VZCZCXRO9523
RR RUEHCHI RUEHDT RUEHHM
DE RUEHJA #2459/01 2490836
ZNR UUUUU ZZH
R 060836Z SEP 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 6097
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHKO/AMEMBASSY TOKYO 0750
RUEHBJ/AMEMBASSY BEIJING 4280
RUEHBY/AMEMBASSY CANBERRA 1122
RUEHUL/AMEMBASSY SEOUL 4173
RUCNDT/USMISSION USUN NEW YORK 0668

UNCLAS SECTION 01 OF 02 JAKARTA 002459 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
DEPT FOR IO, OES/EGC, OES/IET AND EAP/MTS 
USAID FOR EGAT/ESP - BARBER AND ANE/TS- MELNYK 
USFS FOR MACKIE 
TREASURY FOR TFCA - BERG 
WHITE HOUSE FOR CEQ - James CONNAUGHTON 
 
E.O. 12598: N/A 
TAGS: SENV KGHG ECON TBIO ENRG ID
SUBJECT: DONOR ROUNDABLE MEETING ON CLMATE CHANGE 
 
¶1. (U) Summary. During a September 5 Donor Roundtable Meeting on 
Climate Change, Agus Purnomo, Executive Director, National Steering 
Committee for the Conference of Parties 13 (COP 13) updated donor 
partners and embassy officials on COP 13 preparations.  Joe 
Leitmann, Environment Coordinator, World Bank Indonesia presented on 
the World Bank's proposed mitigation mechanism: the Reducing 
Emissions from Deforestation and Degradation (REDD) initiative. 
Leitmann also addressed the status of the Indonesian REDD proposal. 
Hakan Bjoerkman, United Nations Development Program (UNDP) Country 
Director, and Dr. Rizaldi Boer, UNDP Senior Advisor, concluded the 
meeting with a presentation on adaptation and helping Indonesia cope 
with the impact of climate change. End Summary. 
 
----------------------- 
COP 13 Planning Update 
----------------------- 
 
¶2. (U) Purnomo described the draft COP 13 agenda as four likely 
principal items: mitigation, an adaptation funding mechanism, 
reducing emissions from the forestry sector and technology transfer. 
 Purnomo said that successful outcomes for these areas depended 
largely on the success of other upcoming climate change meetings, 
including the September 24 climate change discussions on the 
sidelines of United Nations General Assembly, the September 27-28 
Major Economies Meeting in Washington and the October 24-25 Pre-COP 
13 Planning Meeting in Bogor. 
 
¶3. (U) Purnomo reported that logistics planning for COP 13 
continues.  COP 13 organizers anticipate 191 countries will 
participate, with 2,500 official delegates, including 120 
Environmental Ministers.  Organizers expect an additional 2,500 
Media participants and 5,000 civilian society participants from 
NGOs, corporations and other interested groups for a total of 10,000 
participants.  COP 13 will feature 800 sessions and three major 
exhibits: a Clean Development Mechanism (CDM) market place and 
carbon expo; a green/cool energy exhibit; and a climate friendly 
automotive exhibit. Purnomo emphasized that Embassies should prepare 
delegations for the fact that COP 13 will not be a stage for 
speeches and will feature only three plenary sessions.  Minister of 
Environment Rachmat Witoelar, as COP 13 Chairman, will open the 
working plenary session.  President Yudhoyono will open the High 
Level Session on December 11.  Chairman Witoelar will then address 
the final plenary session to close the event. 
 
¶4. (U) Purnomo also noted that the Indonesian Minister of Finance 
Sri Mulyani Indrawati was seeking an alternate date for the side 
meeting with finance ministers in order to accommodate U.S. Treasury 
Secretary Paulson's interest in attending. The Ministry of Finance 
 
SIPDIS 
expects 20 ministers to attend the ministers' meeting (currently 
planned for December 11) and 20 deputy ministers to attend the 
deputies' meeting (currently planned for December 10).  Purnomo also 
described a likely trade ministers meeting on December 9-10 that 
would include 20 trade ministers and deputies. 
 
--------------------------- 
World Bank REDD Initiative 
---------------------------- 
 
¶5. (U) Joe Leitmann, Environment Coordinator, World Bank Indonesia, 
presented the World Bank's proposed mitigation mechanism: the 
Reducing Emissions from Deforestation and Degradation (REDD) 
initiative. The REDD mechanism proposes that countries able to 
reduce deforestation against an agreed future estimate would be 
compensated for the amount of resulting reduction in carbon 
emissions.  Leitmann noted that the potential value for compensation 
for Indonesia is significant, with estimates ranging from $500 
million and $2 billion. 
 
6.(U) Leitmann explained that the Forest Carbon Partnership Facility 
(FCPF) is a likely instrument for REDD.  The objective would be to 
kick-start the forest carbon market through testing approaches 
(national and subnational, market and nonmarket), incentive systems, 
institutional arrangements and payment mechanisms.  He noted that 
discussions of the FCPF have accelerated since last year with 
several tropical countries (Democratic Republic of Congo, Brazil, 
Costa Rica, Papua New Guinea, and Indonesia) expressing interest in 
participating and a number of industrial countries (Germany, the 
United Kingdom, Australia, France, Belgium and Italy) expressing 
interest in financing. 
 
JAKARTA 00002459  002 OF 002 
 
 
 
¶7. (U) Leitmann described the Indonesian REDD proposal as the most 
advanced REDD country proposal at this time.  The Ministry of 
Environment has set up seven cross-Ministry working groups to work 
on technical proposals for Bali on adaptation, forestry, energy, 
technology transfer, Clean Development Mechanism, financial 
mechanisms and post-2012 Kyoto Protocol plans. The goal of the 
Indonesian REDD is to develop a workable carbon financing mechanism 
for avoided deforestation that is ready for presentation at the Bali 
COP.  Using public funds initially, the GOI would scale up proposed 
activities and put them into practice by the end of the Kyoto period 
in 2012. 
 
--------------------------------------------- --------- 
Adaptation - Coping with the Impact of Climate Change 
--------------------------------------------- --------- 
 
8.(U) UNDP's Country Director Hakan Bjorkman and Senior Advisor Dr. 
Rizaldi Boer presented on the UNDP efforts to help the GOI plan for 
adaptation.  Bjorkman noted that the UNDP's goal is to help GOI plan 
for and deal with the consequences of increasing climate related 
disasters, including floods, rising sea levels, and food security 
issues.  The UNDP is working with the government to implement a 
"climate proofing" concept to increase the resilience of sectors and 
communities to current and future climate risks, through six 
intervention strategies: 
 
--revisiting and adjusting long life infrastructure to become 
climate proof; 
--revisiting and synchronizing local and national development 
plans; 
--policy and regulation reform; 
--institutional capacity buildings; 
--awareness rising and community empowerment; and 
--climate research. 
 
¶9. (U) The UNDP hopes to complete the national adaptation strategy 
and program by the end of 2007 and then begin donor harmonization 
activities and program/project implementation in 2008. 
 
---------------------------- 
GOI Wants Donor Coordination 
---------------------------- 
 
¶10. (U) Following the presentations, speakers fielded a number of 
questions.  A common theme emerged from speakers and participants 
that Indonesia does not want a variety of funds from different 
donors. Indonesia would prefer to work climate change activities 
through a multidonor fund such as the World Bank proposed Indonesia 
Climate and Resource Use Sustainability (ICARUS) Fund.  BAPPENAS 
(the GOI planning agency) prefers that donors integrate a pooled 
activity on climate change into the five-year development plan for 
Indonesia.  Attendees also noted that many G-77 countries are not 
happy with the management of the Global Environment Facility (GEF) 
adaptation fund.  Purnomo asked donors to work productively and 
constructively together and not to create tensions through pursuit 
of solitary activities. 
 
¶11. (SBU) Note: For electronic copies of the presentations, contact 
ESTH Officers Machut Shishak shishakma@state.gov or Colette 
Marcellin marcellinca@state.gov. 
 
 
HUME