In Indonesia’s NDC, forestry sector bears the most ambitious emission reduction targets, about 70 percent with own resources and 90 percent with international assistance. To achieve such an ambitious targets, a significant amount of money is required, even when international assistance is available. It expected that an overwhelming majority of the assistance will come in the form of results-based payments (RBPs). In such cases, there is a significant amount of upfront capital that will be required to allow for Indonesia to perform and achieve the emission reduction targets before financial assistance can come in. For which, a structure that provides such upfront capital is needed. Sustainable Land Bond, a concept first designed by The Nature Conservancy, may be able to secure the upfront payment.
In collaboration with The Nature Conservancy, Landscape Indonesia is promoting to and advising the Government of Indonesia in designing and developing a “sustainable land bond”, a bond structure to raise funds to finance the activities to achieve the emission reduction targets in the land-based sectors in Indonesia (agriculture, forestry, and land-use sectors) as committed in Indonesia’s Nationally Determined Contribution (NDC) under the Paris Agreement to the United Nations Framework Convention on Climate Change.