IBC chief operating officer William Sabandar said education was the early step to build a strong carbon market ecosystem. Private sector players needed to understand and harmonize their decarbonization narrative and green growth as part of their future business strategy, he said.

“The ICMA is built on three pillars. First, to strengthen education and change the mindset of industrial players to orientate [them] in green solutions, including those who come from fossil-based sectors,” William said, as quoted in a statement that referred to his remarks in a panel discussion during the ICMA’s launch event on July 24 in Jakarta.

“Second, extending the sustainability narrative coverage through dissemination and massive public communications, especially through the media.”

Meanwhile, the third pillar was to push for active involvement in practical programs that supported Indonesia’s energy transition and green growth initiatives.

In the same statement, Paul Butarbutar, executive director of the Indonesia Center for Renewable Energy Studies (ICRES), said the ICMA provided a strategic vessel for market players to gain practical and technical knowledge, so they were ready to face the increasingly complex dynamics of carbon market.

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“The main challenge in developing the national carbon market is the low quality and integrity of some of the carbon credit projects, which have led to a decline in trust from the global market,” he said.

“Collaboration between the private sector, the government and the public is very important to overcome the gap.”

The government has set a revenue target of US$65 billion from carbon credit exports by 2028. Home to one of the world’s largest tropical forests, Indonesia is strategically positioned in the global effort to reduce greenhouse gas emissions and implement carbon trade.

Since its launch two years ago on Sept. 26 until July 11 this year, the Indonesia Carbon Exchange (IDXCarbon) has recorded a total transaction volume of 599,326 tonnes of carbon dioxide equivalent (CO2e) with a total value of Rp 77.95 billion ($4.73 million)/

Another panelist, Natalia Rialucky Marsudi, founder and CEO of Southeast Asian carbon project developer Fairatmos, said carbon credit was an important instrument to balance economic growth with environmental conservation.

She also stressed the importance of taking an inclusive approach to carbon market development, where all parties from corporations and village forest communities to the general public were actively involved.

“Our aspiration is to create inclusivity. All people must have the same chance to see the opportunity, not merely the economic value but as an emission-contributing country. We cannot rely only on a few players,” Natalia said.

“Carbon project development in Indonesia still faces several challenges, from technical obstacles to limited climate financing,” she said, adding that Fairatmos was present to provide technology-based solutions and bridge the gap between carbon credit suppliers and buyers.

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