Indonesia becomes showcase country in Norway’s result-based forest financing system

Indonesia, which has dramatically reduced its deforestation, has received three forest carbon payments for emission reductions from Norway since 2022 and become the most promising country in the Norwegian aid-financed result-based funding scheme, overtaking Brazil and Guyana. However, key uncertainties remain - emissions from peat, the largest source of Indonesia’s forest emissions, are not included in the bilateral deal and there are signs that deforestation may be increasing.