Indonesia’s President-elect, Prabowo Subianto, has unveiled plans to create a $65 billion green fund by 2028 through the sale of carbon credits. The fund aims to finance environmental initiatives such as rainforest preservation, according to a report by Reuters.
Ferry Latuhihin, Prabowo’s climate adviser, stated that a new regulator will be established to oversee carbon emissions and manage the green fund, which is in line with Indonesia’s Paris Agreement commitments. This regulator will create a “special mission vehicle” to manage carbon offset projects, including forest conservation, reforestation, and mangrove restoration. This vehicle will generate carbon credits for both domestic and international sale.
Leveraging Indonesia’s vast natural resources, the fund is expected to grow to 1,000 trillion rupiah ($65 billion) by 2028. The plan is part of Indonesia’s broader goal of reaching net carbon neutrality by 2060. As one of the top 10 global emitters and home to the world’s third-largest tropical rainforest, Indonesia’s role in global carbon markets is critical.
Challenges include fierce competition in the global carbon credit market and the need for credibility in its projects. Despite these hurdles, the initiative is projected to deliver substantial economic benefits, including job creation. Read More
News Credit: Carbon Herald
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