03 January 2011, 23:37 BST
Norway took the lead during the Copenhagen Climate Summit, offering $1 billion to developing nations that protect their forests, thereby reducing the world's carbon emissions.
Indonesia announced it will protect one of its largest, richest forests and peatlands, the Central Kalimantan province on Borneo island. The area produces much of Indonesia's GHG because of rapid deforestation and destruction of peat swamps.
For two years, no new leases will be approved to clear forests and peatlands. There are about a million hectares of oil palm plantations there as well as a growing coal-mining sector.
Indonesia will have to provide proof of emissions reductions through a transparent auditing system. It's a step toward the implemention of REDD (Reducing Emissions from Deforestation and Degradation), a key method for reducing emissions by protecting the world's remaining undisturbed natural areas.
REDD has received about $4 billion in pledges.
Source: Sustainable Business