Indonesia is often associated with its abundant natural resources, and the country has immense potential to utilize these resources sustainably and generate revenue from carbon sales. This potential could reach up to USD 7.1 billion annually.
According to Coordinating Minister for Maritime Affairs and Investment, Luhut B. Pandjaitan, research from various institutions indicates that Indonesia’s Nature-Based Solutions (NBS) or Ecological-Based Approaches (EBA) could achieve 1.5 GT CO2eq per year, translating to approximately IDR 112.5 trillion or USD 7.1 billion.
“As we strive towards a net-zero future, in line with the COP28 UAE consensus, all parties are committed to transitioning from fossil fuels, accelerating ambitious and scalable NDC emission reductions, tripling renewable energy, and doubling energy efficiency by 2030,” Luhut stated on Monday (May 20, 2024).
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Luhut emphasized Indonesia’s significant potential to leverage its natural resources sustainably and generate income through internationally standardized carbon pricing mechanisms.
“Indonesia is blessed with vast natural resources that can be used to combat climate change,” he said.
Luhut also mentioned Indonesia’s initiative during the G20 Summit, the Global Blended Finance Alliance (GBFA), which he believes could be a solution to global climate change challenges.
“Through the GBFA, we are laying the groundwork for transformative change, leveraging blended finance and forward-thinking knowledge to accelerate value creation and investment in key economic sectors such as energy, forests, the blue economy, including mangroves and seagrass, health infrastructure, and sustainable tourism,” explained Luhut.
He added that the GBFA is not only a solution for energy transition but also that Indonesia is leading in forest and mangrove conservation as part of Nature-Based Solutions for climate action.
In line with this, Minister of Energy and Mineral Resources Arifin Tasrif hopes that the GBFA can help Indonesia achieve Net Zero Emissions (NZE) by 2060.
“We also hope that the G20 Bali GBFA can support our program to realize Net Zero Emissions by 2060,” said Arifin.
To achieve this, the government will diversify energy sources by optimizing the use of renewable energy. “We are confident that we can meet the target and implement the roadmap, despite some challenges,” Arifin concluded.
Energy diversification is key to achieving net zero emissions by 2060. With commitment and cooperation from all parties, and with carbon sales, this target can be met, leading Indonesia towards a cleaner and more sustainable energy future.
