News
The Prince delivers the Presidential Lecture at the Presidential Palace in Jakarta, Indonesia
3rd November 2008
Ambitious plans to safeguard the world's rainforests by charging developed nations an annual "utility bill" to fund their protection were announced by The Prince of Wales in a speech to the Indonesian President, Dr Susilo Bambang Yudhoyono, and his cabinet in Jakarta.
The proposals developed by The Prince's Rainforest Project would generate "emergency funding" for countries to change their practices and stop deforestation.
The Prince described the rainforests as the "world's greatest public utility" acting as the planet's air conditioning system, storing its largest body of freshwater and providing a livelihood for more than a billion people.
But as developed nations were the driving force behind their destruction, through a demand for products like beef, palm oil, soya and logs, they should be billed for their protection.
It is hoped that a large part of the funds raised from the "utility bills" would come from bonds issued by a international body.
The Prince told the audience gathered in the Merdeka Palace: "Indonesia and the other rainforest nations are stewards of the world's greatest public utility.
"The rest of us have to start paying for it, just as we do for water, gas and electricity."
The Prince added: "Payments should have the characteristics of a commercial transaction, in the same way we pay for our water, gas and electricity.
"In return the rainforest nations would provide eco-services such as carbon storage, freshwater and the protection of biodiversity."
Describing the form the annual billing could take, The Prince said: "These emergency funds could be provided directly by developed world Governments, perhaps from expanded development aid budgets, from surcharges on activities which cause climate change or from the auction of carbon market emission allowances.
"However, I hope that even in the short term the large part of the required funding could be provided by the private sector by subscribing to long-term bonds issued by an international agency.
"The issuing entity would pay the proceeds from the bonds to the rainforest nations. They in turn would use the money to re-orientate their economies to halt or refrain from deforestation."
The Prince hopes the pension industry will be interested in buying the bonds which would be underwritten by Governments in developed countries.
He told the politicians he has had talks with the P8 group - eight of the world's biggest pension funds - who were exploring with the World Bank how its sector could put substantial money into investments that address global warming.
He said: "I call this initiative the 'Pension Plan for the Planet' and if the plan can be realised, it will be investment that can make a difference on a global scale".
The interest paid to bond holders and the money they receive if the bonds were redeemed, would come from funds rainforest countries could get for conserving their forests under the plan - Reduced Emissions From Deforestation And Degradation.
Under the scheme billions of dollars - in the form of carbon credits - could be transferred from industrialised countries to tropical nations to slow greenhouse gas emissions by reducing deforestation rates.
The Prince concluded by saying: "If we stop the destruction of our rainforests, we buy ourselves the necessary time to reconfigure our economies and to deliver the 80% reduction in greenhouse gases that we must achieve by 2050 if mankind is to have a viable future on this planet - it is as stark as that."
Later The Prince of Wales drew attention to Indonesia’s rich history by touring the National Museum of Indonesia which houses local archaeological artefacts and relics dating back to the Stone Age.
The Prince then travelled to the secluded Commonwealth War Graves Commission cemetery in the Jakarta suburb of Menteng Pulo.
His Royal Highness laid a wreath at the site where the remains of more than 1,100 men and women of British Commonwealth and Imperial forces are buried.
He was joined by the Indonesia based ambassadors of six countries whose soldiers are buried at the war grave - New Zealand, Australia, Pakistan, India, South Africa and Canada.
In the afternoon, The Prince of Wales visited the Nahdlatul Ulama Faith and the Environment Conference.
Bringing together all the major religions in Indonesia, the aim of the Conference is to discuss how faith groups can spread the message regarding climate change and the need for faith groups to be instrumental at a community level to take steps to mitigate and adapt.
Click here to read The Prince's speech in full.
Click here to visit The Prince's Rainforest Project website.