Indonesia Releases Carbon Trading Scheme for the Forestry Sector
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10 November 2023 19:07 WIB
TEMPO.CO, Jakarta - Indonesia has launched a carbon trading scheme to boost GHG emissions absorption from the forestry and other land use sectors to reach carbon dioxide reduction targets by 2030.
The Chairman of the Indonesian Association of Forest Concessionaires (APHI) Indroyono Soesilo in a press release quoted on Friday stated that half of the companies holding Forest Utilization Licenses (PBPH) have been included in the carbon trading scheme.
"There are 600 PBPH holders that have been included partly in these carbon schemes," he said.
Indroyono stated that of five sectors that bear the responsibility to lower emissions, forestry is the biggest since not only it is responsible for lowering the emissions, the industry also musters carbon trading activity.
"We must reach the FOLU Net Sink 2030 targets. Thus, a mitigation action plan is necessary which needs investment from the government or private [sector]," he said.
According to Indroyono, PBPH holders must pass several requirements to enter carbon credit, including drafting a Mitigation Action Plan Document (DRAM) before being included in the National Registration System.
Emissions Reduction Certificate (SPN), meanwhile, will be released after verification and monitoring processes. "To conduct 12 mitigation actions from mineral land deforestation reduction, mangrove management, to peat restoration, everything must be included in the mitigation action plan document," he said.
To realize the FOLU Net Sink targets in 2030, the total budget required is US$14 billion, with US$7.3 done by the private sector and US$6.7 billion by the government.
The Ministry of Environment and Forestry recorded 72 PBPH that have registered for environmental services activities or carbon absorption and collection. Out of those 72 PBPH, 32 of them have been included in RKUPH.
RKUPH itself is a mitigation plan for carbon absorption and collection, including the mitigation to reach the FOLU Net Sink target by 2030.
ANTARA
