POLICY
JAKARTA (FORESTHINTS.NEWS) - The Indonesian Environment and Forestry Ministry says that it is currently undertaking new arrangement and preparatory efforts for strengthened infrastructure and mechanisms regarding data collection, measurements, verifications, registrations and modalities for providing emission reduction incentives to various parties, including those in the forestry business sector.
With regard to forestry concessions linked to ecosystem restoration and carbon sequestration/storage, the ministry sent a circular letter (May 11) to the forestry companies concerned containing five significant orders.
The letter, signed by the Ministry's Secretary General Bambang Hendroyono on behalf of Minister Siti Nurbaya, confirms that, following the enactment of the job creation law and the issuance of its implementing government regulations, the ministry is preparing a regulation as part of efforts to create new arrangements related to carbon sequestration and storage activities in forestry concessions.
“The crux of the letter is that a new carbon arrangement structuring process is in progress, especially in the forestry sector, aimed at the continued strengthening of governing and rules-based procedures. This is our minister's message,” Hendroyono told FORESTHINTS.NEWS in writing (Jun 9).
“The compliance of forestry companies with the circular will of course be monitored to ensure that leakages do not occur in this new arrangement phase. As such, forestry companies should prioritize compliance with the circular,” he added.
Minister Nurbaya has frequently taken the opportunity to emphasize the added value of Indonesia's forestry concessions which, on top of serving as production landscapes, host numerous flagship species such as Sumatran orangutans, tigers, and elephants along with Bornean orangutans.
In fact, one of the remaining habitats of the Sumatran tiger lies in four ecosystem restoration concessions (delineated in yellow), spanning more than 130 thousand hectares, or nearly 1.8 times the size of Singapore, in the central block of Sumatra's Riau Kampar Peninsula landscape, as shown by the Google Earth images below. These concessions are controlled by APRIL, one of the world's largest pulp and paper producers.
Five orders
The first order laid out in the circular letter is to ensure that forestry companies do not carry out new activities or make new agreements related to carbon trading, either through private-to-private mechanisms or with international institutions.
“It is essential that forestry companies comply with this given that it forms part of the new legal arrangement process,” the secretary general cautioned.
The second order of the circular letter is to prohibit forestry companies from accepting various offers of funding (credit) based on emission reduction performance.
Meanwhile, for transactions that were underway before the job creation law and its implementing government regulations were in place, it is requested to report the activities of these transactions, as well as those that are ongoing and planned in writing, accompanied by contract documents with third parties and carbon transaction values, as well as to submit other relevant documents.
The letter also requires that all ongoing transactions are registered with the national registry system on climate change.
The third and fourth orders as described above, according to Hendroyono who is also the ministry's acting director general of sustainable production forest management, are part of the data collection process which includes legally-based reporting and registration in the new compliance corridor for carbon arrangements in the forestry sector.
Finally, the circular letter requires that forestry companies take preparatory steps in order to adjust to the new regulation on carbon trading, including by consulting with the ministry, until a presidential regulation on the economic value of carbon is issued.
RELATED STORIES
POLICY
JAKARTA (FORESTHINTS.NEWS) - The Indonesian Environment and Forestry Ministry says that it is currently undertaking new arrangement and preparatory efforts for strengthened infrastructure and mechanisms regarding data collection, measurements, verifications, registrations and modalities for providing emission reduction incentives to various parties, including those in the forestry business sector.
With regard to forestry concessions linked to ecosystem restoration and carbon sequestration/storage, the ministry sent a circular letter (May 11) to the forestry companies concerned containing five significant orders.
The letter, signed by the Ministry's Secretary General Bambang Hendroyono on behalf of Minister Siti Nurbaya, confirms that, following the enactment of the job creation law and the issuance of its implementing government regulations, the ministry is preparing a regulation as part of efforts to create new arrangements related to carbon sequestration and storage activities in forestry concessions.
“The crux of the letter is that a new carbon arrangement structuring process is in progress, especially in the forestry sector, aimed at the continued strengthening of governing and rules-based procedures. This is our minister's message,” Hendroyono told FORESTHINTS.NEWS in writing (Jun 9).
“The compliance of forestry companies with the circular will of course be monitored to ensure that leakages do not occur in this new arrangement phase. As such, forestry companies should prioritize compliance with the circular,” he added.
Minister Nurbaya has frequently taken the opportunity to emphasize the added value of Indonesia's forestry concessions which, on top of serving as production landscapes, host numerous flagship species such as Sumatran orangutans, tigers, and elephants along with Bornean orangutans.
In fact, one of the remaining habitats of the Sumatran tiger lies in four ecosystem restoration concessions (delineated in yellow), spanning more than 130 thousand hectares, or nearly 1.8 times the size of Singapore, in the central block of Sumatra's Riau Kampar Peninsula landscape, as shown by the Google Earth images below. These concessions are controlled by APRIL, one of the world's largest pulp and paper producers.
Five orders
The first order laid out in the circular letter is to ensure that forestry companies do not carry out new activities or make new agreements related to carbon trading, either through private-to-private mechanisms or with international institutions.
“It is essential that forestry companies comply with this given that it forms part of the new legal arrangement process,” the secretary general cautioned.
The second order of the circular letter is to prohibit forestry companies from accepting various offers of funding (credit) based on emission reduction performance.
Meanwhile, for transactions that were underway before the job creation law and its implementing government regulations were in place, it is requested to report the activities of these transactions, as well as those that are ongoing and planned in writing, accompanied by contract documents with third parties and carbon transaction values, as well as to submit other relevant documents.
The letter also requires that all ongoing transactions are registered with the national registry system on climate change.
The third and fourth orders as described above, according to Hendroyono who is also the ministry's acting director general of sustainable production forest management, are part of the data collection process which includes legally-based reporting and registration in the new compliance corridor for carbon arrangements in the forestry sector.
Finally, the circular letter requires that forestry companies take preparatory steps in order to adjust to the new regulation on carbon trading, including by consulting with the ministry, until a presidential regulation on the economic value of carbon is issued.
RELATED STORIES
|.ABOUT US. |
SATELLITE MONITORING. |
CYBER MEDIA GUIDELINES
© 2016 - 2021
ALL RIGHTS RESERVED
