Regencies to receive 60 % compensation fund of carbon trade

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| Sourced From Jakarta Post |

Ten regencies in West Sumatra will receive a large portion of compensation fund from selling carbon trade that will be done in cooperation with Australian-based Carbon Strategic Global (CSG).

Head of the province’s regional representatives Leonardy Harmainy said Friday the compensation fund would be given to regencies that owned protected forests and produced oxygen.

“60 percent of the fund will go into the regencies’ coffers. The provincial and central administration, on the other hand, will receive 20 percent of the fund, respectively,” he told kompas.com.

“We will discuss over the plan after we hold a meeting on the 2009 regional budget on Nov.24,” he said.

The provincial administration has proposed a plan to generate oxygen from around 865,560 hectares of protected forest in 10 regencies and one city at the province.Such proposal came out after it had received an offer from CSG to sell the oxygen to emission-producing countries. CSG said that it would give compensation worth Rp 900 billion (US$750 million) for the regencies that owned the forests in the province.