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Indonesia's agency set to manage funds for environmental protection efforts, carbon trading
The special public service authority, named the Indonesian Environmental Estate Fund (BPDLH) was jointly launched by three ministries namely the Office of the Coordinating Economic Minister, the Finance Ministry and the Environment and Forestry Ministry on Wednesday.
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Smoke rises from a peatland fire in Pekanbaru, Riau province, on Feb. 1, 2018, one of 73 detected hotspots causing haze on the island of Sumatra.
The haze is an annual problem in Indonesia caused by fires set in forest and on carbon-rich peatland in Indonesia to clear land for oil palm and pulpwood plantations. (AFP/Wahyudi)
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ndonesia is one step closer to implementing a carbon-pricing scheme within the domestic market as part of efforts to achieve its emission-reduction targets following the launch of a public service agency (BLU) tasked with managing funds related to environmental protection and conservation.
The BLU is expected to be more flexible in managing environmental funds from domestic and international sources as well as disbursing them for pro-environment initiatives.
The agency, named the Indonesian Environmental Estate Fund (BPDLH), was jointly launched by three ministries namely the Office of the Coordinating Economic Minister, the Finance Ministry and the Environment and Forestry Ministry on Wednesday.
Finance Minister Sri Mulyani Indrawati said the agency would have several functions, such as financially supporting ministries and governmental institutions in carrying out environmental programs and funding other initiatives related to the environment.
“Most importantly, this BLU will be focused on the issue of climate change, including by developing a carbon market,” Sri told journalists on Wednesday.
She was echoed by Environment and Forestry Minister Siti Nurbaya Bakar, who said the agency would work to support “climate change mitigation and adaptation efforts, which include carbon credit and trading as well as indigenous-people empowerment.”
Indonesia is one of many countries that have pledged to reduce greenhouse gas emissions by 2050 -- laid out in the Nationally Determined Contribution (NDC) -- as an attempt to reduce the impact of climate change.
