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DRAM: Strategic Foundation for Carbon Projects in Indonesia

Policy and industry News

Addressing Climate Change through Carbon Projects

Indonesia, as a country rich in natural resources, also bears a significant responsibility in maintaining global climate stability. Amid the increasingly evident threat of climate crisis, carbon projects have emerged as a strategic instrument capable of driving concrete mitigation actions. These projects not only function as technical efforts to reduce greenhouse gas (GHG) emissions but also create economic value through carbon trading mechanisms. In this context, the preparation of a Mitigation Action Plan Document (DRAM) is key to ensuring that carbon projects are structured, documented, and recognized both nationally and internationally.

Understanding DRAM: The Foundation of Well-Planned Carbon Projects

The Mitigation Action Plan Document (DRAM) serves as a strategic foundation for implementing carbon projects in various sectors such as forestry, energy, agriculture, and waste management. DRAM is a tool for designing, documenting, and validating emission reduction efforts to be implemented in a specific area or by a specific entity. In the context of carbon projects, DRAM ensures that each proposed mitigation action is based on strong scientific evidence, uses standardized methodologies, and has measurable and independently verifiable emission reduction potential.

The preparation and implementation of DRAM refers to Presidential Regulation No. 98 of 2021 on Carbon Economic Value and Minister of Environment and Forestry Regulation No. 21 of 2022 on the Implementation of Carbon Economic Value.

Structure and Content of DRAM in Carbon Projects

The structure of a DRAM generally includes various components needed to describe the potential, plans, and mechanisms for emission reduction within a certain area or project. It is designed to meet both national requirements and international carbon market mechanisms. Key elements usually include:

For a more comprehensive understanding of DRAM’s structure and technical requirements, readers may refer to the official guidelines available through the National Registry System (SRN) of the Ministry of Environment and Forestry: DRAM Preparation Guidelines – SRN KLHK (PDF).

DRAM is a crucial requirement for registering carbon projects in the SRN and serves as supporting documentation in carbon unit certification, both for domestic and international carbon markets.

DRAM’s Contribution to the National Carbon Trading Ecosystem

Indonesia is building an inclusive and credible carbon trading ecosystem. DRAM acts as a document that provides technical legitimacy for developed carbon projects. Projects with a well-prepared DRAM have a greater chance of obtaining emission reduction certification, which can then be converted into tradable carbon units.

Moreover, DRAM encourages carbon projects to not only be profit-oriented but also to deliver sustainable benefits for the environment and local communities. With a DRAM framework, project developers are encouraged to consider co-benefits such as ecosystem restoration, green job creation, and the protection of indigenous communities.

Who Prepares DRAM for Carbon Projects?

In the context of carbon projects, preparing DRAM is not solely the responsibility of the government. Many carbon projects are initiated by private companies, NGOs, local communities, or collaborations between several parties. Key actors include:

  1. Government: As a regulator and facilitator, the government provides guidelines, methodologies, and verification platforms through the national system. The government can also act as a project owner in forest-based or clean energy projects.
  2. Companies: The private sector plays an important role in developing carbon projects, particularly in the energy, industrial, and forestry sectors. They are required to prepare DRAM as a prerequisite for project registration and to obtain emission certification.
  3. Civil Society Organizations (CSOs): CSOs may act as pioneers in implementing community-based projects such as agroforestry or peatland conservation. They also assist vulnerable groups to participate fairly in carbon projects.
  4. Consultants and Technical Service Providers: Professional service providers help prepare DRAM by ensuring emission calculation methodologies comply with applicable standards and by assisting in the validation and verification process.

Strengthening DRAM for Effective Carbon Projects

For carbon projects to be effective and deliver real results, DRAM must be prepared in a participatory manner and based on credible data. The use of digital technologies such as drones, remote sensing, and geographic information systems (GIS) greatly supports data collection and project impact measurement.

Cross-sector and cross-institution collaboration is also essential. Universities and research institutions can provide technical support in establishing baselines and mitigation scenarios. Financial institutions and investors are more likely to support carbon projects with a strong DRAM and measurable emission reduction prospects.

Conclusion

The Mitigation Action Plan Document is the backbone of any credible and sustainable carbon project. Its existence ensures that projects not only meet technical requirements but also deliver positive impacts for the climate, environment, and society. In the rapidly developing carbon ecosystem, having a strong DRAM is not only an administrative prerequisite but also a strategy to build market trust and drive green investment in Indonesia. Thus, DRAM serves as a bridge between local action and global solutions to tackle the climate crisis.

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