Govt launches emission reductions commission

Tb. Arie Rukmantara, The Jakarta Post, Jakarta

The government launched on Thursday the National Commission on the Clean Development Mechanism (CDM), a new national authority that will promote projects to help reduce the nation's air pollution and its contribution to the world's greenhouse gasses.

The commission will validate private companies that are interested in selling their reduction emission programs to developed countries. These countries are obliged to reduce their greenhouse gas emissions to 5.2 percent of the world's total emissions from 2008 to 2018 under the Kyoto Protocol. If approved, the firms will receive Certified Emission Reduction credits (CER).

"The protocol obliges developed countries to reduce their gas emissions, but since most of them cannot afford to do it themselves, they initiate CDM projects. Under the projects they will compensate companies in developing countries that manage to reduce their emissions," commission head and ministry of environment official Masnellyarti Hilman said.

Each ton of carbon dioxide reduction will be valued at between US$1.50 and $5.50.

"The amount of emission reduction will depend on how the Indonesian companies negotiate with businesses in the developed countries," said Masnellyarti, who is also .

She added that four applications had already been submitted to the commission, including two from private cement producer PT Indocement.

Altogether, their projects are estimated to reduce 6 million tons of carbon dioxide.

State Minister for the Environment Rachmat Witoelar said the commission was a proof of Indonesia's commitment to the Kyoto Protocol, which the House of Representatives ratified last year.

"Hopefully, we can promote the commission to national firms so that they can raise money and develop environment-friendly businesses," he said.

The ministry has estimated that between 2008 and 2012, the country had the potential to reduce carbon dioxide emissions from 300 million to 125 million tons.

"Imagine how much a company could earn if one ton of emission reduction is worth $5. It's good for the businesses, our environment and the stability of the world's climate," he said.

Denmark, Japan and Canada have expressed interest in buying emission reduction projects from Indonesia.