In a series of #GreenRamadhan2024 campaign activities, the Filantropi Indonesia and the Philanthropy Climate Change Cluster successfully held “Philanthropy Sharing Sessions #39: Understanding Carbon: From Upstream to Downstream, and the Business and Philanthropy Involvement”. The event took place on Thursday, March 28, 2024, online and was attended by various important stakeholders from the government, business sector, philanthropic organizations, and the public.

This activity aimed to increase understanding and awareness of the carbon journey, from natural processes to human activities that cause emissions, and how all this contributes to global climate change. Through in-depth discussions, this event also explored the potential of philanthropy and business in contributing to reducing carbon emissions in Indonesia and encouraging collaboration between sectors to face the challenge of climate change holistically.

“Reducing carbon gas emissions and climate change are cross-sectoral issues. Achievement in overcoming the impacts of climate change requires the participation of all stakeholders by pursuing multi-stakeholder creativity and collaboration. “The members at the Philanthropy Climate Change Cluster join hands to strengthen its relevant programs by collaborating to reach more beneficiaries and have more impact,” said Dolly Priatna, Director of the Belantara Foundation and Coordinator of KFLHK in his opening remarks.

Novita Liangga Kumala, Senior Climate Policy Analyst at Wildlife Works Indonesia, in her presentation, pointed out “There is significant potential in selling carbon credits, especially with the REDD+ (Reduced Emissions from Deforestation and Forest Degradation) model that Wildlife Works Indonesia is developing. This protects native forests and reduces CO2 emissions at the same time. “From the buyer side of carbon credits generally include companies that want to neutralize their carbon footprint, organizations that focus on sustainability, and individuals who want to contribute to climate change mitigation efforts.”

According to data from Ecosystem Marketplace 2023, aviation companies are the largest buyers of carbon, followed by energy companies. Novita emphasized how the right approach to carbon trading can be an effective instrument in reducing carbon emissions globally while bringing meaningful environmental and economic benefits.

Wahyu Marjaka, Director of Sectoral and Regional Resource Mobilization at the Directorate General of Climate Change Control, Ministry of Environment and Forestry (KLHK) said that “KLHK has a strategic role in implementing the Economic Value of Carbon (NEK) in Indonesia, by the national commitment to reducing gas emissions Greenhouses (GHG) and achieving Nationally Determined Contribution (NDC) targets. The Ministry of Environment and Forestry is tasked with regulating and ensuring that the implementation of NEK is carried out following the established regulatory framework, including carbon trading mechanisms, performance-based payments, levies on carbon, and other mechanisms that are in line with developments in science and technology.”

This regulation is directed at supporting the achievement of the GHG emission reduction target, with the forestry sector having the largest share in the contribution to this reduction. In addition, the Ministry of Environment and Forestry is responsible for registering and reporting the implementation of climate change mitigation and adaptation actions as well as NEK through the National Registry System for Climate Change Control (SRN-PPI), which is a platform for managing data and information related to climate change actions and resources in Indonesia.

Chairman of the Lindungihutan Foundation, Miftachur ‘Ben’ Robani, explained “Carbon calculations in the context of blue carbon involve measuring the amount of carbon dioxide (CO2) that can be absorbed and stored by coastal and marine ecosystems, such as mangrove forests, seagrass beds and peat swamps. This process requires an accurate assessment of the ecosystem’s CO2 absorption capacity, which can then be translated into carbon credits. This credit reflects the amount of CO2 emissions that have been avoided or absorbed from the atmosphere, thereby providing economic value to ecosystem conservation and rehabilitation efforts.”

From an economic perspective, blue carbon projects offer significant economic potential for local communities through the creation of a market for carbon credits. By preserving and expanding coastal and marine ecosystems, communities can generate carbon credits which are then sold to companies or individuals who want to neutralize their carbon footprint. This creates a new and sustainable source of income for local communities while encouraging responsible environmental management practices.

From an environmental perspective, preserving and expanding coastal and marine ecosystems as part of blue carbon projects provides far-reaching benefits. This not only increases CO2 absorption capacity, but also supports biodiversity, protects coastal areas from erosion, and improves overall ecosystem health. These projects also contribute to global efforts to reduce greenhouse gas emissions and combat climate change.

Lufaldy Ernanda, as Director of Financial Supervision of Derivatives and the OJK Carbon Exchange, added “The carbon exchange in Indonesia is an important initiative to support the country’s efforts to reduce greenhouse gas emissions by global commitments. The carbon exchange in Indonesia opens up great opportunities for strengthening the green economy and efforts to reduce greenhouse gas emissions.”

Through strong regulations, a structured carbon trading system, and market-strengthening initiatives, Indonesia seeks to maximize the potential economic value of carbon. This will not only support the achievement of Indonesia’s NDC targets but also open up new economic opportunities that are sustainable and environmentally friendly for business actors and the wider community.

Increasing awareness and education of the public as well as the business and philanthropic sectors is an important prerequisite in efforts to preserve ecosystems and tackle climate change. Close collaboration between sectors is needed, involving government, the private sector, philanthropy, and civil society, to realize sustainable environmental initiatives. Government policy support, incentives for business actors, and sustainable investment from the business and philanthropic sectors are also key in reducing emissions and strengthening sustainable economic development.