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Certification headache for Indonesia's budding carbon market
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National treasure: The West Rinjani nature park in Pemenang district in North Lombok, West Nusa Tenggara, is pictured on Sept. 4, 2023. Indonesia has tremendous carbon emissions absorption potential. (Antara/Ahmad Subaidi)
T
he recent launch of Indonesia’s carbon exchange could drive the business of carbon credit certification as firms and organizations seek to demonstrate their sustainability credentials, but experts note that the regulatory framework for this has yet to be completed.
Purchasing carbon credits allows companies to offset their emissions, while the sale of such credits can generate revenue to reward sustainable action. In either case, the transparency, legality and effectiveness of projects need to be proven through certificates issued by independent parties.
Carbon certification is still a novel concept in Indonesia, but businesses are beginning to grow aware of its market potential.
Read also: COP28 faces debate over controversy-mired carbon credits
Setting standards
Rizaldy Yudhista, a carbon market practitioner, said the carbon credit certification industry in Indonesia was still shaping up, and carbon credit calculation methodologies used elsewhere were not necessarily applicable in Indonesia at this time.
To begin with, the government needed to approve any methodology before it could be used in the field, he told The Jakarta Post on Oct. 28. However, the National Registry System (SRN), the institution in charge of carbon credit certification, needed to be refined to properly evaluate the carbon footprint of logging concessions and bring it in line with international standards as defined in the REDD+ Methodology Framework (REDD+MF).
