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Carbon trading: A catalyst for diversified, sustainable bioenergy development
The current carbon-trading mechanism may inadvertently exclude remote indigenous communities from participating in carbon trading even though they have safeguarded the forest for generations.
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Agriculture Ministry biofuel researcher Dibyo Pranowo displays kemiri sunan (Aleurites trisperma) fruit in front of a prototype biodiesel reactor he invented at the ministry’s research center in Sukabumi, West Java, on Jan. 16, 2019. (Antara/Dewanti Lestari)
T
he contemporary energy landscape demands a radical reimagining of Indonesia's bioenergy sector. The country's reliance on conventional feedstock like palm oil for biofuel production comes at a considerable cost.
As global concerns surrounding climate change and environmental degradation intensify, it is imperative that Indonesia seizes the opportunity to revolutionize its bioenergy practices. A potential solution lies in carbon trading, a mechanism that can incentivize the adoption of diversified and sustainable feedstock for bioenergy production.
The prevalent utilization of conventional feedstock in the country’s bioenergy sector has generated both economic benefits and ecological consequences. While this feedstock has contributed to energy production, its detrimental impacts on the environment are irrefutable.
Deforestation, habitat destruction and loss of biodiversity are direct outcomes of the expansion of oil palm plantations. Such practices not only exacerbate climate change but also threaten the very ecosystems that Indonesia seeks to protect. Additionally, the concentration of feedstock sources jeopardizes energy security, as any disruption in supply can lead to significant vulnerabilities.
Indonesia is endowed with an extraordinary bioenergy potential, boasting a capacity of 442 gigawatts, while only utilizing around 2 percent of its entire potential.
This latent capacity, however, remains largely untapped. To achieve energy resiliency, efficiency and sustainability, the nation must venture into uncharted territory by embracing diversified feedstock. Carbon trading emerges as a potent instrument that can steer this transformation.
According to the Environment and Forestry Ministry, the country's economic potential for carbon trading stands at about Rp 350 trillion (US$25 billion) between 2022 and 2026.
