W

hile the terms of a new carbon trading scheme addressing deforestation are debated among leaders and experts, discussions have expanded to include potential projects which could allow pulp and paper firms to cash in on any future policies.

Dubbed the REDD-plus, the mechanism will pave the way for developing countries to seek greater incentives if they conserve forest areas, adopt sustainable environment management programs or plant new trees.

Originally REDD schemes offered incentives to companies in an attempt to reduce emissions from deforestation and degradation of forest areas.

"It is very likely the REDD-plus will be agreed upon at the Copenhagen meeting," Daniel Murdiyarso, a climate expert from the Center for International Forestry Research (CIFOR), told a conference in Bali on Friday.

"There is a general consensus that REDD activities are to be broadened."

Delegates from both developed and developing countries will meet in Bonn on June 1-12 to discuss REDD programs before reporting on developments to the high-level meeting of the UN climate conference in Copenhagen in December.

World leaders are hoping to agree on a successor policy to the Kyoto Protocol in Copenhagen, but talks have slowed as global north and south nations remain at odds over sharing the cost of carbon reduction.

Developing nations have been pushing for developed nations to agree on a 40 percent cut in emissions by 2020, up from 25 percent previously agreed upon, and limit the rise in global temperatures to no more than 2 degrees Celsius.

Senior advisor at the International Forest Carbon Policy at the Nature Conservancy, Wahjudi Wardojo, hailed the REDD-plus initiative as a serious proposal for tackling climate change.

"But the REDD-Plus can only run effectively if developed nations agree to a heavier emissions cut. If demand for carbon remains low, it will be hard to implement the REDD-plus scheme because carbon prices will be cheaper," he said.

Special expert from the Forestry Minister, Togu Manurung, said already some companies were adopting their own schemes.

"Several companies have practiced sustainable forest management as demanded in the REDD-plus scheme," he said, including Pulp and paper companies PT Riau Andalas Pulp and Paper (RAPP) and PT Wirakarya Sakti in Jambi.

Six forest concession holders (HPH), including PT Sumalindo Lestari Jaya in East Kalimantan and PT Sari Bumi Kusuma in Central Kalimantan, are currently applying sustainable forest management schemes.

Indonesia has 200 timber plantations covering an area of more than 4 million hectares.

"From this REDD-plus scheme, Indonesia will have a greater opportunity to receive financial incentives from protecting the forests," Togu said.

Daniel predicted that Indonesia could be granted around US$15 billion worth financial incentives by avoiding forest destruction under the REDD mechanism.