Incentives and disincentives for reducing emissions under REDD+ in Indonesia
Edited book (chapter)
Nurfatriani, Fitri, Salminah, Mimi, Cadman, Tim and Sarker, Tapan. 2018. "Incentives and disincentives for reducing emissions under REDD+ in Indonesia." Hossain, Moazzem, Hales, Robert and Sarker, Tapan (ed.) Pathways to a Sustainable Economy: Bridging the Gap between Paris Climate Change Commitments and Net Zero Emissions. Switzerland. Springer. pp. 191-207
| Chapter Title | Incentives and disincentives for reducing emissions under REDD+ in Indonesia |
|---|---|
| Book Chapter Category | Edited book (chapter) |
| ERA Publisher ID | 3337 |
| Book Title | Pathways to a Sustainable Economy: Bridging the Gap between Paris Climate Change Commitments and Net Zero Emissions |
| Authors | Nurfatriani, Fitri (Author), Salminah, Mimi (Author), Cadman, Tim (Author) and Sarker, Tapan (Author) |
| Editors | Hossain, Moazzem, Hales, Robert and Sarker, Tapan |
| Page Range | 191-207 |
| Chapter Number | 11 |
| Number of Pages | 17 |
| Year | 2018 |
| Publisher | Springer |
| Place of Publication | Switzerland |
| ISBN | 9783319677019 |
| 9783319677026 | |
| Digital Object Identifier (DOI) | https://doi.org/10.1007/978-3-319-67702-6_11 |
| Web Address (URL) | https://link.springer.com/chapter/10.1007/978-3-319-67702-6_11 |
| Abstract | This chapter explores the fiscal incentives and disincentives that contribute either positively or negatively to reducing emissions from deforestation and forest degradation (REDD+) in Indonesia. Indonesia is an important participant in the UN Framework Convention on Climate Change programme on REDD+. The programme is funded through financial contributions from developed to developing countries, which can eventually be part of a country's nationally determined contribution to reducing emissions, either domestically, or via international emissions trading. Our study finds that there are a number of formal charges, fees and taxes that apply on forest-related activities in Indonesia, which are stipulated within regulations promulgated by various government departments. A range of informal subnational charges also apply to forest-related activities, which has often provided a monetary incentive for local government, especially forest-rich districts, to exploit their timber resources. However, this has been proven as a disincentive for REDD+ implementation in Indonesia. We also find that there is a need for improved financial governance in future fiscal policy reform, which should include the removal of perverse incentives for forest conversion, the equitable and accountable distribution of financial incentives, the prevention of corruption and fraud, and the strengthening of economic benefits for smallholders. We recommend that in implementing the REDD+, the Government of Indonesia should consider providing incentives for the nonexploitation of forests by businesses engaged in the provision of environmental services as well as carbon transactions. This could take the form of private investments, private-public partnerships or civil society engagement in forestry and land use change, and may include incentives such as payment for ecosystem services and for forest ecosystem restoration. |
| Keywords | Climate change; Fiscal incentives and disincentives; Indonesia; REDD+ |
| ANZSRC Field of Research 2020 | 350201. Environment and climate finance |
| Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
| Byline Affiliations | Research and Development Centre for Social Economic Policy and Climate Change, Indonesia |
| Griffith University | |
| Journal Title | Pathways to a Sustainable Economy: Bridging the Gap between Paris Climate Change Commitments and Net Zero Emissions |
| Institution of Origin | University of Southern Queensland |
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