Indonesia’s carbon credit export potential in the forestry sector has reached Rp2.6 trillion (US$172.6 million) per year, said Finance Minister Sri Mulyani Indrawati at the Sustainable Finance for Climate Transition Roundtable, a G20 side event held on July 14.
By managing the Indonesia’s 434,811 hectares of forest, the amount of excess carbon credit achieved could reach beyond the nationally determined contribution (NDC) target and possibly to achieve net-zero emissions by 2030, the minister said.
“The excess carbon credit is estimated to be quite large, thus it can be traded in the global market,” she added.
The price of carbon credits could be soared because of the rising demand in the global market after the COP-26. "The Environment and Forestry Ministry is preparing other regulations apart from the NDC to optimize the potential of the excessive carbon credit," Indrawati said.
Meanwhile, Indonesia will develop strategies for using the blue carbon in the coastal ecosystem. Around 75 % to 80 %of global carbon is stored in the coastal ecosystem, including mangroves, sea grasses, and coral reefs.
However, the government of Indonesia postponed the implementation of carbon tax again on late June due to global economic conditions. The authorities said that they need more time to review the carbon tax scheme. Indonesia had already delayed the tax to July from April.