers
Groom, Palmer and Sileci (PNAS, 2022)

The moratorium gave a modest dryland effect and no peatland effect, a 3 to 4% annual contribution to Indonesia's NDC commitment.

Proceedings of the National Academy of Sciences

How it looked

What was shown, beside what was recorded.

Shown

  • The payment presented as the first results-based payment under the REDD+ partnership, for 11.23 million tonnes CO2e of avoided emissions in 2017.
    Norway, as reported by Mongabay · Mongabay
  • Indonesia presented the termination as unrelated to its climate commitments, pointing to the lowest deforestation rate in 20 years and fewer forest fires.
    Indonesia's Ministry of Foreign Affairs · REDD-Monitor
  • The October 2022 contribution described as supporting the FOLU Net Sink 2030 operational plan.
    Minister of Environment and Forestry Siti Nurbaya, as quoted by the Jakarta Post · The Jakarta Post

Recorded

  • No results-based payment under the LoI had been transferred when Indonesia ended it on 10 September 2021, according to Indonesia's deputy environment minister and the sources reviewed; Norway said transfer talks were continuing.
  • Norad's 2017 table records NOK 6,000,000,000 pledged and NOK 1,294,690,398 disbursed to the end of 2016 for Indonesia.
  • The PNAS study found dryland forest inside the moratorium areas retained at most about 0.65% more cover and no effect on peatland forest, 2011–2018.
  • A US$56 million results-based contribution agreement with BPDLH was reported on 21 October 2022.

In nature's name

What was promised in nature's name, the money that moved, and what was measured.

Promised

  • “In general, the Government of Kingdom of Norway will provide payment to Government of Indonesia, based on the performance of reducing green house gas emissions from deforestation and forest degradation.” — Indonesia's Ministry of Environment and Forestry, describing the Letter of Intent (May 2019) Ministry of Environment and Forestry, Republic of Indonesia
  • “stand[s] ready to continue supporting” — Norway's International Climate and Forest Initiative, on Indonesia's efforts (10 September 2021) Mongabay

Money moved in nature's name

WhatKindAmountPeriod
Norway's commitment under the 2010 Letter of Intent
Government of Norway
Mongabay
Pledged$1bn2010–2021
Norway's pledge as tabled by Norad
Government of Norway
Norad Evaluation Department
Pledged6bn NOK2010–2016
Norway's disbursements to Indonesia to the end of 2016
Government of Norway
Norad Evaluation Department
Paid out1.3bn NOKto end of 2016
First results-based payment agreed for 2016/2017 results
Government of Norway
Mongabay
Pledged530m NOK2019
First results-based contribution under the October 2022 agreement
Government of Norway
The Jakarta Post
Pledged$56m2022

What was measured

Measurements differ

A peer-reviewed study in PNAS (2022) found a benefit of the moratorium on forest concessions in dryland forest (at most about 0.65% more forest cover, 2011–2018) and none in peatland forest; the authors are university researchers and declare no competing interests. Whether Indonesia's 2016/2017 emission reduction of 11.23 million tCO2e, the basis of the payment, was correctly measured is disputed between sources. Indonesia's own emission reduction report is the programme's own figure, not an independent measurement.

Dryland forest cover gain from the moratorium
at most about 0.65%
2011–2018, against comparable untreated areas Proceedings of the National Academy of Sciences
Effective carbon price implied
below US$5 per tCO2-eq
PNAS compares this with Norway's US$5 per tonne price Proceedings of the National Academy of Sciences
Contribution to Indonesia's NDC commitment
3 to 4% annually

Operation Ended · Indonesia ended the Letter of Intent effective 10 September 2021; a new contribution agreement was reported in October 2022. Mongabay

Findings on record

  • Peer-reviewed study Groom, Palmer and Sileci, PNAS (2022-01-24) · Carbon emissions reductions from Indonesia's moratorium on forest concessions are cost-effective yet contribute little to Paris pledges: “carbon-rich peatland forest was unaffected by the moratorium” Proceedings of the National Academy of Sciences
  • Official audit Norad Evaluation Department (AECOM), synthesis report 8/2017 (2017-10) · Norway's International Climate and Forest Initiative: Lessons learned and recommendations: “has mainly been supportive of existing political commitments to reducing deforestation and forest degradation rates (Brazil or Indonesia)” Norad Evaluation Department

Who gained

Money that reached nature, beside money that stayed elsewhere.

Reached nature or the ground

Not published
No figure published.

Gained elsewhere

Not totalled
Currency: USD · Window: 2010–2022. All figures cover the same period. * Estimate built from cited figures.

Responses on record

  • Government of Indonesia (10 September 2021): The foreign ministry cited "the lack of concrete progress" on Norway's payment obligation for 11.2 million tonnes of CO2e in 2016/2017 and said the termination did not affect its climate commitments; the deputy environment minister said Indonesia had "not received a single cent". · REDD-Monitor
  • Government of Norway (10 September 2021): NICFI said discussions on a legal agreement for the transfer were ongoing and, "in Norway's view constructive and progressing well", praised Indonesia's deforestation reductions and said Norway stood ready to continue supporting Indonesia's forest and peatland efforts. · Mongabay
  • Indonesian Environment Fund Management Agency (BPDLH) (October 2022): Its president director signed the 2022 contribution agreement with Norway's ambassador, according to the Jakarta Post. · The Jakarta Post

In court and with insurers

Every proceeding and every insurer decision on record.

Lawsuits and rulings

No court case on record. No court has ruled on this case.

Insurers

No insurer decision on record.

What nature saw

Outcomes measured on the ground, and nature's note.

Nature's report opens this page. Below: further outcomes measured on the ground.

Dryland forest cover inside the moratorium compared with comparable areas, 2011–2018
at most about 0.65% higher
PNAS (Groom, Palmer and Sileci, 2022)
Peatland forest effect of the moratorium
none found (close to zero, not statistically significant)
PNAS (2022)
Avoided dryland deforestation, 2011–2018
roughly 117,000 to 150,000 ha
PNAS (2022); 67.8 to 86.9 million tCO2-eq
Emission reduction for which Norway agreed to pay, 2016/2017
11.23 million tCO2e
Mongabay; Indonesia's own initial estimate was 4.8 million tCO2e

What we don't know

Undisclosed, unproven, untried: recorded as data.

Nature

  • Not measured Harm to nature: The record holds no measurement of harm to nature.
  • Disputed Whether Indonesia earned the 2016/2017 payment
  • Disputed Why deforestation fell

Record

  • Disputed Disputed: whether peat emissions were counted in the 2016/2017 reduction. Mongabay (2020) reported that peat fire emissions were factored in by Norway during verification to reach 11.23 million tonnes; REDD-Monitor (2021), citing Development Today, wrote that Indonesia's 2016/2017 figures excluded peatland emissions.
  • Disputed Disputed: when the payment was agreed. Mongabay (2021) and Eco-Business date the agreement to 2019; Mongabay (2020) reports the announcement at a press conference on 27 May 2020.
  • None on record None on record: the total Norway disbursed to Indonesia between 2010 and 2021 under the LoI; the sources reviewed give only the Norad figure to the end of 2016 (NOK 1,294,690,398), which does not say how much was results-based.
  • None on record None on record: Norway's own published reasons for the delay beyond the NICFI statement that talks on a legal agreement were continuing.
  • None on record None on record: the verifier of the 11.2 million tonne reduction; Indonesia's foreign ministry said an international organisation verified it, and Mongabay said Norway's government verified it.
  • Not measured Not measured: the effect of the 2022 contribution agreement on forest or emissions; the sources reviewed end at its signing.
  • Insufficient Insufficient: a measurement of the Letter of Intent's other elements (institution building, safeguards); the PNAS study covers the moratorium only.

Did the harm stop?

The sources reviewed do not report that harm stopped. Mongabay (2020) cited a WWF Germany finding of over 130,000 ha of forest lost in Indonesia in the first three months of 2020, and Madani's statement that deforestation remained above Indonesia's climate commitment ceilings.

Who paid?

Norway paid NOK 1,294,690,398 to the end of 2016 under the partnership (Norad table); the first results-based payment of NOK 530 million agreed for 2016/2017 results had not been transferred by September 2021 according to Indonesia; a US$56 million contribution agreement was reported in October 2022.

Sources

Voices on record: — Company or project✓ Government and regulators— Courts✓ Press and investigations✓ Communities and civil society✓ Researchers

Communities and civil society

Connected cases

Related matters, and cases linked to this one through the same organisations, with the role each played in both.

Carbon and conservation finance

Baseline
The projected scenario of what would have happened without a project, such as an expected rate of deforestation. Credits are issued for the difference between the baseline and what actually happened, so an inflated baseline produces more credits.
REDD+
Reducing Emissions from Deforestation and forest Degradation. A UN framework under which forest projects earn carbon credits for deforestation they say they prevented, measured against a projected baseline.

Science and environment

Biomass, root-to-shoot ratio, carbon fraction
Biomass is the dry weight of living plants per hectare. The root-to-shoot ratio adds the weight of roots. The carbon fraction is the share of that weight that is carbon, about 47% in tropical forests.
Hectare (ha)
A unit of area equal to 10,000 square metres, about 2.5 acres. 100 hectares make one square kilometre.
Peatland
Wetland where layers of partly decayed plant matter build up over centuries and store large amounts of carbon.
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