From the Sydney Morning Herald:

A multibillion-dollar plan to protect forests and reduce global warming is to be backed by an alliance of nations that are home to more than 80 per cent of the world's tropical rainforests.

The grouping of up to 20 countries will be announced during United Nations talks on climate change in New York on Monday” following a meeting chaired by Indonesia's President” Susilo Bambang Yudhoyono. Critically” the alliance includes Brazil and Indonesia” which are the world's fourth and third largest greenhouse gas emitters once deforestation is taken into account. Other members are Costa Rica” Colombia” the Democratic Republic of Congo” Malaysia” Mexico” Papua New Guinea and Peru.

In an effort to swing attention away from reducing industrial carbon emissions” Mr Witoelar [Indonesia's Environment Minister] said tropical forest management had to become part of the post-Kyoto agenda.

The concept of “avoided deforestation” must be recognised and rewarded” he said. Essentially” countries with tropical forests are asking to be compensated for not logging them” probably with “carbon credits”. Under the Kyoto protocol” a carbon credits scheme of financial incentives excludes forest protection. Only replanting is eligible for assistance.

Indonesia's Forestry Minister” Malam Kaban” speaking from Beijing” said Indonesia could sell 14 million cubic metres of logs a year” but was selling only 9 million to promote sustainability. “Who pays? We are saving the forest but taking an economic loss”” Mr Kaban said. “The demand is there” so there is no reason not to cut.”

See also the World Bank Forest Carbon Partnership Facility website and the report by Forest Peoples Programme highlighting the risks of avoided deforestation schemes

for indigenous peoples living in the forests.