Indonesia requires Rp204 trillion (US$13.3 billion) in funding to cut emissions in the forest and land use sector and increase carbon absorption to meet the 2030 Forestry and Other Land Uses (FOLU) Net Sink goal, an official said.
Director general of sustainable forest management at the Environment and Forestry Ministry, Agus Justianto, said that the policy aims to achieve a greenhouse gas emission level of minus 140 million tons of carbon dioxide equivalent.
“In addition, we need funding to realize our mitigation action in Indonesia’s FOLU Net Sink 2030. Until 2030, the budget (required) for the implementation is around Rp204 trillion through various funding sources,” he said during a sub-national socialization of Indonesia’s FOLU Net Sink 2030 plan for West Papua province, which was followed from Jakarta on Wednesday.
According to Justianto, funding to support Indonesia’s 2030 FOLU Net Sink climate mitigation actions may come from domestic and foreign carbon markets, the state budget, regional budgets, private investment, domestic and foreign grants, and other funding sources.
In addition, funding from the result-based payment scheme for REDD+, which is now being compensated through international and sub-national cooperation schemes, may also support the policy.
“Private funding sources are directed at grants, green bonds, loans, private equity, and corporate social responsibility or CSR programs,” he informed.
The 2030 FOLU Net Sink carbon emission reduction policy outlines four main strategies: preventing deforestation, supporting conservation and sustainable forest management, protecting and restoring peatlands, and increasing carbon absorption, he explained.
He further said that the problem of climate change is threatening human life because of continued greenhouse gas emissions from various sources such as industries, forest fires, modes of transportation, and fossil fuels, among others.
These have been linked to a rise in temperatures, climate anomalies, rise in sea levels, natural disasters, and water, energy, and food scarcity. These problems are occurring not only at the local and national levels, but also at the global level, Justianto noted.
“Indonesia certainly needs a strong foundation, especially to protect the environment and climate. This requires support and contributions from all parties across generations, across disciplines, and across sectors,” he emphasized.
He said he hoped that all elements will collectively contribute to bringing solutions and innovations for Indonesia’s forestry.
Source: Antara News