Cooperatives' proposed carbon trading role faces readiness hurdles
Under the proposed scheme, cooperatives would register carbon units from forests or mangroves with the Carbon Unit Registration System (SRUK), enabling communities to directly benefit from sales.
Cooperatives in Indonesia are being considered for a role in the country's proposed carbon trading scheme, but technical challenges may hinder their readiness. The government aims to allocate carbon trading revenue to villages through Red and White Cooperatives, which would manage carbon units. However, analysts caution that many cooperatives lack the necessary infrastructure to handle even basic functions, let alone the complexities of carbon markets.
Environment Minister Moh. Jumhur Hidayat highlighted Indonesia's potential as a supplier of environmental services, particularly its vast forests and mangroves that absorb carbon emissions. The government wants to ensure that carbon trading benefits reach the people, including through cooperatives. Luthfyana Larasati, a senior manager at the Climate Policy Initiative, advises policymakers to first strengthen cooperative capacity before assigning additional responsibilities, such as becoming carbon unit managers.
Registration with the Carbon Unit Registration System (SRUK) is a crucial step for cooperatives to participate in trading, as all carbon transactions in Indonesia must pass through business entities via the Indonesia Stock Exchange (IDX) Carbon exchange under oversight from the Financial Services Authority (OJK).
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
