Climate Change Mitigation

Australia's International Forest Carbon Initiative (IFCI) aims to demonstrate that reducing emissions from deforestation can be part of an effective international response to climate change. Total funding allocated for the initiative to date is $200 million over five years, focused on Indonesia and Papua New Guinea.

Within the framework of the Indonesia-Australia Forest Carbon Partnership, Australia will support Indonesia in the development of its national framework for avoided deforestation and in the implementation of the Kalimantan Forests and Climate Partnership. The latter partnership, the first large scale demonstration activity of its kind, aims to prevent the deforestation of up to 70,000 hectares of Kalimantan's peat land forests, rehabilitate 200,000 hectares of degraded peat land and plant up to 100 million new trees on rehabilitated peat land.

Through the PNG-Australia Forest Carbon Partnership, Australia will assist Papua New Guinea to develop its avoided deforestation policies, forest carbon measurement system and demonstration activities to enable Papua New Guinea's participation in future international forest carbon markets. Credible accounting of changes in forested areas is essential for such participation, so as a first step Australia will support Papua New Guinea in the development of a rigorous forest carbon measurement and accounting system.

Australia's contribution to the World Bank's Forest Carbon Partnership Facility will assist developing countries to establish credible estimates of their national forest carbon stocks, identify sources of forest-related emissions, determine the opportunity costs of avoided deforestation interventions and design appropriate response strategies.

Assisting countries with policies and programs that support sustainable development, particularly through initiatives that reduce the carbon footprint associated with the growth of their economies, is an increasingly important area of work for AusAID.

Australia also provides assistance to improve energy sector policies, finance high priority energy projects and support clean energy initiatives. This includes activities that address issues such as energy efficiency and renewable energy in the Mekong and Pacific regions. Australia's partnerships with the multilateral development banks and other donors include the following:

A two year, $7million program of support to the Clean Energy Financing Partnership Facility, managed by the Asian Development Bank. The Facility provides financial resources and technical support to improve energy security in developing countries and reduce carbon emissions through increased use of clean energy.
$3million over two years to a global technical assistance program managed by the World Bank. The Energy Sector Management Assistance Program helps build consensus and provides policy advice on sustainable energy development; and contributes to the transfer of technology and knowledge in energy sector management and the delivery of modern energy services to the poor.

See also:

International Forest Carbon Initiative

July 2008