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Indonesia is increasingly demonstrating its commitment to addressing climate change by optimizing the potential of carbon trading. Minister of Environment (LH), Hanif Faisol Nurofiq, emphasized that the forestry sector is a major key in emission reduction efforts, while also opening up new economic opportunities through the carbon market.
According to Hanif, the biocarbon potential from the forestry and land use sector (Forestry and Other Land Uses/FOLU) in Indonesia reaches nearly 50 million tons of carbon dioxide equivalent (CO2e). This figure places Indonesia as one of the countries with significant capacity to contribute to the global carbon trade.
“Almost 60 percent of the national greenhouse gas emission reduction comes from the FOLU sector. With the signing of this cooperation, we hope to stimulate carbon trading in the forestry sector,” said Hanif during the signing of the Mutual Recognition Agreement (MRA) with Plan Vivo Foundation and the Global Carbon Council (GCC) in Jakarta, Tuesday (17/9) as quoted from Antaranews.
So far, the carbon market in Indonesia, particularly the compliance carbon market, has been dominated by the energy sector. However, the forestry sector has no less potential. Therefore, the government is striving to expand the reach of carbon trading through the voluntary carbon market.
The voluntary carbon market allows countries, companies, and individuals to buy and sell carbon credits as a form of contribution to emission reduction. For Indonesia, this is a golden opportunity to strengthen the role of forestry while involving communities in sustainable forest management.
“With this cooperation, we can expand the voluntary carbon market in the country. Moreover, if we talk about international standards that can accelerate biocarbon certification, this will be very beneficial for the community, especially forest farmer groups,” explained Minister Hanif.
One program expected to greatly benefit from this carbon cooperation is social forestry. This program provides communities with access to manage forests sustainably. With the carbon trading mechanism, communities not only keep forests sustainable but also gain additional economic value.
Hanif emphasized that Indonesia has many widespread social forestry areas, but not all are capable of independently preparing and issuing carbon certificates. This is where international cooperation with carbon standard institutions such as Plan Vivo and GCC becomes very important.
“This means that in Indonesia, the implementation of biocarbon can be carried out through social forestry, which is widely spread. But not all are able to manage certification processes on their own. With this international cooperation, the process can be faster and more effective,” he said.
The government has reaffirmed its seriousness in developing the implementation of carbon economic value in Indonesia. By signing the MRA with Plan Vivo and GCC, this step is expected to accelerate the achievement of national emission reduction targets while providing tangible benefits for communities.
In addition, this cooperation is also part of Indonesia’s broader strategy to expand nature-based solutions, recognized as one of the most effective ways to reduce the impacts of climate change.
To ensure carbon trading runs transparently and credibly, technological support is needed to guarantee that every emission reduction is truly measurable. One of the key aspects is measurement, reporting, and verification (MRV), which enables emission calculation and reporting to be carried out efficiently and according to standards.
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With this approach, the implementation of carbon projects can be monitored objectively and data-driven so that the carbon economy truly provides sustainable benefits for both the environment and communities.
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