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Newly Issued Minister of Environment and Forestry Decree
Through the Minister of Environment and Forestry's Decree No. SK. 716/MENLHK/SETJEN/KUM.1/6/2023, the integration of the climate change agenda is mandated in instruments related to the Environment and Forestry sector. This includes approvals, partnerships, and licenses, which must incorporate the Carbon Pricing mechanism and associated obligations from specified regulations. The decree also provides guidance for Forest Utilization Business License holders, outlining requirements based on relevant regulations for forest management and carbon trading. Issued on June 27th, 2023, this decree underscores the sector's commitment to climate action.
Carbon Policy Lab
New Regulation Reveals Carbon Trading Mechanism in the Forestry Sector
Minister of Environment and Forestry Regulation No. 7 of 2023 on Carbon Trading in the Forestry Sector has been issued in Indonesia. This regulation contains policies for conducting carbon trading for companies that aim to control emissions and achieve climate targets through provisions for sustainable forest management and afforestation.
Valuing Social Contribution to Carbon and Conservation Project in Indonesia: Put the Right Price for the Carbon Market
The current carbon market needs to be more inclusive by valuing the social impacts in defining the carbon price. Recognizing and prioritizing social impacts will benefit communities and ensures the carbon market's sustainability and success. Learn why it's important and how to redefine the inclusive carbon price.
Social Return on Investment (SRoI) Ensuring Inclusive Carbon Projects, Fostering Social Impact
Indonesia's carbon market utilization has risen due to the NEK policy. However, current carbon policies and practices have yet. All carbon projects should incorporate Social Return on Investment (SRoI) assessments to prioritize community development and guarantee carbon projects to be more inclusive and community-focused.
Indonesia to Enforce the Implementation of Carbon Pricing in the Power Plant Sub-Sector
Following the issuance of PR 98/2021 on Carbon Pricing, the Indonesian government is enforcing MEMR Reg 16/2022, which regulates the implementation of carbon pricing in the power plant sub-sector. Our legal update provides important information on the regulations and what it means for carbon trading in Indonesia, as domestic emission trading for #PLTU may be carried out afterward.
The Development of Carbon Exchange in Indonesia
The enactment of Law 4/2023 in Indonesia establishes the Financial Services Authority (OJK Indonesia) to regulate carbon trading through carbon exchanges. The OJK's authority extends to granting business licenses to market organizers, and the carbon exchange is expected to commence operation once the carbon tax regulations and mechanisms are issued by the Indonesia Ministry of Finance.
Addini, I., Azizah, S., & Irawan, H. (2023). Carbon Stock Analysis in Mangrove Vegetation on Dompak Island, Riau Islands. Proceedings of the 2nd Maritime Continent Fulcrum International Conference, MaCiFIC 2022, September 28-October 1, 2022, Tanjungpinang, Indonesia. https://doi.org/10.4108/eai.28-9-2022.2328376
Program Pembentukan dan Peningkatan Kapasitas Petani Pesisir Dompak Laut Sebagai Pemberdayaan Masyarakat Pesisir. (2022). Jurnal Pembangunan Manusia, 3(1). https://doi.org/10.7454/jpm.v3i1.1028
Haria, N. G., & Arieta, S. (n.d.). Pengaruh Persepsi Perempuan terhadap Partisipasi Perempuan dalam Konservasi Mangrove Dibimbing oleh Yayasan CarbonEthics di Pulau Dompak, Provinsi Kepulauan Riau, Indonesia.
Arieta, S., Igiasi, T. S., Taufiqurrachman, T., Valentina, A., Casiavera, C., & Niko, N. (2022). AKSELERASI PENGETAHUAN MASYARAKAT DI PULAU DOMPAK TENTANG BAKAU SEBAGAI SUMBER HIDUP. Jurnal Abdi Insani, 9(3), 1037–1047. https://doi.org/10.29303/abdiinsani.v9i3.722