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The World Bank has approved a $200 million loan for Indonesia to support the country’s efforts to deal with climate change, including reducing the use of fossil fuels, the lender said in a faxed statement. 

“Indonesia is potentially a major victim of climate change,” Joachim von Amsberg, the World Bank’s country director for Indonesia, said in the statement. “At the same time, Indonesia’s emissions make up a significant part of the global total,” he said, adding the government has shown “strong commitment” in addressing the issue. 

With over 17,000 islands, Indonesia will suffer if sea levels rise. The World Wildlife Fund ranks the country as the world’s third biggest carbon dioxide emitting nation when counting greenhouse gases from deforestation and land-use changes. Only China and the United States rate worse. 

Deforestation and forest degradation account for more than 83 percent of Indonesia’s carbon emissions, according to the WWF. 

It is the World Bank’s first loan to Indonesia specifically to address climate change, the statement said. 

President Susilo Bambang Yudhoyono said last year the government was targeting to cut greenhouse gas emissions 26 percent by 2020 from “business as usual” levels, and as much as 41 percent with international support. 

Forest destruction accounts for more greenhouse emissions than all the world’s passenger cars, trucks and buses, according to the UN. Bloomberg