POLICY
JAKARTA (FORESTHINTS.NEWS) - The threat of an El Niño in Indonesia this year should not only be a serious concern for global supply chains in forestry and palm oil concessions but also for global carbon markets, bearing in mind that the law enforcement actions previously carried out by Indonesia's Ministry of Environment and Forestry also involve several of these concessions, in particular those linked with such markets.
With the increasing capitalization of global carbon markets, the expected onset of El Niño this year will need to be dealt with, most notably by forestry and palm oil concessions engaged with these markets.
Hopefully these concessions will be successfully shielded from the threat of El Niño, given the role they are expected to play in supporting Indonesia achieve its Forestry and Other Land Use (FOLU) Net Sink 2030 climate goals.
However, the failure of forestry and palm oil concessions that are currently engaged with, or in the process of engaging with, global carbon markets to prevent forest and land fires in their concessions caused by El Niño will result in unwanted consequences.
It is of course no easy task for companies to avoid El Niño induced fires in their concessions, with valuable lessons and experiences to be drawn in this regard from previous recent El Niño events in 2015 and 2019.
Carbon governance
The Indonesian government is prioritizing quicker responses and stronger law enforcement actions in dealing with El Niño this year, as recently reported by FORESTHINTS.NEWS (Jan 25). This poses a serious challenge for forestry and palm oil concessions linked with or becoming linked with global carbon markets.
As initially reported by FORESTHINTS.NEWS, Minister Nurbaya has been cautioning since October last year of the threat of a serious El Niño this year along with the substantial impact it could have on Indonesia's ability to implement its FOLU Net Sink 2030 Operational Plan, of which carbon governance is one of the forefront principles.
Indonesia's ongoing efforts to strengthen its carbon governance, especially through its FOLU Net Sink 2030 Operational Plan, will unquestionably be successful if the El Niño threat can be controlled, as consistently underlined by the Minister.
Conversely, an inability to adequately cope with the conditions associated with El Niño will inevitably disrupt Indonesia's carbon governance reinforcement and have a broad impact on global carbon markets.
As such, Minister Nurbaya is constantly focusing on carbon governance practices, in terms of achieving Indonesia’s FOLU Net Sink 2030 targets as well as with regard to global carbon markets.
Emissions limit
The chart below shows Indonesia's targeted level of emissions deriving from the FOLU sector, including from peat fires. It is imperative that this year's El Niño does not cause peat fire emissions to exceed the set limit.
In the event that peat fire emissions end up contributing more than they are projected to do due to El Niño, Indonesia will face difficulties in meeting its FOLU Net Sink 2030 goals, as made clear in the explicit warning delivered by Minister Nurbaya last October.
Peat decomposition, especially in forestry and palm oil concessions, is a major contributor in Indonesia's FOLU sector, with global supply chains greatly dependent on these concessions, as emphasized by Minister Nurbaya and reported by FORESTHINTS.NEWS in mid-July last year.
In light of this, these global supply chains cannot take a hands-off approach when it comes to reaching their carbon neutrality targets if El Niño induced fires happen in concessions with which they are linked.
It is vital that carbon market players are really serious about incorporating the El Niño factor into their core business efforts to ensure that concessions which are engaged with, or in the process of engaging with, global carbon markets do not get adversely affected by peat fires.
It is also of great importance that forestry and palm oil companies linked with global supply chains and carbon markets whose concessions have been repeatedly struck by peat fires ensure that such fires are not repeated yet again as El Niño takes hold this year.
RELATED STORIES
POLICY
JAKARTA (FORESTHINTS.NEWS) - The threat of an El Niño in Indonesia this year should not only be a serious concern for global supply chains in forestry and palm oil concessions but also for global carbon markets, bearing in mind that the law enforcement actions previously carried out by Indonesia's Ministry of Environment and Forestry also involve several of these concessions, in particular those linked with such markets.
With the increasing capitalization of global carbon markets, the expected onset of El Niño this year will need to be dealt with, most notably by forestry and palm oil concessions engaged with these markets.
Hopefully these concessions will be successfully shielded from the threat of El Niño, given the role they are expected to play in supporting Indonesia achieve its Forestry and Other Land Use (FOLU) Net Sink 2030 climate goals.
However, the failure of forestry and palm oil concessions that are currently engaged with, or in the process of engaging with, global carbon markets to prevent forest and land fires in their concessions caused by El Niño will result in unwanted consequences.
It is of course no easy task for companies to avoid El Niño induced fires in their concessions, with valuable lessons and experiences to be drawn in this regard from previous recent El Niño events in 2015 and 2019.
Carbon governance
The Indonesian government is prioritizing quicker responses and stronger law enforcement actions in dealing with El Niño this year, as recently reported by FORESTHINTS.NEWS (Jan 25). This poses a serious challenge for forestry and palm oil concessions linked with or becoming linked with global carbon markets.
As initially reported by FORESTHINTS.NEWS, Minister Nurbaya has been cautioning since October last year of the threat of a serious El Niño this year along with the substantial impact it could have on Indonesia's ability to implement its FOLU Net Sink 2030 Operational Plan, of which carbon governance is one of the forefront principles.
Indonesia's ongoing efforts to strengthen its carbon governance, especially through its FOLU Net Sink 2030 Operational Plan, will unquestionably be successful if the El Niño threat can be controlled, as consistently underlined by the Minister.
Conversely, an inability to adequately cope with the conditions associated with El Niño will inevitably disrupt Indonesia's carbon governance reinforcement and have a broad impact on global carbon markets.
As such, Minister Nurbaya is constantly focusing on carbon governance practices, in terms of achieving Indonesia’s FOLU Net Sink 2030 targets as well as with regard to global carbon markets.
Emissions limit
The chart below shows Indonesia's targeted level of emissions deriving from the FOLU sector, including from peat fires. It is imperative that this year's El Niño does not cause peat fire emissions to exceed the set limit.
In the event that peat fire emissions end up contributing more than they are projected to do due to El Niño, Indonesia will face difficulties in meeting its FOLU Net Sink 2030 goals, as made clear in the explicit warning delivered by Minister Nurbaya last October.
Peat decomposition, especially in forestry and palm oil concessions, is a major contributor in Indonesia's FOLU sector, with global supply chains greatly dependent on these concessions, as emphasized by Minister Nurbaya and reported by FORESTHINTS.NEWS in mid-July last year.
In light of this, these global supply chains cannot take a hands-off approach when it comes to reaching their carbon neutrality targets if El Niño induced fires happen in concessions with which they are linked.
It is vital that carbon market players are really serious about incorporating the El Niño factor into their core business efforts to ensure that concessions which are engaged with, or in the process of engaging with, global carbon markets do not get adversely affected by peat fires.
It is also of great importance that forestry and palm oil companies linked with global supply chains and carbon markets whose concessions have been repeatedly struck by peat fires ensure that such fires are not repeated yet again as El Niño takes hold this year.
RELATED STORIES
