[Title] Bilateral Cooperation on Climate Change Between the Government of Japan and the Government of Indonesia

1 The Government of Japan and the Government of Indonesia (hereinafter referred to as “both sides”) reaffirm the urgent necessity of maintaining and conserving the environment and resolving the climate change issues and confirm to cooperate constructively to ensure a successful 17th Conference of the Parties (COP17) to the United Nations Framework Convention on Climate Change (UNFCCC) in South Africa.

2 Both sides reaffirm the remarkable record of cooperation between Japan and Indonesia in the field of climate change, such as the Low Carbon and Resilient Development Program, and seek to explore further cooperation in this field.

3 Both sides seek to further implement cooperation on REDD+ (Reducing Emissions from Deforestation and Forest Degradation - plus), recognizing the importance of urgently addressing the issue and reaffirming the past and on-going forest-related cooperation in promoting sustainable forest management and others.

4 Both sides affirm that advanced technologies related to energy conservation and renewable energy and other greenhouse gas (GHG) emission reduction actions in the industrial and other areas are important to address climate change issues while achieving sustainable growth. Both sides seek to further explore and to implement cooperation in these fields.

5 Both sides welcome the progress of discussions for establishing an offset credit mechanism, and they will, under close coordination between DNPI (National Council on Climate Change) on the Indonesian side and the Embassy of Japan on the Japanese side, broaden the consultation process both at public and private sectors through identifying and implementing model projects, capacity building and joint studies, building on the on-going activities, in order to enhance mutual understanding on the mechanism in line with the principles of UNFCCC and the Cancun Agreements, and to promote concrete actions for GHG emission reductions.

6 Both sides recognize the importance of building a framework of a mechanism of robust measurement, reporting and verification to ensure transparency of actions of GHG emission reductions in line with the principles of UNFCCC and the Cancun Agreements.

7 Both sides welcome the progress of cooperation on the preparation for establishing a MRV (Measurement, Reporting and Verification) agency in Indonesia and decide to work together closely, while recognizing the importance of building the capacity in Indonesia.

8 Both sides reaffirm the importance of regional cooperation for low-carbon growth. In this regard, Indonesia welcomes the East Asia Low Carbon Growth Partnership initiative proposed by Japan, and will actively participate on the dialogue meeting in Japan in April 2012.