“There are significant potentials and opportunities that can be tapped through the VCM, ranging from climate financing to innovation and the development of green technologies,” he expounded during a FOLU Talks webinar held by the Ministry of Forestry in Jakarta on Wednesday.
He noted that VCM can provide access to innovative funding sources for climate mitigation and adaptation projects.
“It can diversify income sources for landowners or forest managers, generating new revenue through the preservation and restoration of ecosystems,” he added.
He further explained that VCM can accelerate climate action by allowing companies and individuals to offset their emissions, thereby encouraging faster adoption of low-carbon technologies, sustainable practices, and forest conservation.
Additionally, VCM can empower local communities and Indigenous peoples by providing direct economic benefits through carbon benefit sharing and land management rights.
It is also seen as a means to enhance sustainability reputations among consumers, investors, and stakeholders, while helping companies meet internal sustainability targets.
“Moreover, VCM can drive investments in innovative emission reduction solutions, promote technology transfer, training, and capacity building, particularly for host countries,” Marjaka said.
Despite Indonesia’s vast potential in the VCM sector, there is a need to exercise caution to manage its associated risks in terms of environmental integrity, social issues, governance, and the quality of carbon credits, he added.
“Balanced development of the VCM includes strengthening credit integrity and quality, robust governance, regulatory and policy frameworks, and market development,” he continued.
Echoing this view, Andrew Sunarko, a representative of the Indonesian Forest Concessionaires Association (APHI), said that sustainable forest management (SFM) must be optimized alongside the VCM.
“The VCM can provide essential funding and accountability, but only if carbon credit creation and transactions are made investable and streamlined,” he explained.
“When implemented properly, SFM can unlock billions of dollars in climate finance, protect biodiversity, and support rural livelihoods,” he added.
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Translator: Primayanti
Editor: Azis Kurmala
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