Multilateral Climate Initiative for POTUS in Indonesia

UNCLAS JAKARTA 000215

SENSITIVE
SIPDIS

FROM AMBASSADOR HUME TO S, D, S/ECC, G, OES A/S JONES
USAID ASIA FOR A/AA FRANK YOUNG, EGAT FOR A/AA MIKE YATES

E.O. 12958: N/A
TAGS: EAGR EAID KGHG SENV PREL ID
SUBJECT: Multilateral Climate Initiative for POTUS in Indonesia


1. (SBU) In advance of the President's visit, the United States
should seek to harness a major cooperative international effort to
help Indonesia achieve reduced emissions by preserving its forests
and preparing it for forest carbon markets. Countries with
substantial (current and planned) forest and climate investments in
Indonesia have expressed a strong interest in closer cooperation
with us. They have suggested a more proactive - even leading - role
for the U.S. in promoting action on forests, peat lands and climate
change in Indonesia. The GOI is open to new partnerships, and a
U.S.-led multilateral climate initiative, matched by new commitments
of resources, would powerfully focus international funding,
technical assistance, and political influence to help Indonesia
sustain large, long-term reductions in greenhouse gas emissions.


2. (SBU) The President's launch of this initiative during his
upcoming visit will maximize Indonesia's and supporting nations'
support. The initiative's launch could be celebrated by announcing
funding for the establishment of a climate change center in
Indonesia focused (at least initially) on the critical
forest/land-use sector. Such a center could form a part of the
platform for multilateral collaboration in Indonesia, taking into
account the interests and potentially considerable resources of
other countries, which might be more than the U.S. is able to
immediately muster for a new initiative. The GOI would be receptive
to this idea given the recent draft proposal shared with USAID to
establish a climate change center for the region.


3. (SBU) Deforestation and peat land destruction have made Indonesia
the third-largest emitter of greenhouse gases. President
Yudhoyono's pledge last year to reduce emissions by 26% over
business as usual by 2020 was reaffirmed in Indonesia's inscription
to the Copenhagen Accord. The mitigation actions inscribed reflect
Indonesia's recognition of the importance of forests to achieving
meaningful emission reductions. Making good on these ambitious
targets will not be easy. Money is only part of the issue here.
Significant and difficult policy and institutional reforms are
critical but will require strong political commitment. Yudhoyono
and his allies need significant and visible international financial
and political support to counter strong vested interests at home as
well as abroad.


4. (SBU) There is much needed to make this effort work. A strategy
is needed to combine technical and financial assistance with policy
dialogue, particularly on forest governance and enforcement. The
legal and financial frameworks are needed to handle anticipated
forest carbon credits. Much stronger emphasis needs to be placed on
peat land management policy and capacity. Forest programs to date
have had little overall effect on deforestation. Progress will be
challenging, but chances are greater if the key group of supporting
countries, working closely with the U.S., works through thorny
policy issues with the GOI and coordinates assistance. These
countries recognize that stronger coordination and cooperation is
needed to achieve the changes critical for long-term impact.
Harnessing and leveraging our combined political, financial and
technical resources makes success in our efforts achieve real impact
- and that Indonesia meets its commitments - more certain.


5. (SBU) OES Assistant Secretary Kerri-Ann Jones can discuss this
initiative during her planned meeting with ministers from Australia,
Germany, Norway, and United Kingdom next week in Bali. This can
include soliciting their support for the climate center as a
platform for collaboration. She could then discuss this proposal
during bilateral meetings with key Indonesians in Jakarta on March
1-2. The U.S., along with the U.K. and Norway, are among those
countries which pledged in Copenhagen to provide $3.5 billion in
quick-start climate financing for forestry. The President has a
golden opportunity to bring together the major donors and make a
long-term impact on reducing emissions from deforestation and peat
land destruction in the world's third largest emitter of greenhouse
gases.

HUME