POLICY
JAKARTA (FORESTHINTS.NEWS) - Indonesia's Environment and Forestry Minister, Professor Siti Nurbaya, announced on February 24th that the country is prepared to offer results-based payments (RBP) to interested buyers for its achievements in reducing emissions from deforestation and forest degradation, as well as enhancing forest stock carbon through REDD+ scheme from 2018 to 2020, resulting in a remarkable reduction of over 577 million tonnes of CO2e.
Minister Nurbaya described how Indonesia's REDD+ performance achievements were not self-reported but came out in a Technical Assessment and Technical Analysis conducted by UNFCCC on the country's BUR (Biennial Update Report) 3 document (Nov 2022).
“The assessment and analysis validated the data and information provided by the Ministry of Environment and Forestry (MoEF) and confirmed its transparency, consistency, completeness, and accuracy, including that of the methodology employed,” she added.
"The potential revenue for our country resulting from payments for the REDD+ scheme's GHG emission reduction achievements from 2018-2020 is significant. We will offer purchases at a competitive price to support our ongoing climate actions. The revenue generated from these transactions will be directed towards the Indonesian Environment Fund (BPDLH)," stated the Minister.
“These performance-based payments are part of our efforts to strengthen the climate finance originating from our own resources. This provides an opportunity for developed countries to purchase at a price that reflects their commitment to enhancing climate finance, particularly for Indonesia," Minister Nurbaya explained.
According to the Minister, Indonesia is not only prioritizing results-based payment schemes but also has in place a robust legal framework for carbon trading, including by arranging voluntary carbon markets (VCMs), both through direct business engagement and stock exchange markets.
"Over the next two years, carbon projects through emissions trading and carbon offsets - as long as they are in alignment with Indonesia's legally-based carbon governance - will gradually but inevitably lead to a boom in our country. In contrast, non-compliant carbon projects will have no place whatsoever in our carbon markets," she warned.
The Minister clarified that Indonesia remains steadfastly committed to carrying out consistent climate actions through its carbon governance, encompassing results-based payments, emissions trading, and carbon offsets, provided these actions continue to contribute to overall global emissions mitigation.
"The undisputed role of Indonesia as a superpower in combating the global climate crisis must be reflected in our contributions towards global emissions mitigation. This includes self-mitigation measures, results-based payments, and carbon trading," she reaffirmed.
No ban on VCMs
Minister Nurbaya pointed out that Indonesia does not prohibit voluntary carbon market (VCM) practices but is striving to ensure that all existing carbon trading activities align and comply with the relevant legal framework.
"Companies involved in carbon trading, including those engaged in the VCM scheme, must register with Indonesia's National Registry System (SRN) and undergo verification and validation to comply with legal requirements," she cautioned.
"As long as VCM schemes operate within the corridor of legality, Indonesia will not ban them. However, illegal and unregulated VCM practices in Indonesia are not acceptable and I will certainly not tolerate them. In fact, law enforcement actions have already been taken against companies engaging in VCM transactions that do not comply with the applicable legal regulations," Minister Nurbaya stated.
The Minister explained that the economic value of carbon is a natural resource, and efforts to regulate carbon trading, including VCM practices, not only contribute to overall global emissions mitigation but also prevent corruption of Indonesia’s economic value of carbon.
"VCM practices should serve to strengthen Indonesia's carbon governance, and any practices that undermine this governance will potentially weaken the environmental integrity of the economic value of carbon in Indonesia. I most definitely do not want this to happen here," she asserted.
The Minister cited the fact that whenever law enforcement actions are taken against carbon projects that transact through a VCM, the companies responsible have to compensate for any state losses incurred, including by having penalties imposed on them.
“Should I allow carbon project transactions under the VCM scheme to cause losses to our state finances? That is obviously a big no," the Minister emphasized.
As reported recently by FORESTHINTS.NEWS (Feb 22), Minister Nurbaya also declared that she will not put up with irresponsible campaigns waged against Indonesia's carbon governance by any carbon market players who are working systematically to erode the country's carbon governance.
RELATED STORIES
POLICY
JAKARTA (FORESTHINTS.NEWS) - Indonesia's Environment and Forestry Minister, Professor Siti Nurbaya, announced on February 24th that the country is prepared to offer results-based payments (RBP) to interested buyers for its achievements in reducing emissions from deforestation and forest degradation, as well as enhancing forest stock carbon through REDD+ scheme from 2018 to 2020, resulting in a remarkable reduction of over 577 million tonnes of CO2e.
Minister Nurbaya described how Indonesia's REDD+ performance achievements were not self-reported but came out in a Technical Assessment and Technical Analysis conducted by UNFCCC on the country's BUR (Biennial Update Report) 3 document (Nov 2022).
“The assessment and analysis validated the data and information provided by the Ministry of Environment and Forestry (MoEF) and confirmed its transparency, consistency, completeness, and accuracy, including that of the methodology employed,” she added.
"The potential revenue for our country resulting from payments for the REDD+ scheme's GHG emission reduction achievements from 2018-2020 is significant. We will offer purchases at a competitive price to support our ongoing climate actions. The revenue generated from these transactions will be directed towards the Indonesian Environment Fund (BPDLH)," stated the Minister.
“These performance-based payments are part of our efforts to strengthen the climate finance originating from our own resources. This provides an opportunity for developed countries to purchase at a price that reflects their commitment to enhancing climate finance, particularly for Indonesia," Minister Nurbaya explained.
According to the Minister, Indonesia is not only prioritizing results-based payment schemes but also has in place a robust legal framework for carbon trading, including by arranging voluntary carbon markets (VCMs), both through direct business engagement and stock exchange markets.
"Over the next two years, carbon projects through emissions trading and carbon offsets - as long as they are in alignment with Indonesia's legally-based carbon governance - will gradually but inevitably lead to a boom in our country. In contrast, non-compliant carbon projects will have no place whatsoever in our carbon markets," she warned.
The Minister clarified that Indonesia remains steadfastly committed to carrying out consistent climate actions through its carbon governance, encompassing results-based payments, emissions trading, and carbon offsets, provided these actions continue to contribute to overall global emissions mitigation.
"The undisputed role of Indonesia as a superpower in combating the global climate crisis must be reflected in our contributions towards global emissions mitigation. This includes self-mitigation measures, results-based payments, and carbon trading," she reaffirmed.
No ban on VCMs
Minister Nurbaya pointed out that Indonesia does not prohibit voluntary carbon market (VCM) practices but is striving to ensure that all existing carbon trading activities align and comply with the relevant legal framework.
"Companies involved in carbon trading, including those engaged in the VCM scheme, must register with Indonesia's National Registry System (SRN) and undergo verification and validation to comply with legal requirements," she cautioned.
"As long as VCM schemes operate within the corridor of legality, Indonesia will not ban them. However, illegal and unregulated VCM practices in Indonesia are not acceptable and I will certainly not tolerate them. In fact, law enforcement actions have already been taken against companies engaging in VCM transactions that do not comply with the applicable legal regulations," Minister Nurbaya stated.
The Minister explained that the economic value of carbon is a natural resource, and efforts to regulate carbon trading, including VCM practices, not only contribute to overall global emissions mitigation but also prevent corruption of Indonesia’s economic value of carbon.
"VCM practices should serve to strengthen Indonesia's carbon governance, and any practices that undermine this governance will potentially weaken the environmental integrity of the economic value of carbon in Indonesia. I most definitely do not want this to happen here," she asserted.
The Minister cited the fact that whenever law enforcement actions are taken against carbon projects that transact through a VCM, the companies responsible have to compensate for any state losses incurred, including by having penalties imposed on them.
“Should I allow carbon project transactions under the VCM scheme to cause losses to our state finances? That is obviously a big no," the Minister emphasized.
As reported recently by FORESTHINTS.NEWS (Feb 22), Minister Nurbaya also declared that she will not put up with irresponsible campaigns waged against Indonesia's carbon governance by any carbon market players who are working systematically to erode the country's carbon governance.
RELATED STORIES
