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Finland to fund sustainable energy from forests in Indonesia

Source:  Copyright 2010, Reuters
Date:  December 10, 2010
Original URL: Status ONLINE


Finland is aiming to set up an scheme to produce renewable biomass energy from Indonesian forests next year, following in the footsteps of a lauded Norwegian agreement to tackle Indonesia's high deforestation.

Finland's scheme, with initial investment of four million euros, is small compared to the $1 billion pledged by Norway, but is a sign more countries may look to do bilateral deals if U.N. talks in Cancun fail to produce a global climate pact.

Australia said on Thursday it would increase its spending on climate change financing by giving Indonesia an additional $45 million for projects to reduce emissions from deforestation and degradation (REDD) and for climate change adaption.

Protecting forests is seen by some as the easiest and cheapest option in the fight against climate change. The Finnish project aims to support the forestry industry turn toward renewable energy production.

"The focus will be on the utilization of ...

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