In the realm of climate action, every initiative counts. Recently, I had the privilege of representing Fairatmos at a groundbreaking event organized by Ditjen PPI alongside BPDLH and UNDP, shedding light on the significant strides being made in Indonesia's climate adaptation and mitigation efforts through the SRN (Sistem Registri Nasional) and SPEI (Sertifikat Pengurangan Emisi GRK Indonesia) Scheme. Here's a detailed exploration of the insights gleaned from this transformative gathering:
SPE production reached north of 1 million units – Within the SRN carbon registry, a staggering 1,792,322 SPE units have been issued, with 8,715 units already retired. Each SPE unit represents a ton of CO2 equivalent, underscoring the tangible impact of these efforts on carbon reduction.
Carbon Exchange shows traction and optimism for carbon trading in Indonesia – Notably, 98.49% of carbon units in the SRN have found their way onto the Carbon Exchange, with listed companies and subsidiaries driving a substantial 88% of trading volume. This robust participation underscores the growing momentum and interest in carbon trading within Indonesia.
Domestic Carbon Trading mechanism is established, and international trading schemes is underway – While current carbon trading primarily occurs within domestic transactions registered in IDX Carbon, the Ministry of Environment and Forestry (MoEF) is actively working on procedures for global carbon trading, promising broader horizons for international collaboration. MoEF's endeavors towards establishing global carbon trading procedures signify Indonesia's commitment to engaging in the broader climate action landscape, fostering cross-border partnerships to tackle climate challenges collectively.
Additionality and co-benefits are key features in Mitigation Actions – Mitigation efforts must demonstrate additionality, diverging from business-as-usual activities to qualify. Compliance with relevant regulations, such as Presidential Regulation Number 98/2021 and MoEF Regulation Number 21/2022, is imperative. Mitigation actions must align with SDGs, positively impacting at least one SDG indicator. This emphasis on sustainable development integration underscores Indonesia's holistic approach towards climate action.
Navigating Regulatory Frameworks – Understanding the intricate relationship between the SPEI Scheme and pertinent regulations, including OJK Regulation 14/2023 and MoEF Regulation Number 07/2023, is paramount for business actors and project developers.
It's crucial to recognize that SPE units serve a dual purpose beyond carbon trading. They also validate carbon neutrality efforts, earning appreciation certificates and remaining registered in the SRN, underscoring the multifaceted nature of climate action initiatives. Ultimately, collective dedication is the cornerstone of effective climate action.
By harnessing our shared commitment, we can pave the way towards a sustainable, resilient world that flourishes in harmony with nature, ensuring a legacy of environmental stewardship for generations to come. In essence, the SRN and SPEI Scheme represent more than just mechanisms for carbon trading; they embody Indonesia's proactive stance in combating climate change, offering a roadmap towards a brighter, more sustainable tomorrow.
Join us in this journey towards a carbon-neutral future, where every action, no matter how small, makes a significant difference.
Photo: Pertamina Geothermal Energy
If you're eager to embark on supporting Indonesia in achieving its ambitious climate targets, visit one of the Indonesia-based carbon project - Lahendong Geothermal Power Plant Project to discover how you can contribute to shaping a greener, more sustainable future.
Written by Reza Jamiathul Alam.