Indonesia's forestry ministry issues new rules on carbon trading


FILE PHOTO: This photo taken on June 20, 2020 shows the Leuser rainforest in Subulussalam, Aceh. Indonesia aims to improve the credibility and governance of carbon trading in the forestry sector and the way the "carbon economy" is deployed. - AFP

JAKARTA: Indonesia's Forestry Ministry has issued a new regulation detailing the procedures of carbon trading using emission offsets generated by the forestry sector, the ministry said in a statement late on Wednesday (April 15).

Here are some details:

* The regulation is aimed at improving the credibility and governance of carbon trading in the forestry sector and the way the "carbon economy" is deployed, the ministry said.

* The regulation calls on the government to introduce a carbon trading road map which includes targets to set aside at least 48.7 million hectares of forest for emission offsets and at least 3.5 million hectares of degraded land for carbon sequestration, the regulation document showed.

* The new regulation expands carbon market participants beyond companies to include community-based organisations, indigenous communities, and carbon ecosystem service managers, among others.

* The new rules also said international carbon trading will be allowed if it is authorised by the government, but if credits are sold abroad, "corresponding adjustments" need to be made to Indonesia's own emission cuts to avoid double counting.

* The regulation took effect April 13. - Reuters

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