"There is a misunderstanding. People might think carbon trading means selling all the carbon from our forests, but it is actually about reducing emissions by planting more to increase carbon absorption," she explained in a statement on Saturday.
During a focus group discussion with Commission IV of the House of Representatives in Jakarta on Friday, Nurbaya explained that carbon’s economic value is crucial for upholding the principles outlined in Law Number 16 of 2016, which ratified the Paris Agreement.
Therefore, the focus should be on supply and demand. The Ministry of Environment and Forestry considers carbon not just a commodity but a service for reducing emissions, where CO2 supply comes not only from natural stock for trade but also from carbon reduction practices—not merely from carbon offsets.
Nurbaya stated that carbon pricing aims to meet the climate targets outlined in the Nationally Determined Contribution (NDC) document, which reflects Indonesia's commitment to the global community in reducing emissions.
Carbon services calculated with CO2 must come from high-integrity environments or actions carried out with integrity.
"Therefore, it’s not just any carbon that can be traded, nor is it greenwashing," she said. "Carbon trading requires transparency, accountability, comparability, and consistency."
Nurbaya also pointed out that the economic value of carbon is a constitutional mandate under Article 33 of the 1945 Constitution, as it is derived from natural resources.
Carbon management also includes the rights of businesses to reduce carbon emissions, either through state-mandated permits or voluntarily through community tree planting efforts.
There are also economic rights where the value of carbon could generate state revenue, although the Ministry of Finance has yet to formulate this.
The achievement of these carbon targets also reflects Indonesia's performance and capacity compared to other countries.
"There is no doubt that we can control carbon emissions while continuing to grow the economy," Nurbaya concluded.
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Translator: Prisca Triferna Violleta, Yashinta Difa
Editor: Anton Santoso
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