Indonesia and Norway are set to upgrade the level of the climate deal to bind the two countries in meeting their pledges to cut emissions amid protests from businesses who fear the deal would hamper investment.

Indonesia and Norway signed a letter of intent (LoI) on climate change in May with Oslo extending US$1 billion in funds in exchange for emission cuts from deforestation.

The LoI would be upgraded into a legally binding agreement scheduled to be signed on Sept. 22 on the sidelines of the UN General Assembly in New York.