Indonesia has signed the Emission Reduction Payment Agreement (ERPA) with the World Bank on November 25, 2020 electronically. This payment agreement concurs on the potential incentives for Indonesia, particularly East Kalimantan Province, to receive up to US$ 110 million from the Carbon Fund for reducing 22 million tons of carbon emission in East Kalimantan between June 2019 until 2024.

Virtual signing ceremony of the Results-Based Payment of the Land-Based Greenhouse Gas (GHG) Emission Reduction with the Forest Carbon Partnership Facility (FCPF) of the World Bank was conducted on December 15, 2020. Indonesia was represented by the Secretary General of Ministry of Environment and Forestry (MoEF), Dr. Ir. Bambang Hendroyono, M.M., and the World Bank was represented by Country Director for Indonesia and Timor-Leste, Satu Kahkonen, also attended by the Governor of East Kalimantan, Dr. Ir. H. Isran Noor, M.Si.. Following the ceremony, a webinar was conducted with the theme “Towards the Implementation of FCPF-Carbon Fund Indonesia – World Bank Emission Reduction Payment Program”. More than 100 participants attended this event from related ministries, representatives of the World Bank, representatives of foreign diplomatic missions related to FCPF-Carbon Fund, East Kalimantan provincial agencies, universities, private sectors and development partners in East Kalimantan.

The signing of ERPA marks the beginning of the implementation stage of the GHG Emission Reduction Program through the FCPF-Carbon Fund scheme in East Kalimantan, and measurement of emission reduction achievements will be reported for the first time to the World Bank in the first quarter of 2021. The GHG emission reduction program in East Kalimantan is the first sub-national jurisdictional performance-based payment agreement in Indonesia. The Provincial Government of East Kalimantan and MoEF have led the process of proposal drafting for REDD+ emission reduction program since 2015, supported by the Regional Council for Climate Change (DDPI) of East Kalimantan, University of Mulawarman Samarinda, along with other development partners in East Kalimantan.

GGGI Indonesia as a development partner participated in supporting the readiness to implement the FCPF-Carbon Fund emission reduction program by providing technical support, human resources capacity building, institutional preparation, facilitation of stakeholders meetings and was actively involved in the preparation of Emission Reduction Project Idea Notes (ERPIN) and Emission Reduction Program Document (ERPD), as well as the ERPA negotiation process through technical assistance in legal review and preparation of agreement documents.