- The Ministry of Environment and Forestry (“Ministry”) is currently drawing up a legal framework for the development of carbon trading. However, the form of said legal framework has yet to be decided and may ultimately take the form of a Ministerial Regulation, Government Regulation or Presidential Regulation.
- Wahyu Marjaka, Director for Climate Change Mobilization at the Ministry stated recently that funding has been an issue in terms of the formulation of carbon trading policies. However, the Ministry has already accommodated a greater amount of infrastructure financing in a bid to close the funding gap.
- From an economic perspective, Astri Arini Waluyo from Kemitraan has reported that the volume of greenhouse gas emissions produced by Indonesia was in decline for the period until 2017 according to official figures, although this reduction has yet to reach the 29% target which has been set as a Nationally Determined Contribution (“NDC”).
- In addition, Mrs. Waluyo has also been pushing the government to increase the participation of private parties through Market-Based Instruments (“IBP”) in order to mobilize financing and boost green investment. IBP will work as incentives for parties to reduce their greenhouse-gas emissions, while polluters will ultimately be required to pay compensation.
- For more on this story, see Hukumonline: “Pemerintah Susun Kebijakan Perdagangan Karbon”.
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