AusAid has quietly scaled back an ambitious Government project  to offset carbon emissions through re-forestation and rehabilitation of Indonesia.

In 2007, the Govenrmant launched a $100 million scheme to offset CO2 emissions by planting 100 million trees and rehabilitating 200,000 hectares of peatland on the Indonesian island of Kalimantan. The project was to be completed within five years.

With the target completion date approaching, $30 million has been spent but only 50,000 seedlings have been planted and the reflooding of peatlands has yet to start. AusAID now expects that only 25,000 hectares of peatland will be rehabilitated.

AusAID acknowledged that progress has been slow but said it was in line with similar efforts elsewhere. The project has been extented for at least another year and1.4 million seedlings are being raised for future planting.