Indonesia Australia Forest Carbon Partnership



The Indonesia Australia Forest Carbon Partnership (IAFCP) is an initiative of the Australian Government. It supports international efforts on Reducing Emissions from Deforestation and Forest Degradation in Developing Countries (REDD) through the United Nations Framework Convention on Climate Change (UNFCCC). It is jointly administered by the Australian Department of Climate Change and AusAID. It also forms part of a wider climate change program in Australia called the International Forest Carbon Initiative.

The projects included in the IAFCP are:

1) Kalimantan Forests and Climate Partnership (KFCP):Australia has committed AUD 30 (USD 24.86) million to establish the Kalimantan Forests and Climate Partnership. It aims to demonstrate a credible, equitable and effective approach to REDD+, including from the degradation of peatlands. The initial focus is on 120,000 hectares of degraded and forested peatland in Central Kalimantan, Indonesia. Early lessons learned from the KFCP are included in the joint Indonesia – Australia submission on REDD to the UNFCCC negotiations in Poznan in December 2008.

2) Sumatra Forest Carbon Partnership (SFCP):The AUD 30 million (USD 24.86) Sumatra Forest Carbon Partnership was jointly announced by Indonesia and Australia in March 2010 and is the second practical REDD+ Activity under the Indonesia-Australia Forest Carbon Partnership. The activity will be located in Jambi Province on the island of Sumatra.  It will differ from the Kalimantan Forests and Climate Partnership in its location and forest type (on mineral soils rather than peatland) to test application of REDD+ in different contexts. 

3) Bilateral package of support to Indonesia on forests and climate:Australia is providing AUD 10 million (USD 8.28) to support Indonesia's forest and climate policy development. This is being used to support Indonesia on measurement, reporting and verification for REDD+ including development of Indonesia's National Carbon Accounting System and its related Forest Resource Information System. Indonesia and Australia submitted a joint submission to the UNFCCC on MRV for REDD+ in August 2009. 

The partnership is esteemed to build upon and provide clearer goals for existing co-operating including in policy development and capacity building, technical support regarding the national carbon accounting system and further development and assistance in enabling REDD. 

Stakeholder engagement and participation

The KFCP is designed to deliver both tangible, environmental and development results as well as learning results with an emphasis on adaptability and flexibility. Within this initiative, CARE serves as an implementing partner to lead a comprehensive community engagement strategy that ensures equitable, transparent processes as well as facilitating key technical interventions, including:

•Village-based land use planning;

•Community-based forest management;

•Fire management;

•Sustainable livelihoods opportunities;  

•Strengthening local institutions; and

• Payment mechanisms to distribute REDD incentives.

Land tenure arrangements and carbon rights

The KFCP aims to ensure that all project interventions, as far as possible, contribute to respecting and securing rights and reducing poverty, and at the very least  do no harm. In addressing this social dimension of REDD, the project places emphasis on the interest and rights of Indigenous Peoples, women and other marginalized groups. In particular, the KFCP is approaching this in the context of Indonesian forestry law, which grants or recognises particular types of forest use rights to landowners, forest-dependent communities, private companies, and other entities. 

Reference levels

The KFCP is investigating leakage by trialing investing locally in sustainable livelihoods that reduce dependence on the use of canals, fire, and land clearing. At a regional level, the REDD activity will be implemented within a much larger development planning area covered by national and provincial spatial plans incorporating restrictions on forest conversion. At the national level, it will be designed to fit with national policies and frameworks. The National Carbon Accounting System for Indonesia will be able to identify leakage that may occur at local, regional and national levels.  


Australia’s approach to MRV has been to provide scientific, technical and analytical support for Indonesia’s efforts to develop their own national carbon accounting and monitoring system. This is being done through IFCI Australia is also offering advice and assistance to Indonesia as they develop a blueprint on what the functions and performance characteristics should be for their system. IFCI is providing $10 million AUD to support Indonesia developing a robust MRV system and a National Carbon Accounting System.