The Indonesia Investment Authority (INA) is targeting carbon investment opportunities in the nature-based solutions sector through a collaboration with Pollination. INA and Pollination, a global investment and consulting firm, have entered into an agreement in the nature-based solutions (NBS) sector with a primary focus on carbon absorption, biodiversity, and driving socio-economic growth. Ridha Wirakusumah, Chairman of INA's Board of Directors, stated that Indonesia holds the second-largest NBS potential in the world, encompassing 75% of carbon stocks in Southeast Asia. Ridha further highlighted that INA is concentrating on the clean energy sector, crucial for Indonesia's green transition. The carbon reduction strategy through NBS involves conservation activities, improved land management, and restoration efforts to enhance carbon storage. "We see a tangible path to generate significant carbon credits and drive nature-based investment," he stated on Wednesday (August 9th). Martijn Wilder, CEO of Pollination, emphasized the importance of leveraging NBS opportunities to achieve net-zero emissions. He expressed optimism that Indonesia could initiate high-quality projects sought after by global investors.
Based on the Memorandum of Understanding (MoU), INA and Pollination will identify investment opportunities, develop nature-based projects, and enhance strategic planning for financing and investment in NBS. Ridha added, "Through our collaboration with Pollination, our aim is not only to drive significant growth in carbon offsetting, a crucial component in combating climate change, but also to ensure that our projects create tangible socio-economic benefits." In terms of carbon trading, the government has issued Presidential Regulation No. 98 of 2021 and Minister of Environment and Forestry Regulation No. 21 of 2022 to establish the basis for domestic carbon pricing and participation in the international carbon market. The recently issued Minister of Environment and Forestry Regulation No. 7 of 2023 on the Procedure for Carbon Trading in the Forestry Sector further provides guidelines for carbon trading in the forestry sector, offering a clear path for comprehensive climate change mitigation initiatives.
