Antara reports that Indonesia is planning to launch a carbon offset trading system based on forestry soon.
State news agency Antara reported that Indonesia is planning to sell carbon offsets soon from its forest sector, as authorities work towards recognising international standards.
The Southeast Asian nation stopped the cross-border carbon trading in late 2021. It wanted to meet its own carbon reduction goals as it set up broad rules for carbon trading.
In 2023, the government established a domestic carbon market. In January, it began selling carbon credits to foreign buyers. However, all certificates were based on carbon reductions from projects.
According to Thursday's Antara, Forestry Minister Raja Juli Antoni said that the trade of carbon offsets in the forestry sector will be launched soon by private companies.
The ministry estimates that carbon transactions in this sector could reach 3.2 trillion Rupiah ($200 million) per year by 2025. It also predicts transactions between 97.9 to 258.7 trillion Rupiah annually by 2034.
According to the ministry, by May, it is also the government's goal to finish mutual recognition agreements in accordance with international standards, such as Verra Gold Standard, Plan Vivo and Gold Standard.
According to an industry association that has been advocating the recognition of international standards, some companies offered carbon offsets based on Indonesian nature projects before the 2021 rule. However, they were told to stop offering them and to adopt a Jakarta-set standard.
"We must acknowledge that what we sell is not visible. The process, actors and certificates all need to be transparent and accepted by the markets. We have to admit that Indonesia's certificate, whether we like it or dislike it, is not very clear," Riza Suarga said at a February hearing in the parliamentary.
Indonesia has set itself a goal to achieve net zero greenhouse gas emissions by 2060, or earlier. However, President Prabowo Subito told the G20 Forum last year that he is optimistic about the nation's ability to meet the target prior 2050.
(source: Reuters)
