The Benefits of Carbon Economic Instruments for Communities, Forests, and the Climate

The Benefits of Carbon Economic Instruments for Communities, Forests, and the Climate

Discover how Indonesia's Carbon Economic Value policy benefits climate goals, protects natural forests, and empowers local communities through sustainable carbon markets.

Discover how Indonesia's Carbon Economic Value policy benefits climate goals, protects natural forests, and empowers local communities through sustainable carbon markets.

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[MadaniNews, Jakarta]  In a limited meeting on July 6, 2020, the Minister of Environment and Forestry announced the government's plan to issue a Carbon Economic Value policy instrument to achieve Indonesia's NDC ( Nationally Determined Contribution ) target in the form of a Presidential Regulation on Carbon Economic Value.

This policy instrument is based on the need for the involvement of all stakeholders, including government, businesses, and communities at the global, national, and local levels, to keep the global average temperature increase below 2 degrees Celsius, aiming for 1.5 degrees Celsius above pre-industrial levels. The policy plan emphasizes community benefits.

To further discuss the economic value of carbon, the Madani Berkelanjutan Foundation, in collaboration with KKI Warsi, the Sustainable District Meeting Circle (LTKL), and the Partnership, held a virtual discussion on August 12, 2020, themed " Carbon Economic Value Instrument Policy Plan: Potential Benefits and Impacts on Communities, Forests, and the Climate. "

During the discussion, Nadia Hadad, Director of Strategic Development at the Madani Berkelanjutan Foundation, revealed that there are four key elements that need to be ensured in regulations regarding the economic value of carbon. These four elements are a rapid transition to a low-carbon economy, actual emissions reductions, the protection of natural forests and biodiversity, and the recognition of communities as subjects, not objects.

The discussion was attended by several speakers, namely, Researcher from the Fiscal Policy Agency (BKF) of the Ministry of Finance, Joko Tri Haryanto, Executive Director of KKI Warsi, Rudy Syaf, and President Director of PT. Rimba Makmur Utama (RMU), Dharsono Hartono. Also present as respondents to the discussion were Representative of the Green Partner Foundation, Dicky Edwin Hindarto, and Representative of the Forest Management Community, Rio Laman Panjang, Bungo Regency, Jamris.

BKF researcher Joko Tri Haryanto stated that the basic principle of the economic value of carbon (NEK) is as an instrument to support the achievement of the National Development Planning (NDC) targets. Joko also stated that opportunities for collaboration among various parties are needed due to the country's limited fiscal capacity. Incentive options for stakeholders who behave positively in supporting climate change commitment targets must also be a special focus.

KK Warsi Executive Director Rudy Syaf emphasized the importance of community involvement in carbon market mechanisms. He stated that such involvement not only provides economic benefits for communities but also contributes to environmental sustainability, particularly for forests.

Meanwhile, Dharsono Hartono, President Director of PT. Rimba Makmur Utama (RMU), shared a business perspective on the economic value of carbon. As a businessman providing environmental services, Dharsono stated that changing the mindset and behavior of both the community and government is a key challenge in running an environmental services business.

Dhasono also mentioned that farmers' habit of burning land is one of the issues he wants to change. Therefore, RMU is promoting education by opening an agroecology school. Human survival depends on nature, and we must place value on it.