Indonesia and Japan to Strengthen Carbon Trading Cooperation

Indonesia and Japan are set to sign a bilateral agreement promoting carbon trading by the end of September. This move aligns their emission-reduction certification schemes, facilitating private and public sector involvement.

Vice Minister for Environment and Forestry Alue Dohong highlighted potential projects, including Sumitomo Forestry’s peatland restoration in Central Kalimantan. He emphasized that carbon trading is crucial for Indonesia’s goal of carbon neutrality by 2060, requiring support from developed nations.

The agreement aims to showcase Indonesia’s progress at COP29 in Azerbaijan, demonstrating the feasibility of Article 6 of the Paris Agreement. Dohong expressed hope that other countries, like South Korea, Singapore, and Malaysia, will follow suit.

Indonesia is preparing its second Nationally Determined Contributions (NDCs) for 2035, expanding beyond forestry and energy to include marine sectors like mangroves and coral reefs. This reflects a broader strategy to capture and store atmospheric carbon dioxide.

Key Terms:

• Carbon Trading: The buying and selling of carbon credits, which represent the right to emit a certain amount of carbon dioxide.
• Joint Crediting Mechanism (JCM): A Japanese system that promotes international cooperation for greenhouse gas emission reduction.
• SPEI: Indonesia’s system for certifying emission reductions.
• Carbon Neutrality: Achieving a balance between emitting carbon and absorbing carbon from the atmosphere.
• NDCs (Nationally Determined Contributions): Commitments made by countries to reduce greenhouse gas emissions as part of the Paris Agreement.