LH-Fund: A New Hope in Facing the Climate Crisis

Yayasan Madani welcomes the launch of the LH-Fund as an important step in implementing the Paris Agreement, while emphasizing that the fund must prioritize peatland restoration and social forestry, and be managed in a participatory and transparent manner that respects Indigenous Peoples’ rights in order to deliver real impacts on climate action and people’s welfare

October 9, 2019

[Jakarta, 9 October 2019] Yayasan Madani Berkelanjutan welcomes the Indonesian Government’s launch of the LH-Fund, aimed at reducing emissions from deforestation and forest degradation, promoting sustainable forest management, conservation, and enhancing carbon stocks under the REDD+ framework.

The establishment of the LH-Fund has long been anticipated, as it is expected to serve as a catalyst to accelerate environmental protection and restoration programs, ensuring that Indonesia is no longer repeatedly struck by disasters driven by the escalating climate crisis—particularly forest and land fires and the resulting haze, which have claimed lives and caused severe economic, health, and reputational losses.

“Today, Indonesia has taken a step forward in implementing the Paris Agreement in a concrete manner to achieve its current climate commitments and to raise its climate ambition in the future,” said Muhammad Teguh Surya, Executive Director of Yayasan Madani Berkelanjutan. “This new instrument must be utilized effectively by focusing on priority programs that generate broad impacts on both the climate and community well-being, such as accelerating peatland ecosystem restoration and strengthening post-permit support for social forestry so that it can contribute to achieving Indonesia’s NDC targets.”

Accelerating and expanding peatland restoration—including in burned concession areas—is key to preventing the recurrence of devastating forest and land fires that continue to harm communities. Meanwhile, social forestry, beyond being a strategy for economic equity, also holds significant potential to contribute to Indonesia’s climate commitments, provided there is strong support from the government and other stakeholders.

Madani also appreciates the Minister of Environment and Forestry’s emphasis on the strength and local wisdom of Indigenous Peoples and local communities, whose access to environmental financing should be facilitated and strengthened.

“Beyond ensuring easier access to funding, we also hope that an institutionalized mechanism for community participation will be built into the operationalization of the LH-Fund, so that communities and civil society have space to help determine funding priorities and to submit grievances should their rights be violated in the implementation of mitigation actions financed by the LH-Fund,” said Anggalia Putri, Madani’s Knowledge Management Manager.

“Institutionalized participation is crucial because, as one of the instruments for climate governance, the LH-Fund must ultimately operationalize the principles stated in the Preamble of the Paris Agreement, including respect for human rights, the rights of Indigenous Peoples and local communities, gender equality, and food security,” she concluded.

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