VIVAnews - The United States Government has announced the start of discussions toward conclusion of a second debt-for-nature agreement under the U.S. Tropical Forest Conservation Act (TFCA) to finance tropical forest conservation.
The TFCA authorizes reduction and re-direction of certain debt to support tropical forest conservation in eligible developing countries.
The U.S. Treasury Department has provisionally set aside over $19 million for the treatment of eligible debt. Initial discussions regarding an agreement began this week in Jakarta between representatives of the U.S. and Indonesian Governments.
"This is an important symbol of our partnership with Indonesia on issues of climate change and the environment," U.S. Ambassador Cameron R. Hume said in the US Embassy's statement to VIVAnews, Friday 15 January 2010. "It is a practical way we can work together to protect critical forests and mitigate climate change," Hume said.
The first TFCA agreement, signed on June 30, 2009, would reduce Indonesia’s debt payments to the U.S. by nearly $30 million over eight years. In return, Indonesia would commit these funds to support grants to protect and restore tropical forests in Sumatra.
The agreement was the largest debt-for-nature swap under the TFCA thus far and was made possible through contributions of $20 million by the U.S. Government and a combined donation of $2 million from Conservation International and the Indonesian Biodiversity Foundation (Yayasan Keanekaragaman Hayati Indonesia, or KEHATI).
To date, 13 countries have entered into debt-for-nature agreements under the TFCA. Over time, these debt-for-nature programs will together generate over $218 million to protect tropical forests.
