01 June 2021 | Tri Hita Karana Dialogue Session (Cloud): “Natural Capital, Carbon, Communities Market”

On the lead up to and following the April 22-23 Leaders Climate Summit led by US President Biden and Special Climate Envoy John Kerry, Indonesia has held intensive Indonesia US climate Taskforce meetings. The positive momentum is shaped by both Governments concerns for meeting NDC targets and working inclusively with other countries to jointly combat climate change. Indonesia has become the first ASEAN country to announce net zero emission by 2060 conditional on support, and PLN has also announced a moratorium on coal power plants development in the past week.

Indonesia also aspires to explore a regional Natural Capital Carbon Communities (NCCC) alliance to create a regional carbon market to help deliver innovative financing of a just transition toward net zero in the region.

The THK Dialogue Session (Cloud): “Natural Capital, Carbon, Communities Market” held virtually on 1 June 2021 at 7pm to 9pm Jakarta has brought together more than 60 participants with THK Co-organisers and Partners, NCCC partners, distinguished guests and experts from around the globe to brainstorm and share experiences and ideas in the co-development of a robust carbon trading market with Coordinating Minister Luhut Pandjaitan, Pak Febrio Kacaribu, Head of Fiscal Agency, Ministry of Finance; Pak Ngurah Swajaya, Director General for American and European Affairs, Ministry of Foreign Affairs; Ibu Emma Rachmawaty, Director of Mitigation of Climate Change, Ministry of Environment and Forestry and others from the Climate Taskforce. 

The event was graced by THK Forum Co-Host, H.E. Luhut B. Pandjaitan, Coordinating Minister of Maritime and Investment Affairs of Republic of Indonesia. He said “Regional carbon market the Presidential decree on carbon is well advanced and will set the legal foundations for us to use the carbon market and taxes to help realize our ambitions. In so doing we want to set out on the path to establishing a regional market.”

Jeffrey Sachs, President, United Nation Sustainable Development Solutions Network (SDSN) said “We need a significant increase of blended financing, to carry out any programmes. And I think that this highlights the central role of the multilateral development bank’s which have been under used for decades, actually, in promoting development, the balance sheets of the Asian Development Bank, and other regional development bank’s around the world are tiny compared to need. They need new capital increases, new capacities to tap global capital markets, and then to channel funds to the poor countries.”

Febrio Kacaribu, Head of Fiscal Ageny, Ministry of Finance, RI / THK Forum Co-organiser did a closing reflection. He said “We should prepare a policy package in complementing to carbon pricing for this reason, especially for the most vulnerable groups. …We have learned a lot from countries experiences and still welcome inputs for these carbon development in our country. Multilateral for a G20 coalition of the finance minister for climate action. We also have been discussing this and observing from other countries success stories on how carbon pricing has been and should be implemented.”