Heaptalk, Jakarta — Climate change and carbon trading recently become one of Indonesia’s hot topics, but the questions regarding who can be the actor in carbon trading as well as the conditions and standards to enter this exchange still arise.
According to the CEO of Nol Karbon, Pera Malinda Sihite, every party, even a village, can participate in Indonesia’s Carbon Exchange (IDXCarbon). Thus, government institutions and private sectors, as well as societies that live in a particular area with the potential to reduce carbon emissions can participate in this sector.
“So Carbon Exchange is also open for a village. When they have a village forest or customary forest, they can be a carbon player and the funds they obtain can be utilized to develop forest restoration in their areas,” stated Pera during Media Training for Carbon Business and CCUS Potential Outlook.
She added that a village or any party who intend to join the carbon exchange also can collaborate with other parties to assist them in registering their project.
“Any party can participate; the registration name will be based on the forest ownership certificate. If it is a village forest, the village name can be registered as the project’s name, for example, Katingan Project from Katingan Regency,” conveyed Pera.
Meanwhile, from her point of view, the journey to obtain a carbon certificate is challenging as the party needs to consider several complicated steps that require tremendous capital. For this reason, collaboration is one of the keys to seizing this potential.
“FYI, not all projects are eligible. We have to count the cost of conducting registration, visibility studies, and implementation,” stated Pera.
Aspects to consider before initiating a carbon project
To become a carbon player, Pera conveyed that a party at least should perceive two aspects: eligibility and additionality.
In the eligibility concept, the carbon players must consider the project’s potential and the cost to conduct registration, visibility studies, and implementation. Pera added, “If we have 10 hectares, the size is not eligible to enter carbon exchange as the number of carbon credits will be super diminutive compared to the spending. Thus, only those who have thousands of hectares who can join, if less than that, the project will not meet the minimum requirement.”
In addition to eligibility concept, Pera also mentioned the additionality aspect, a condition when the carbon player should be diligent to indicate the companies’ urgency in delivering their fund in a project.
“Companies prefer to deliver their funds to the damaged area, thus the emission reduction can work well in the area,” voiced Pera.
