Climate activists urge Indonesia to ensure that the global carbon market does not undermine genuine greenhouse gas emission reduction efforts ahead of the 28th United Nations Climate Change Conference (COP28) in Dubai.
Leonard Simanjuntak, the manager of Greenpeace Indonesia, recently warned that the country needs to be cautious in establishing a carbon market to prevent carbon credits from becoming a greenwashing tool for companies to avoid emissions reduction.
One carbon market mechanism allows companies to offset their emissions by purchasing carbon credits from other companies engaged in emission reduction or carbon sequestration projects. However, this mechanism has been criticized for its unfairness, as companies can buy carbon credits without reducing their own emissions.
Therefore, Leonard emphasizes the need for Indonesia to strengthen monitoring mechanisms to ensure that the benefits of emission reduction incentives are genuinely more significant than carbon credit trading.
Prior to the climate summit in Dubai, Indonesia has two issues to address.
Firstly, it is about assisting countries most vulnerable to the impacts of the climate crisis, such as small island nations in the Pacific. These countries face challenges similar to Indonesia, like rising sea levels, which is threatening coastal areas.
Secondly, it is about urging developed countries to phase out fossil fuels and provide financial aid to recover from climate disasters. Some countries still prioritize fossil fuels, like the United Arab Emirates, while some developed nations are unwilling to contribute funds, such as the United States.
Nadia Hadad, the executive director of the Madani Foundation environmental organization, stated that as a country with the third-largest area of tropical forests in the world, Indonesia holds negotiating power. These forests are one of the most crucial carbon sinks globally. Carbon sink refers to anything, natural or artificial, that absorbs and stores more carbon from the atmosphere than it releases.
Agus Justianto, the director general of sustainable forest management at the Indonesian Ministry of Environment and Forestry, expressed that the energy transition and carbon trading will be the focal points on the agenda of the Indonesian delegation. He hopes to reach an agreement on carbon trading to establish clear regulations for the international carbon market.
