ASIATODAY.ID, JAKARTA – Indonesia is ready to become the center of the green economy and global carbon trading.
This agenda has become the commitment of the President and Vice President-elect of Indonesia, Prabowo Subianto and Gibran Rakabuming Raka as stated in the 8 Asta Cita Missions to continue to improve low-carbon development as an effort and strategy to strengthen the nation’s independence towards a green economy and sustainable development.
“Low carbon development is the backbone for achieving the vision of a golden Indonesia 2045. Low carbon oriented development requires thorough national development planning. National development planning has now been aligned with the Sustainable Development Goals (SDGs). “SDGs as a global commitment followed by Indonesia have been running since 2015, continuing the previous commitment to the Millennium Development Goals (MDGs),” explained Prof. Dr. Laode Masihu Kamaluddin MSc., M.Eng, Prabowo’s Expert Council/Economic Team who is also the Chancellor of the Indonesian Insan Cita University (UICI) when speaking at the National Seminar forum with the topic “Green Economy Transformation for Sustainable and Just National Development”, which was held by Islamic Student Association Alumni Corps (KAHMI), at the Grand Sahid Hotel, Jakarta, 28 August 2024.
According to Prof. Masihu, to implement this agenda, the Prabowo-Gibran Government will form a Climate Change Control and Carbon Trading Management Agency (BP3I-TNK) which is tasked with directing, managing and supervising sustainable climate change control and realizing carbon sovereignty by utilizing technology. blockchain.
“BP3I-TNK will play a role in realizing carbon sovereignty by ensuring that Indonesia has full control over carbon management, carbon data and carbon transactions to support national sovereignty in environmental management through Climate Change Management and Carbon Trading, Policy Integration and Inter-Ministerial Collaboration/Institutions, Development of Digital-Based Systems that Utilize Big Data and Block Chain Technology, Global Diplomacy through Carbon Sovereignty,” he explained.
Prof. Masihu emphasized that BP3I-TNK is very important for increasing energy security and sustainable economic growth through the development of the green economy and blue economy and the overall welfare of society through various concrete steps;
First, BP3I-TNK will act as the main coordinator in controlling climate change and the carbon trading system, ensuring synergy between institutions and coherent policies.
Second, BP3I-TNK will be responsible for implementing climate change control policies and programs effectively, including developing and monitoring carbon trading mechanisms.
Third, BP3I-TNK will play a role in increasing national capacity in mitigating and adapting to climate change, developing relevant technology and innovation as well as the green economy and blue economy.
Fourth, BP3I-TNK will ensure transparency and accountability in the management of climate change control and carbon trading systems, including reporting and verification of greenhouse gas emissions.
Fifth, BP3I-TNK will strengthen international cooperation and global diplomacy in the fields of climate change and the carbon trading system, including access to funding and technology.
“So it is very clear, Indonesia will become the center of the world’s green economy and carbon trading,” he added.
Carbon Market Potential in Indonesia
Furthermore, Prof. Masihu explained that currently, international carbon market demand will increase 29% per year until 2030 and increase again until 2050, which is dominated by voluntary trading and compliance.
Indonesia as one of the countries with the largest supply of nature-based solutions in the world consisting of land and water has great potential in carbon trading sourced from various Emission Reduction Target Sectors including FOLU 5.48 billion tons of CO2, Energy 395.6 million tons of CO2 , IPPU 1.3 million tons of CO2, Waste 1.7 million tons of CO2, Maritime 1.2 million tons of CO2, Agriculture 2.6 million tons of CO2 with a total of 5.88 billion tons of CO2
“With a digital system, the potential for annual carbon trading transactions will reach US$ 34.5 billion,” he explained.
Meanwhile, the Chair of the Prabowo-Gibran Economic Team, Burhanuddin Abdullah, explained that the acceleration strategy for achieving these targets requires compatible policy support. Economic transformation is one strategy option to accelerate the achievement of these targets.
In the most classic sense, economic transformation is a continuous process of moving human and other resources from sectors with low productivity to sectors with higher productivity (structural change).
The strategies pursued in economic transformation consist of developing a green and low carbon economy, increasing economic productivity, digital transformation, domestic economic integration, human resource development, and relocating the country’s capital.
“Developing a green economy and low carbon development is the most important effort in economic transformation. This is based on the premise that a green economy and decarbonization are the factors that most encourage more optimal economic growth and improve social welfare while maintaining environmental quality. “A green economy and low carbon development is also one of the steps so that Indonesia can get out of the middle income trap,” he explained.
It should be noted that the green economy in the planning documents has been included in the 2020-2024 National Medium Term Development Plan (RPJMN) with three priority programs, namely improving environmental quality, increasing disaster and climate change resilience, and low carbon development.
Meanwhile, the commitment to reduce carbon emissions is contained in Law Number 7 of 2021 and Presidential Regulation Number 98 of 2021. In the future, updating and synchronizing the RPJMN with Asta Cita needs to be carried out.
According to Burhanuddin, economic transformation and low-carbon development policies in the form of supporting the green economy must fulfill aspects of justice. Community rights in local, peripheral and village economic activities must be the subject of development.
“Economic transformation and equitable low-carbon development must become an integral part of national development. Theoretically, this is known in the principles of sustainable development goals. “The “No One Left Behind” principle is a principle that guarantees that development implementation must involve all stakeholders and provide benefits for all,” he stressed. (Midwan)
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