RI-US begin discussions on second debt-for-nature deal to save forests
ANTARA News | January 16, 2010
The United States government was pleased to announce on Friday the start of discussions toward conclusion of a second debt-for-nature agreement under the US Tropical Forest Conservation Act (TFCA) to finance tropical forest conservation.
US Embassy press release said the TFCA authorized reduction and re-direction of certain debt to support tropical forest conservation in eligible development countries.
It said the US Treasury Department had provisionally set aside over US$19 million for the treatment of eligible debt. Initial discussions regarding an agreement began this week in Jakarta between representatives of the US and Indonesian governments.
"This is an important symbol of our partnership with Indonesia on issues of climate change and the environment. It is a practical way we can work together to protect critical forests and mitigate climate change," US Ambassador to Indonesia Cameron R. Hume said.
The first TFCA agreement, signed on June 30, 2009, will reduce Indonesia`s debt payments to the U.S. by nearly US$30 million over eight years.
In return, the Government of Indonesia will commit these funds to support grants to protect and restore tropical forests in Sumatra.
The agreement was the largest debt-for-nature swap under the TFCA thus far and was made possible through contributions of US$20 million by the US Government and a combined donation of US$2 million from Conservation International and the Indonesian Biodiversity Foundation (Yayasan Keanekaragaman Hayati Indonesia, or KEHATI).
To date, 13 countries have entered into debt-for-nature agreements under the TFCA.
Over time, these debt-for-nature programs will together generate over US$218 million to protect tropical forests. (*)
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