Effectiveness, efficiency, and equity in jurisdictional REDD+ benefit distribution mechanisms: Insights from Jambi province, Indonesia

Abstract

The jurisdictional REDD+ (JREDD+) mechanism, aimed at reducing emissions from deforestation and forest degradation, has been crucial in global climate change mitigation efforts. However, designing effective, efficient, and equitable benefit-distribution policy at the site level remains a challenge. This research assesses three benefit distribution mechanisms in Indonesia for JREDD+ initiatives, facilitated by the Indonesian Environment Fund (IEF). They include: (1) distribution through the provincial revenue and expenditure budget (APBD), (2) distribution through intermediary institutions (LEMTARA), and (3) direct distribution or transfer to beneficiaries. Each mechanism is evaluated on effectiveness, efficiency, and equity, considering bureaucratic processes and stakeholder capacities. The study utilizes public deliberation by involving relevant stakeholders at the national and Jambi province levels and expert judgment by purposively selecting based on certain criteria to help determine the optimal mechanism as the reference for achieving Indonesia's climate mitigation goals and the administrative intricacies involved. The findings suggest that direct distribution to beneficiaries is the most efficient and equitable, although using LEMTARA is deemed slightly more effective for targeted fund allocation. The study provides recommendations for policy makers on enhancing institutional capacities and integrating flexible inclusive mechanisms to optimize JREDD+ benefit distribution at the sub-national level.