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ANALYSIS-Indonesia's new green fund urged to focus on rainforest protection

Jakarta now aims to prepare regulation that will allow the country to launch a carbon trading programme.

Under such schemes, entities wanting to reduce their planet-warming emissions buy credits from projects that keep greenhouse gases out of the atmosphere, such as protecting forests that store carbon.

“This should be one of the core businesses of the fund,” said Daniel Murdiyarso and Michael Brady, scientists at the Center for International Forestry Research.

“A carbon trading programme is important for Indonesia to fulfil and receive performance-based payments for forest protection and to cover its nationally determined contributions under the Paris Agreement,” they added.

Like many Asian countries, Indonesia is experiencing a rise in urbanisation, population and economic growth and is scrambling to find ways to increase its electric power capacity, with coal plants set to play a major role.

But under the Paris accord, Indonesia committed to reducing its greenhouse gas emissions by 29 percent by 2030, a target that could rise to 41 percent with international support.
Read more on Reuters UK