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"We regret the mechanism because it does not involve smallholder forests, village forests or customary forests. As a matter of fact, these forests are more sustainable than those owned by large companies, such as oil palm plantations. The REDD program neglects the customary community`s interests," he said.
Environment Minister Rachmat Witoelar expressed his belief that Indonesia would get US$3.75 billion per year through the REDD mechanism.
"If we pin high hopes on the REDD funds, we will feel cheated. At least 30 percent of the compensation funds will be spent on hiring foreign consultants to take care of certificates of emission reduction (CER) and on other administrative matters such as has happened with the clean development mechanism (CDM)," Rachmat said.
Citing an example, he said Costa Rica which received incentives under the CDM spent nearly 90 percent of the funds on hiring consultants and other managerial services.
"With the price of carbon reaching US$10 per ton, Costa Rica only got US$1 per ton because it spent US$9 on 10 phases of certification, ranging from the assessment of its capability to store and obsorb carbon to the process of certification," he said.
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