08/12/2005 - The Government of Canada signed a Letter of Intent with Indonesia today that will see both countries work together in support of new Clean Development Mechanism (CDM) projects.

The CDM is a major component of the Kyoto Protocol. It is a project-based mechanism that assists developing countries in achieving sustainable development goals while allowing public or private entities to invest in greenhouse gas (GHG) reduction activities that will earn them certified emission reduction (CER) credits.

Indonesia is considered to be one of the key CDM markets, offering opportunities in a variety of sectors. Since July 2005, Canada's CDM Office has become actively engaged in Indonesia. This Letter of Intent should help expand Canada's business interests in the area while supporting the Indonesian government's efforts to develop climate-friendly technologies.

Today's announcement comes as over 9000 delegates from around the world are gathered in Montreal for the November 28 to December 9 United Nations Conference on Climate Change. Last week, Canada and Indonesia joined 155 other countries in demonstrating their commitment to the Kyoto Protocol by adopting the 19 decisions of the Marrakech Accords.

Negotiations are continuing as delegates try to adopt clear rules for implementation of the protocol, election of members to key oversight committees and proposals to streamline and strengthen certain instruments of the Protocol such as the Clean Development Mechanism.