Indonesia pushes carbon economic value to achieve NDC target

JAKARTA: Indonesia: The Indonesian government continues to encourage the role of multi-stakeholders to achieve the Nationally Determined Contribution (NDC) target through implementing carbon economic value, according to the country’s Environment and Forestry minister Siti Nurbaya Bakar today (January 23), reported the Antara news agency.

“Several initial steps have been carried out with the existence of a carbon exchange, which has produced quality carbon units,” she noted in Jakarta.

She said that a total of 494,254 tons of carbon dioxide equivalent (CO2e) have been produced from the carbon exchange, with a transaction value reaching Rp30.90 billion (around US$2 million) obtained from transactions by 26 service users.

Bakar affirmed that her ministry continues to observe carbon trading transactions through the carbon exchange and study transaction actors involved in the performance-based payment scheme of the carbon economic value mechanism.

She noted that during the period from 2014 to 2016, Indonesia had received performance-based payments from the Reducing Emissions from Deforestation and Forest Degradation (REDD+) program from the Green Climate Fund, with a nominal value of US$103.8 million (RM491 million).

The performance-based payment is aimed for emission reduction of 20.25 million tons of CO2e that has been achieved by Indonesia, she stated.

In addition, Indonesia received a results-based contribution from the Norwegian government amounting to US$156 million (RM737 million) for emissions reduction of 31.2 million CO2e.

During the periods 2016-2017 and 2018-2020, Indonesia also received US$100 million (RM473 million) from the Forest Carbon Partnership Facility (FCPF) for its performance in reducing 22 million tons of CO2e and US$70 million (RM331 million) from Bio-CF for 14 million tons of CO2e.

“The results-based payment scheme and performance-based contributions have currently reached no less than US$384.8 million (RM1.8 billion) until this month and will reach US$454.8 million (RM2.1 billion) next year,” Bakar remarked.

She stated that this figure does not include the records of other contributions to the Environmental Fund Management Agency (BPDLH) through the contribution agenda.

“All results-based payments were received and administered by BPDLH,” she remarked.

She added that Indonesia currently has four regulations to control greenhouse gas emissions.

These regulations cover the carbon economic value implementation to help Indonesia achieve NDC targets, control greenhouse gas emissions, and accelerate the pace of sustainable national development.

Source: New Straits Times


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