The Jakarta Post
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.
“With a binding agreement, Norway must pay the promised funds to a financial institution,” presidential special assistant on climate change Agus Purnomo said Thursday.
Indonesia, meanwhile, would have to meet the pledges as stipulated in the agreement.
“We will be obliged to stop issuing new licenses to exploit remaining peat...