Forestry Minister: Communities Can Enjoy Benefits of Carbon Trading
Jakarta (ANTARA) - Forestry Minister Raja Juli Antoni has said that communities, through social forestry and customary forest schemes, have the opportunity to reap economic benefits from carbon trading.
“Carbon trading is not just for the elite, not just for those who have long been wealthy, but also for those at the very bottom,” said Raja Juli at the launch of the Carbon Unit Registry System (SRUK) in Jakarta on Thursday.
He noted that approximately 8.3 million hectares of social forestry areas and 1.4 million hectares of customary forests have the potential to enjoy benefits from the future development of carbon trading.
According to Raja Juli, the Ministry of Forestry has issued approvals for three Forest Utilisation Business Permits (PBPH) and one social forestry scheme to participate in carbon trading.
“I have issued permits for four PBPH that can begin trading, three concession PBPH and one social forestry scheme,” he stated.
Deputy Forestry Minister Rohmat Marzuki mentioned that these approvals open up space for the voluntary carbon market.
“The approval of three PBPH sustainable forest management units and one social forestry scheme opens up space for the voluntary carbon market. So the scheme is voluntary,” said Rohmat.
He explained that the one social forestry scheme, a Village Forest, covers an area of 224,000 hectares with a total traded carbon volume of around 31.7 million tonnes of carbon dioxide equivalent (CO2e).
The transaction value from this carbon trading is estimated to reach Rp5 trillion, with non-tax state revenue (PNBP) estimated at around Rp500 billion.
Rohmat said carbon trading is expected to provide space not only for the private sector or investors but also for forest farmer groups and indigenous communities.
“We encourage this so that it is not only owned by the private sector or investors, but also that carbon trading will provide space for forest farmer groups and indigenous communities,” he said.
Meanwhile, Coordinating Minister for Food Zulkifli Hasan said that carbon trading in the forestry sector has commenced following the issuance of technical regulations.
“In Forestry, they are already selling. There are already four. So it is no longer just an announcement or a launch, but four are already selling,” said Zulhas.
The SRUK was launched by the government as a national registry to record carbon units transparently, accountably, and traceably to support the implementation of national carbon trading.