ADCO Law and RHTLaw Asia hosted ADCOTalks on “Development of Carbon Trading Instruments in Indonesia.”
ADCO Law
ADCO Law
On Wednesday, July 26, 2023, ADCO Law and RHTLaw Asia successfully hosted ADCOTalks on “Development of Carbon Trading Instruments in Indonesia.” The event aimed to highlight the crucial role of carbon trading in Indonesia, especially in the implementation of carbon economic values by the Government.
Present as speakers in the first session discussing Carbon Trading in the Forestry and Other Land Use Sectors (FOLU) were Alta Mahandara, Partner at ADCO Law, and Abe Jacob, Chief Future Proofist of Future Proof Global Pte Ltd. The discussion continued with Carbon Trading in the Energy Sector (Power Plant Subsector), which was presented by Aditya Kesha, Senior Partner at ADCO Law and Azman Jaafar, Managing Partner of RHTLaw Asia. The third session continued with the discussion of Carbon Trading in the Oil and Gas Sector (CCUS), which was further elaborated by the speakers Aditya Kesha, Senior Partner at ADCO Law, Adimas Wicaksono, Legal Counsel at ADCO Law and Anil Changaroth, Co-Head ESG Practice at RHTLaw Asia. The discussion was moderated by Christopher Johnston, Business Advisor of ADCO Law.
Indonesia, with its great potential in the renewable energy sector, is taking concrete steps to combat climate change. The government has introduced a carbon trading system through Presidential Regulation No. 98 of 2021. This regulation aims to achieve the Nationally Determined Contribution (NDC) target and to control greenhouse gas (GHG) emissions in the national development, which demonstrates Indonesia’s commitment to supporting the reduction of GHG emissions, and achieving NDC.
According to the Ministry of Environment and Forestry in 2021, Indonesia has the third-largest tropical rainforest in the world, covering an area of 125.9 million hectares. This rainforest has the potential to absorb carbon emissions of 25.18 billion tons.
Read More: Alta Mahandara
For the reason above, through the Ministry of Environment and Forestry, the government has issued Regulation of the Minister of Environmental and Forestry Number 7 of 2023 regarding the Procedures for Carbon Trading in the Forestry Sector (“MEFR 7/2023”), the primary focus of which is to regulate the execution of carbon trading and the utilization of GHG emissions/Carbon and carbon offsets within the forestry sector. The critical points of these regulations will further be elaborated in the subsequent explanation.
The Government of Indonesia has also implemented a program known as Indonesia’s Forestry and Other Land Use (FOLU) Net Sink 2030, designed to effectively manage GHG emissions in the forestry industry. Through this program, Indonesia has demonstrated its commitment to contributing to global temperature regulation and addressing climate change by implementing a new program that follows up on Regulation PP 98/2021.
The significance of the carbon economy is one of the vital instruments in fulfilling the government’s responsibility to contribute to reducing GHG emissions.
In addition, carbon serves as a universal indicator to measure the success of climate change control efforts at the national level. It holds significant economic value and brings international benefits to the community. Furthermore, it reflects the governance principle of sustainable resource management.
Read More: Aditya Kesha Wijayanto
Aditya Kesha, Senior Partner at ADCO Law, believes that ADCOTalks can raise the awareness of business actors in Indonesia on this crucial issue. “We hope that with this event, awareness will arise from business actors to be able to contribute to reducing GHG emissions, supporting a sustainable economy and the welfare of the Indonesian people,” Kesha explained.
The ADCOTalks event was attended by clients and companies from diverse business sectors. This event is a routine program organized by ADCO Law for all stakeholders to meet. This event also captures various perspectives from business sectors and enhances the discussion.
About ADCO Law:
ADCO Law is a law firm that offers clients a wide range of integrated legal services, including in commercial transactions and corporate disputes in a variety of industry sectors. Over the course of more than a decade, we have grown to understand our client’s industry and business as well as the regulatory aspect. In dealing with business dynamics, we provide comprehensive solid legal advice and solutions to minimize legal and business risks.
From Upstream to Downstream, We Understand Your Industry. In complex transactions as well as in certain cases, we are actively engaged with financial, tax, and environmental specialists, accountants, and law firms from various jurisdictions to give added value to our clients. Having strong relationships with Government agencies, regulators, associations, and industry stakeholders ensures that our firm has a holistic view of legal matters.
ADCO Law is a Proud Member of the Alliott Global Alliance (AGA) in Indonesia. Founded in 1979, AGA is one of the largest and fastest-growing global multidisciplinary alliances, with 215 member firms in 95 countries.
As a law firm, we also believe in regeneration. To stay abreast of business changes and stay relevant, our formation of lawyers is comprised of the top graduates from Indonesian and international law schools.
For further details, please contact:
Alvin Mediadi, Business Development Manager, Indonesia
[email protected]
Patricia Maya, Marketing Communication, Indonesia
