RI may annually earn $500m from carbon trade<\/p>\n
Moch. N. Kurniawan, The Jakarta Post, Jakarta<\/p>\n
Indonesia could obtain at least US$500 million from the \"sale\" of
\na reduction in carbon emissions to developed countries under the
\nClean Development Mechanism (CDM), the head of a non-governmental
\norganization says.<\/p>\n
Pelangi director Agus P. Sari said on Tuesday around $50
\nmillion in carbon trading could be obtained from good forest
\nmanagement and $350 million from the clean energy sector.<\/p>\n
\"It would be enough to repay some of our loans from other
\ncountries if necessary,\" he told reporters on the sidelines of a
\nworkshop on CDM.<\/p>\n
CDM is aimed at achieving cost-effective greenhouse gas (GHG)
\nmitigation for industrialized countries and promoting sustainable
\ndevelopment in developing countries.<\/p>\n
In return for investment in a sustainable development project
\nthat cuts or reduces emissions in a developing country, companies
\nwill earn certified emission reductions (CERs) that developed
\ncountries may use to meet Kyoto Protocol commitments.<\/p>\n
Agus said Indonesia could \"sell\" 16 million tons of CER per
\nyear from its forests, while clean energy producers such as
\ngeothermal power plants could sell 125 million tons in carbon
\nemission reduction annually, meaning Indonesia could enjoy a
\nreciprocal arrangement where foreign investors invest in
\nenvironmentally friendly projects here.<\/p>\n
In forestry, Indonesia has the second highest potential to
\nreduce carbon emissions after Brazil. Brazil's forests have the
\ncapacity to reduce 24.6 million tons in carbon emissions per
\nyear.<\/p>\n
At present, one ton of carbon is valued at between US$3 and
\n$5.<\/p>\n
Carbon emission reduction in forestry under the CDM program
\ncould be conducted in the form of aforestation and reforestation
\nprograms.<\/p>\n
Aforestation is a direct activity to change nonforest areas
\ninto forest through seedings and regreening. Reforestation is an
\nactivity to revert former forest areas into forests.<\/p>\n
\"So we can't just maintain existing forests and get money from
\nthe CDM program,\" Agus said.<\/p>\n
However, he said, the country was facing serious challenges to
\npromote CDM in the forestry sector due to rampant illegal
\nlogging, land conversion and forest fires.<\/p>\n
Indonesia loses Rp 30 trillion (US$3.75 billion) per year from
\nillegal logging.<\/p>\n
Agus also said that potential conflict between local people
\nand the local authorities when the latter reverted the current
\nareas into forest would also be a challenge in promoting CDM.<\/p>\n
Institutions that are poorly prepared to promote CDM in the
\ncountry would also pose a hurdle, he said, adding that South
\nAmerican countries had been preparing their institutions to
\npromote CDM.<\/p>\n
Fellow Pelangi researchers Wisnu Rusmantoro, Erdi Abidin and
\nImran Rachman, who conducted a study on the opportunities and
\nchallenges of forestry CDM in Jambi, West Kalimantan and Central
\nSulawesi, concurred.<\/p>\n
Wisnu said most people were uninformed about CDM and the fact
\nthat the most effective way to promote CDM was through
\nsustainable forest management.<\/p>\n
Agus suggested that the government and local people continue
\nto encourage forestry companies to pursue good forestry
\nmanagement in order to take benefit from CDM.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-may-annually-earn-500m-from-carbon-trade-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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