JakartaPost-Nov 8, 2023
The recent launch of Indonesia’s carbon exchange could drive the business of carbon credit certification as firms and organizations seek to demonstrate their sustainability credentials, but experts note that the regulatory framework for this has yet to be completed. Purchasing carbon credits allows companies to offset their emissions, while the sale of such credits can generate revenue to reward sustainable action. In either case, the transparency, legality and effectiveness of projects need to be proven through certificates issued by independent parties. Carbon certification is still a novel concept in Indonesia, but businesses are beginning to grow aware of its market potential. Rizaldy Yudhista, project lead at the Forest Carbon consulting firm, said the carbon credit certification industry in Indonesia was still shaping up, and carbon credit calculation methodologies used elsewhere were not necessarily applicable in Indonesia at this time. To begin with, the government needed to approve any methodology before it could be used in the field, he told The Jakarta Post on Oct. 28. However, the National Registry System (SRN), the institution in charge of carbon credit certification, needed to be refined to properly evaluate the carbon footprint of logging concessions and bring it in line with international standards as defined in the REDD+ Methodology Framework (REDD+MF). The framework was used to estimate emission reductions through afforestation, reforestation and revegetation (ARR), and wetlands restoration and conservation (WRC) efforts, Rizaldi explained. There are two types of market worldwide: The mandatory market and the voluntary market. The former makes carbon credit purchases mandatory for certain businesses, while the latter allows them to participate in carbon trading if they so wish. In Indonesia, trading activity currently is voluntary, but in the future, companies exceeding a certain emissions cap will be obliged to purchase carbon credits to make up the difference. Read more at: https://www.thejakartapost.com/academia/2021/06/07/this-world-oceans-day-a-moment-to-celebrate-the-cause-of-indonesian-fishers-.html.
