Government acts on Kyoto Protocol
Government acts on Kyoto Protocol
Muninggar Sri Saraswati, The Jakarta Post, Jakarta
The government is moving to implement the Kyoto Protocol by
setting up a commission by October in charge of approving carbon
emission swap agreements -- a unique program between rich and
poor countries stipulated in the protocol to reduce worldwide
carbon emissions.
Deputy State Minister for the Environment Sudariyono said the
body, called the National Commission for Clean Development, would
consist of representatives from several state institutions such
as the Ministry of the Environment, the Ministry of Energy and
Mineral Resources, the Ministry of Forestry and the Ministry of
Trade and Industry.
"Companies or groups planning to 'sell' carbon emissions must
report their projects to the commission to get approval.
"If they are approved, the commission will hand it over to the
Designated World Authority for authorization," he told reporters
on the sidelines of a national seminar on the Kyoto Protocol
here.
Under the Kyoto Protocol, the World Designated Authority is in
charge of bringing together parties involved in carbon emission
trading.
"Apart from the establishment of the commission, we must still
revise a number of regulations and policies, which are not
favorable to the reduction of Greenhouse Gas (GHG) emissions,"
Sudarijono said.
The Kyoto protocol regulates three mechanisms for countries to
work together to reduce GHG levels. One of them, which applies to
Indonesia as a developing country, is a clean development
mechanism (CDM) between advanced and developing countries.
The CDM is a financing scheme where advanced countries invest
in environmental projects in developing countries to reduce GHG
levels, because most of the developed countries are unable to
reduce them further in their own countries.
Sudarijono estimated that Indonesia could "sell" some 125
million tons of carbon from the energy sector and another 125
million tons from forestry.
Agus P. Sari, the director of the Pelangi Foundation, said
that two companies were ready to seek carbon emission credits
under the Kyoto Protocol.
They are giant cement producer PT Indocement, which is
expected to sell some 20 million tons of carbon, and U.S.-owned
Amoseas Indonesia Inc, which plans to invest US$100 million in a
third geothermal power plant on the Darajat volcano in West Java.
"We do expect small-scale groups and businesses to also seek
carbon emission trade," he said.
Josef Leitmann of the World Bank, Helmut Krist of the
Germany's GZT and Tohmei Takegawa of the Japan's NEDO, have also
offered to support Indonesia to enforce the protocol soon.
"We've provided some $450 million to finance the CDM projects.
And Indonesia could get more money from it," Leitmann told
reporters during a press conference.
Takegawa added that many Japanese companies are ready to buy
carbon emissions from Indonesia.
A reduction of one ton of carbon dioxide can be bought for
four or five U.S. dollars.
But Sudarijono said that it would still be a long time before
the Kyoto Protocol could go into effect as it required the
commitment of 55 countries, which cover some 44.5 percent of
carbon emissions.
So far, the United States has been reluctant to ratify the
protocol as it would have a big impact on its economy. Many
countries now are putting their hopes on Russia, which has shown
a willingness to ratify the treaty.
Only developed countries are required to reduce or limit their
GHG emissions to their 1990 levels. But if they cannot do so in
their home countries, they are allowed to purchase reduced GHG
emissions from developing countries that have ratified the
protocol, to meet their obligation.
Muninggar Sri Saraswati, The Jakarta Post, Jakarta
The government is moving to implement the Kyoto Protocol by
setting up a commission by October in charge of approving carbon
emission swap agreements -- a unique program between rich and
poor countries stipulated in the protocol to reduce worldwide
carbon emissions.
Deputy State Minister for the Environment Sudariyono said the
body, called the National Commission for Clean Development, would
consist of representatives from several state institutions such
as the Ministry of the Environment, the Ministry of Energy and
Mineral Resources, the Ministry of Forestry and the Ministry of
Trade and Industry.
"Companies or groups planning to 'sell' carbon emissions must
report their projects to the commission to get approval.
"If they are approved, the commission will hand it over to the
Designated World Authority for authorization," he told reporters
on the sidelines of a national seminar on the Kyoto Protocol
here.
Under the Kyoto Protocol, the World Designated Authority is in
charge of bringing together parties involved in carbon emission
trading.
"Apart from the establishment of the commission, we must still
revise a number of regulations and policies, which are not
favorable to the reduction of Greenhouse Gas (GHG) emissions,"
Sudarijono said.
The Kyoto protocol regulates three mechanisms for countries to
work together to reduce GHG levels. One of them, which applies to
Indonesia as a developing country, is a clean development
mechanism (CDM) between advanced and developing countries.
The CDM is a financing scheme where advanced countries invest
in environmental projects in developing countries to reduce GHG
levels, because most of the developed countries are unable to
reduce them further in their own countries.
Sudarijono estimated that Indonesia could "sell" some 125
million tons of carbon from the energy sector and another 125
million tons from forestry.
Agus P. Sari, the director of the Pelangi Foundation, said
that two companies were ready to seek carbon emission credits
under the Kyoto Protocol.
They are giant cement producer PT Indocement, which is
expected to sell some 20 million tons of carbon, and U.S.-owned
Amoseas Indonesia Inc, which plans to invest US$100 million in a
third geothermal power plant on the Darajat volcano in West Java.
"We do expect small-scale groups and businesses to also seek
carbon emission trade," he said.
Josef Leitmann of the World Bank, Helmut Krist of the
Germany's GZT and Tohmei Takegawa of the Japan's NEDO, have also
offered to support Indonesia to enforce the protocol soon.
"We've provided some $450 million to finance the CDM projects.
And Indonesia could get more money from it," Leitmann told
reporters during a press conference.
Takegawa added that many Japanese companies are ready to buy
carbon emissions from Indonesia.
A reduction of one ton of carbon dioxide can be bought for
four or five U.S. dollars.
But Sudarijono said that it would still be a long time before
the Kyoto Protocol could go into effect as it required the
commitment of 55 countries, which cover some 44.5 percent of
carbon emissions.
So far, the United States has been reluctant to ratify the
protocol as it would have a big impact on its economy. Many
countries now are putting their hopes on Russia, which has shown
a willingness to ratify the treaty.
Only developed countries are required to reduce or limit their
GHG emissions to their 1990 levels. But if they cannot do so in
their home countries, they are allowed to purchase reduced GHG
emissions from developing countries that have ratified the
protocol, to meet their obligation.