By Gde Anugrah Arka

NUSA DUA, Indonesia, Dec 13 (Reuters) - Delegates at climate talks in Bali are close to agreeing guidelines for a pay-and-preserve scheme for forests under a future deal to fight global warming, Indonesia's foreign minister said on Thursday.

Under the scheme called Reduced Emissions from Deforestation in Developing Countries (REDD), preservation of forests could become a tradeable commodity with the potential to earn poor nations billions of dollars from trading carbon credits.

Scientists say deforestation in the tropics is responsible for about 20 percent of all man-made carbon dioxide (CO2) emissions and preserving what's left of them is crucial because they soak up enormous amounts of the gas.

CO2 is blamed for the bulk of global warming that the U.N. Climate Panel says will trigger rising seas, rapid melting of glaciers and more droughts, floods and intense storms.

"In the meeting this morning, it was very clear that there was enthusiasm from developed countries on the importance of forests in the context of climate change," Indonesian Foreign Minister Hassan Wirajuda told reporters.

"Developed countries and countries with large forest areas agreed to formulate a world map as part of the cooperation, involving not just governments, but also institutions like universities and research bodies."

Curbing deforestation has been a top issue for the thousands of delegates at Bali because the Kyoto Protocol, the existing U.N. climate pact, does not include schemes that reward developing nations for preserving tropical rainforests.

HARDWOOD

At its simplest, the REDD scheme would allow carbon credits to be issued to qualifying developing nations. Rich nations buy these credits to offset their emissions at home.

It's a system that commoditises forests and rewards poor nations for keeping forests that might otherwise be cleared for their hardwood or to create vast plantations for biofuels or timber to feed ever-growing global demand for pulp and paper.

The World Bank has already launched plans for a $300 million fund to fend off global warming by preserving forests, which includes a $100 million "readiness" fund to give grants to around 20 countries to prepare them for large-scale forest protection schemes.

Grants will fund projects including surveys of current forest assets, monitoring systems and tightening governance.

A second $200 million "carbon finance mechanism" will allow some of these countries to run pilot programmes earning credits for curbing deforestation.

To help nations prepare, the Bali meeting is expected to launch a series of pilot projects while agreeing to study the issue further.

Indonesia, which is losing vast areas of forest every year, is keen to earn money from saving what's left and some provinces have already taken a headstart by signing agreements with international carbon investment companies.

The government also plans to launch studies measuring emission cuts from deforestation and distributing the benefits from a possible financing scheme to forest-dependent communities. (Writing by Sugita Katyal; Editing by XX)

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