Indonesia's rich natural resources, particularly its forests and peatlands, are vital for climate regulation and the nation's development trajectory. However, the extraction of these resources has led to significant environmental degradation. Just Transition Indonesia promotes the inclusion of Gender and Social Inclusion (GESI) components in the expansion of the EFT framework.

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EFTs offer a mechanism to align local development priorities with environmental conservation by providing financial rewards to subnational governments for achieving ecological goals. This mechanism offers abundant opportunities for socioeconomic development in an inclusive and sustainable manner. A comprehensive evaluation of EFT implementation across various regions will be conducted, identifying both successes and challenges.

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This work takes place in 2024 by one of Just Transition Indonesia’s founder. It employs a mixed-methods approach, combining quantitative and qualitative data collection through fieldwork, focus group discussions, and interviews with local stakeholders. By engaging with village leaders, community members, and government officials, this work gathers insights into how EFTs are allocated, utilized, and perceived at the local level. This work informs recommendations for improving the design and effectiveness of EFTs in promoting sustainable land use and environmental conservation across Indonesia.