29/11/2010 (UPI.com) - A deal to cut deforestation and reduce carbon emission in Indonesia is in jeopardy because of industrial interests, the environmental group Greenpeace said.

Greenpeace said the $1 billion deal between Indonesia and Norway could collapse unless both governments keep palm oil, paper and pulp developers at bay.

The environmental group said the vague definition of forests and degraded land in the bilateral deal means industrialists could use the funds to convert natural forests into plantations.

Meanwhile, Indonesia aims to triple paper and pulp production by 2025 and double palm oil production by 2020, Greenpeace said.

This, coupled with ambiguous legislation, means deforestation funds could actually support the destruction of forests and peatlands, the environmental group warned.

As much as 40 percent of Indonesian forest and 80 percent of the country's peatlands are at risk under the current plans.

Bustar Maitar, a director for the Southeast Asia branch of Greenpeace, said Indonesia has a "progressive" low-carbon vision for his country.

"However, these plans are being systematically undermined by the influence of the palm oil and pulp and paper industry, which is intent on a business-as-usual expansion model that will destroy much of the country's remaining rainforests and peatlands," he said in a statement.