Decree of the Minister of Environment and Forestry of the Republic of Indonesia no. 1027/MENLHK/PHL/KUM.1/9/2023 concerning Forestry Sector Carbon Trading Roadmap.

This Ministerial Decree, implementing provisions of Article 6 paragraph (3) of the Regulation of the Minister of Environment and Forestry Number 21 of 2022 concerning the Implementation of Economic Values of Carbon, and the provisions of Article 12 paragraph (3) of the Regulation of the Minister of Environment and Forestry Number 7 of 2023 concerning Procedures for Carbon Trading in the Forestry Sector, establishes the Carbon Trading Roadmap in the forestry sector, attached to the text of the Decree. The Decree specifies the content of the Roadmap including: disaggregation of national emission reduction targets; results of the greenhouse gas emission inventory; specific criteria related to emissions trading; emission trading targets; plans and strategies for achieving Nationally Determined Contributions targets; performance measurement compliance period; harmonisation with the Credit Based Payment mechanism performance. The attached Roadmap is a manifestation of the Government's commitment in the Nationally Determined Contribution (NDC) in handling global climate change, in order to fulfil the Paris Agreement to the United Nations Framework Convention on Climate Change.
The Roadmap defines the following relevant terms: carbon trade, as a market-based mechanism to reduce emissions through carbon unit trading activities; forest area; greenhouse gas emissions; climate change mitigation and adaptation actions; carbon trading mechanism between business actors; measurement, report and verification; deforestation; land degradation; logging at reduced impact; protected forest; production forest; forest rights; cooperatives. The main purposes of this Roadmap are: providing a reference for stakeholders, central and local governments, business actors and community in the implementation of carbon trading in the forestry sector; ensuring the implementation of carbon trading in the efforts to control greenhouse gas emissions from the forestry sector, and to achieve the Nationally Determined Contribution (NDC)'s targets. The Roadmap covers the following topics: forestry and peat and mangrove management sub-sectors; forest rights area; customary forest area; national forests.