01/12/2021
DIGITALMANGROVE.ID participated in the PRESENTING THE FUTURE OF CARBON MARKET INDONESIA event. This webinar provides a lot of information related to the latest regulations, policies, stock exchange, the 2023 Carbon Border Adjustment (CBA), Non-Trade Barrier (NTA) issue, Indonesia First concept, and national and international carbon credit standardization (SNI).
Indonesia still needs to figure out its position either as Net Exporter or Net Importer Carbon offset. Both must be exercised multiparty to develop the policies in trajectory for the next 20-30 years ahead. The issuance of a presidential regulation on the economic value of carbon/carbon pricing, using market-based instruments, namely trading instruments, and non-trading instruments.
Trading instruments consist of cap and trade and offsetting mechanisms, while non-trading instruments include a carbon tax. The cap and trade trading instrument, also known as mandatory, is an instrument in which each country or company tries to reduce its greenhouse gas emissions according to the specified upper limit. Meanwhile, voluntary trading instruments are instruments where a country, company, or individual wants to reduce emissions according to the upper limit specified, but does not need official and legally binding requirements. Meanwhile, the offsetting mechanism is an instrument in which the state, company, or individual who has a land consensus and accredited carbon credit (Gold Standard, Verra, etc.), sells its carbon credit either through the stock exchange, mandatory or voluntary carbon market. The implementation of the carbon tax will make Indonesia equal with developed countries that have implemented carbon tax policies, such as the UK, Japan, and Singapore.
The issues that must be resolved by DIGITALMANGROVE.ID is obtaining consensus permits for coastal areas for the development of mangrove conservation, registering carbon credit projects with accredited institutions (Verra), starting an offline conservation project by involving local communities as well as ensuring that carbon offsets have the right Key Performance Index to measure their impact on the welfare of communities around the area.
For further information, can be watched through this link: https://youtu.be/W1kdyv78Myg.
Find out more about our initiatives related to mangrove conservation on our website: www.digitalmangrove.id