During a meeting on carbon market ecosystem development here on Friday, Director of Forest Utilization Business Development Ilham said the ministry is awaiting the revision of Ministerial Regulation No. 7 of 2023 concerning Carbon Economic Value Governance in the Forestry Sector.
He explained that the revision is expected to serve as the foundation for Standard Operating Procedures (SOPs) for carbon trading in the voluntary carbon market, as part of Indonesia’s broader carbon policy framework.
“We believe an SOP is necessary. Without technical assessment, there is a risk that carbon credits from forest utilization permits (PBPH), social forestry, or conservation areas (KSDAE) could be linked to conflicts with local communities or even fraudulent activities,” Ilham elaborated.
He emphasized the government’s commitment to ensuring that carbon from the forestry sector sold on the global market is of high quality and with integrity.
“Our technical assessments will be strict. We will not approve any project with signs of fraud or potential harm to surrounding communities,” he added.
He noted that these technical considerations, included in the revised regulation, are important to prevent fraud that could harm the state and undermine trust in the integrity of Indonesia’s carbon market.
Furthermore, the government also plans to open forestry sector carbon to the voluntary carbon market, which is currently more stable globally.
This inclusion, Ilham said, will require revisions to Presidential Regulation No. 98 of 2021, which is currently under process.
The regulation covers the Implementation of carbon economic value for achieving Nationally Determined Contribution (NDC) targets and greenhouse gas emission control in national development.
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Translator: Prisca, Kenzu
Editor: Azis Kurmala
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