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Archived media releases and speeches


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Media Release
Senator the Hon Robert Hill
Leader of the Government in the Senate
Minister for the Environment

Historic Agreement Between Australia and Indonesia on Climate Change

24 October 1996

Australia and Indonesia have taken a significant step forward in their efforts to reduce greenhouse gas emissions and promote sustainable development.

At the Australia-Indonesian Ministerial Forum in Jakarta, His Excellency Mr Sarwono Kusumaatmadja, Minister of State for the Environment in Indonesia, and Australia's Federal Minister, Senator Robert Hill, signed a Statement of Intent to cooperate on Activities Implemented Jointly (AIJ) to mitigate greenhouse gases.

AIJ involves cooperation between countries on projects that reduce, avoid, or sequester greenhouse gas emissions and is an element of broadly based efforts needed to respond to global climate change. A framework for AIJ projects was set out in the decision of the first Conference of the Parties to the Framework Convention on Climate Change (FCCC) in March 1995.

"The signing of the Statement of Intent demonstrates that Australia is following through with the commitments it made in Geneva in July 1996 at the Conference on Climate Change," Senator Hill said.

"It is the first bilateral statement on the AIJ signed by Australia and Indonesia. It is particularly significant that the first agreement Australia has entered into is with Indonesia and it reflects the importance Australia attaches to the relationship."

Senator Hill and his counterpart, Mr Sarwono emphasised that climate change is one of the most pressing medium to long term environment problems facing the world.

"The Statement of Intent demonstrates Australia and Indonesia's commitment to an effective global response," Senator Hill said.

The agreement was signed in the presence of private sector representatives, noting the potential importance of AIJ activities in the bilateral relationship and the key role the private sector will play in implementing AIJ projects.

"Cooperation in the AIJ projects will involve the promotion of commercially driven transfers of environmentally advanced technologies, associated services and investment," Senator Hill said.

Indonesia has signalled that project based cooperative activities to limit greenhouse gas emissions in Indonesia will focus on improving forest management, efficient energy use and production, agricultural land management and livestock-related emission abatement.

Senator Hill and Mr Sarwono agreed that the basic framework was now in place for AIJ projects between Australia and Indonesia.

"This will enable both countries to work together with their respective industrial sectors in a practical, business-like way on a wide range of projects to stabilise greenhouse gas concentrations," Senator Hill said.

"I understand that many Australian companies have already indicated substantial interest in AIJ. They reflect a growing appreciation in Australia of the importance of climate change issues and its potential to affect how business will be done in the 21st century," Senator Hill said.

"Australian industry generally is becoming increasingly engaged in our Greenhouse Challenge program which involves Australian companies having agreed with the Government to undertake projects to reduce greenhouse emissions. The AIJ initiative is, in many respects, the international dimension of the Greenhouse Challenge program and will add further to the contribution Australian industry can make to reducing global greenhouse gas emissions."


Joint Statement of Intent
the Government of the Republic of Indonesia
the Government of Australia
Concerning Cooperation on Activities Implemented Jointly -Pilot
for the Mitigation of Greenhouse Gases

"Imperatives for Australia
Our Environment and Economy"

The Government of the Republic of Indonesia and the Government of Australia (hereafter referred to as the 'Party I and Party II', respectively);

CONSIDERING that Party I and Party II have ratified the United nations Framework Convention on Climate Change (NFCCC) as non-Annex I and Annex I Parties respectively;

CONSIDERING that the Parties wish to facilitate projects to limit greenhouse gas (GHG) emissions in accordance with Decision 5/CP.1 of the First Conference of the Parties of UNFCCC, which established a Pilot Phase for Activities Implemented Jointly (AIJ) among Annex I Parties and Non- Annex I Parties on a voluntary basis;

DESIRING to promote the objectives of the UNFCCC by means including the pilot phase of AIJ; and

RECOGNISING the importance of adhering to the principles of equity and mutual benefits in implementing AIJ;

DO HEREBY declare their intention to cooperate on activities to reduce GHG emissions from all sources to promote sinks for removal of emissions, including through the use of environmentally effective and sustainable technologies in accordance with the prevailing laws and regulations of the Parties.

The Parties agree to the following:

1. The Parties endeavour to promote the following project- based cooperative activities:

a. Transfers of technology to mitigate the effects of climate change.

b. Exchanges of expertise, thereby enhancing human resource development in relation to limiting increases in GHG emissions and protecting and enhancing GHG sinks.

c. Dissemination of information and expertise in the implementation of the AIJ- Pilot Phase through meetings, seminars and workshops.

The above activities will focus on matters by both parties.

2. Implementation of such cooperation be concluded in detailed measures in the form of contracts and/or Memoranda of Understanding.

These contracts and/or Memoranda of Understanding may, be mutual arrangement of Parties I and II and any other project participants, include:

a. establishing procedures to identify projects that are likely to limit GHG emissions, be compatible with and supportive of national environment and development priorities and strategies, and attract private sector involvement;

b. designing methodologies and mechanisms to establish procedures for credible monitoring and external verification of GHG emissions and the tracking and attribution of such emissions, including the determination of reasonable GHG emission baselines;

c. promoting and extending sustainable energy development involving GHG mitigation activities in private and government sectors, including dissemination of information and supporting technical assistance resources through workshops, conferences and information networks;

d. fostering financial mechanisms and instruments to assist private entrepreneurs to build successful enterprises supporting energy, agricultural, livestock and forestry sector projects that contribute to mitigation of climate change; and

e. protecting intellectual property rights and confidential business information.

SIGNED at Jakarta on the twenty fourth day of October in the year one thousand nine hundred and ninety six, in two originals in the English language.

For the Government of the Republic of Indonesia

Sarwono Kusumaatmadja

State Minister for Environment

For the Government of Australia

Robert Hill

Minister of Environment

Commonwealth of Australia