Presented by Beria Leimona (CIFOR-ICRAF) at "Revisiting REDD+ and public finance for forests: Are real impacts visible on the ground?” COP 30 side event on 15 November 2025.
Indonesia’s experience with Results‑Based Payments (RBP) and Ecological Fiscal Transfers (EFT) illustrates how national and subnational finance mechanisms can incentivize forest protection and strengthen climate governance. RBP provides payments upon verified emission reductions or environmental outcomes, while EFT allocates public funds based on ecological indicators. Implementation at the subnational level faces challenges related to MRV capacity, institutional readiness, and regulatory complexity. Indonesia currently operates two RBP models: a national scheme—exemplified by GCF Output 2—that distributes benefits proportionally to provinces, and jurisdictional schemes that reward provinces with robust MRV systems and governance structures.
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