Biodiversity Credits Open Potential for Private Funding in Conservation
The Ministry of Environment/Environmental Management Agency (KLH/BPLH) is maturing the Biodiversity Credit instrument to unlock private funding potential for nature conservation and restoration efforts in Indonesia.
The Minister of Environment/Head of BPLH, Moh Jumhur Hidayat, stated that the development of this instrument is a strategic step towards building credible sustainable financing while protecting Indonesia’s biodiversity wealth. “Indonesia believes that the development of biodiversity credits must be built upon three main principles: scientific integrity, social inclusion, and transparent governance,” said Jumhur on Wednesday (16/9).
The development of biodiversity credits is viewed as an economic and policy instrument to translate Indonesia’s richness in ecosystems, species, and genetic resources into broader benefits for society. KLH/BPLH is encouraging the private sector to increase its contribution through green investments to support community-based conservation.
The government emphasises that the instrument must have a strong policy foundation, clear operational guidelines, and regulations that align with national ecological, socio-economic, cultural, and institutional conditions.
In its implementation, local and indigenous communities are positioned as vital components of the scheme. The government noted that these communities serve as guardians of nature and holders of valuable traditional knowledge.
The economic benefits of nature preservation, the government continued, must be shared equitably as a form of recognition for those protecting the environment.
Co-Chair of the International Advisory Panel on Biodiversity Credit (IAPB), Dame Amelia Fawcett, stated that Indonesia possesses great potential in shaping a biodiversity credit market that can be developed on a global scale. “Indonesia plays a crucial role in shaping a high-integrity biodiversity credit market that can be scaled up to a global level,” said Amelia.
According to her, a market that is properly designed and regulated, and supported by strong incentives for the private sector, can mobilise funding for conservation and restoration. This funding is also seen as capable of supporting local livelihoods and strengthening the green economy. This policy forum is part of Indonesia’s efforts to prepare a national biodiversity credit framework while strengthening global collaboration in achieving the Kunming-Montreal Global Biodiversity Framework.