T

he government has decided to delay awarding permits for forestry carbon projects so it can first issue regulations that set out detailed arrangements for business mechanisms and financing schemes.

Through the internationally recognized mechanism called Reducing Emissions from Deforestation and Degradation (REDD), forest-rich regions can receive funds from industrialized countries to repair destroyed forest and maintain the integrity of virgin forest.

In return, industrialized countries can receive credits indicating they have lowered their emissions levels by enhancing or securing tons of carbon stocked in trees.

The Forestry Ministry said many local authorities had gone too far in the carbon-trading business by offering up their forests to carbon brokers and international organizations in a bid to cash in quickly on the new scheme.

"We have identified more than 20 REDD-related projects on the starting blocks, especially in Kalimantan, Sumatra and Papua provinces. But the central govern-ment will not issue permits until we have regulations in place," the ministry's head of research and development Tachrir Fathoni told reporters Friday.

The REDD, an international mechanism adopted at the 2007 Bali climate change conference, was expected to take effect after 2012 when the emissions reduction commitment in the 1992 Kyoto Protocol expires.

The Protocol obliges rich nations to cut five percent of their emissions against a 1990 baseline.

Carbon dioxide (CO2) emissions are the main contributor to the climate change which is bringing on global warming. Degradition of the world's forested lands contributes about 20 percent of all global emissions.

Tachrir said many carbon brokers and international NGOs had been approaching local authorities to develop the REDD projects.

"But we are hoping local administrations will show some restraint and wait for mecha-nisms from the *central* government. If they don't, they might not benefit from the financial incentives from the REDD business," he said.

The ministry is expected to issue a ministerial decree on REDD this month, which would elaborate business mechanisms and how to calculate carbon emissions stocked in the forests.

"Right now we're waiting for a response from the Finance Ministry to formulate a decree regulating the REDD financial mechanisms," Tachrir said.

He added said the planned decree would determine how portions of the financial incentives would be shared among the central government, local authorities and the communities affected by the REDD projects.

Edy Purwanto, an employee of the National Forest in Kutai, East Kalimantan, said many regents in that province were unaware of REDD business ventures.

"They're interested in REDD because of the big dollar signs project developers are promising. But they don't know the details."

Edy said further REDD schemes could threaten the country's forestry sector and cause conflicts among communities and local and central authorities.

Tachrir agreed possible conflicts were looming high as the stakeholders got ready to fight for the funds.

"That's why we need clear-cut rules of the game from the beginning," he said.

Indonesia is the third largest forested nation with 120 million hectares of tropical forest.

The ministry is also conducting pilot projects for REDD schemes to ensure the international community that the ventures will in fact contribute to emissions reductions.