“Code red for humanity”, Antonio Guterrez, Secretary General of the United Nations (UN) was quoted as saying, on the recently released Science Base part of the Sixth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC).  The report highlights the fact that the window to act to combat the climate crisis is rapidly closing.  The Paris Agreement commits the world to keep global heating well below 2 degrees Celsius (°C) above that in the pre-industrial era, and put serious effort to keep it not to exceed 1.5 °C.  Today, the globe has reached about 1.2 °C hotter than the beginning of the industrial revolution.

To achieve the ultimate objective of the Paris Agreement, the world needs to enhance its emission reduction ambition significantly.  As it stands, the collective commitments by the signatories of the Paris Agreement as shown in their Nationally Determined Contributions (NDCs) would not limit the heating even at 2 °C.  Additional pledges made at the most recent 26th Conference of the Paries (COP26) to the United Nations Framework Convention on Climate Change (UNFCCC) strengthened the ambition to reach global heating of about 1.8 °C.  In addition to consistently implement the enhanced ambitions in its NDCs, to keep the global heating not to exceed 1.5 °C the world needs to reach net zero emissions by mid-century.

Indonesia has committed itself to keeping its emissions 29 percent below its business as usual trajectory with own resources and 41 percent with international assistance in 2030.  This commitment is already submitted as Indonesia’s updated NDC to the UNFCCC in 2021.  Indonesia is also committed to achieving net zero emissions in 2060 or earlier.  It is even committed to turning its forestry sector into net sink by 2030.  To achieve such, Indonesia has issued Law No. 7/2021 that for the first time includes a stipulation on carbon tax.  Indonesia has also issued Presidential Regulation No. 98/2021 on the Economic Valuation of Carbon that contains stipulations on carbon pricing — tax and levies, carbon market such as cap-and-trade and offset, and results-based payment.  Already, a handful of companies have announced their rather ambitious net zero targets.

Landscape Indonesia is in a good position to provide support to the (central and local) governmental entities, the business communities, and the financial institutions to prepare themselves to achieve their net zero targets and to lay out roadmaps to do so.  Landscape Indonesia has assisted a number of sizable companies to manage their carbon assets.

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