Indonesia begins to tap carbon trading potential

Indonesia begins to tap carbon trading potential

Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan (ANTARA/HO)

We have seven world conservation areas, including Komodo Island and Way Kambas. We are keen to manage these areas to ensure they are well-protected, so they can become the sources of carbon that can be traded
Jakarta (ANTARA) - Indonesia has begun exploring the potential of carbon trading since some 75-80 percent of the global carbon credit is derived from its forests, mangroves, peatlands, seaweed, and coral reefs.

"We do not know the exact figure, probably between US$82 billion and US$100 billion per year. These figures hold huge potential that can be utilized by the government," Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan noted in Jakarta on Tuesday.

To this end, the Environment and Forestry Ministry is currently developing a format that enables Indonesia to sell its carbon credit to boost state revenue.

"We have seven world conservation areas, including Komodo Island and Way Kambas. We are keen to manage these areas to ensure they are well-protected, so they can become the sources of carbon that can be traded," Pandjaitan emphasized.

Related news: RI, Japan sign joint carbon trading agreement

The minister pointed to Indonesia's copious carbon credit to yet be utilized as a "weapon" in global carbon trading. Moreover, a common perception still lingers of Indonesia employing unsustainable plantation practices, especially pertaining to palm oil.

"My children and grandchildren always remind me of the environment. How do I object to my grandchildren's reminder? The policy in Indonesia is always looking to the next generation and beyond. I always say (to several parties) to not dictate upon us matters pertaining to the environment," Pandjaitan affirmed.

Carbon trading is the transaction of verified carbon credits whereby a company can buy greenhouse gas credits when its carbon emissions quota gets completely exhumed. These credits are bought in a government-created carbon market by fossil-fuel-based industries to offset the carbon they emit in surplus of their carbon allowance.

Related news: Gorontalo, Japanese investors to manage forests for carbon trading

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