Luhut Reveals NBS Indonesia Is Estimated To Reach 1.5 GT CO2 Equivalent Per Year

Coordinating Minister for Maritime Affairs and Investment (Marves) Luhut B. Pandjaitan (Ministry of Energy and Mineral Resources (ESDM) (photo: dock. special)

JAKARTA - Coordinating Minister for Maritime Affairs and Investment (Marves) Luhut B. Pandjaitan revealed, Indonesia has great potential to utilize its natural resources in a sustainable manner and generate revenue from carbon sales.

Based on research by various institutions including Mc Kinsey Indonesia, it is estimated that they have Nature Based Solutions (NBS) or Ecological Based Approach (EBA) which reaches 1.5 GT CO2eq per year, around Rp112.5 trillion or 7.1 billion US dollars.

"While we are trying to get to the future of net-zero. Referring to the CONsensus COP28 UAE, all parties are committed to switching from fossil fuels, accelerating the ambitious and economic-scale reduction of NDC emissions, and driving three times renewable energy and doubling energy efficiency. by 2030," Luhut said in his statement, Sunday, May 19.

According to Luhut, Indonesia has great potential to utilize its natural resources in a sustainable manner and generate revenue from carbon sales through an international standard carbon pricing mechanism.

"Indonesia is blessed with enormous natural resources that can be used to tackle climate change. Based on several studies, including McKinsey in 2023, Indonesia has the potential for Nature Based Solutions (NBS) or Ecological Based Approach (EBA) which is very large from mitigation efforts of up to 1.5 GT CO2eq per year, around 112.5 trillion rupiah or 7.1 billion US dollars," said Luhut.

Luhut also mentioned Indonesia's initiative on the sidelines of the G20 Summit, namely the Global Blended Finance Alliance (GBFA), which according to him can also be a solution to facing global climate change challenges.

According to Luhut GBFA, it also supports the achievement of SDGs for developing countries, LDCs, archipelagic countries, and South Global Collaboration.

"Through GBFA, we lay the basis for transformative changes, utilizing mixed finance and future knowledge to accelerate the creation of value and investment in key economic sectors such as energy, forests, blue economy, including mangroves and seagrass, infrastructure health, and sustainability. tourism," Luhut explained.

Luhut added that GBFA is not only a solution to overcome the energy transition, but Indonesia also leads in the fields of forests and mangroves as part of the Natural-Based Solution for climate action.

In line with this, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif hopes that GBFA can help Indonesia realize Net Zero Emission (NZE) in 2060.

"We also hope that the G20 Bali Global Blended Finance Alliance (GBFA) can support our program to realize Net Zero Emission by 2060," said Arifin.

To make this happen, Arifin said that the government's NZE will diversify energy by optimizing the use of renewable energy sources.

"We believe that we can achieve the target and implement the roadmap, despite some challenges," concluded Arifin.

Energy diversification is the key to achieving net zero emissions by 2060. With commitment and cooperation from all parties, this target can be achieved and Indonesia can move on to a cleaner and more sustainable energy future.