Carbon Market Is An Alternative For RI After The US Leaves The Paris Agreement

Illustration. (Photo: Doc. Antara)

Research Associate CORE Indonesia Sahara considers that Indonesia can optimize carbon trading as a source of sustainable funding, especially after the issuance of the United States (US) from the Paris Agreement (Paris Agreement/PA).

The Sahara assesses that the issuance of the United States (US) from the Paris Agreement (Paris Agreement/PA) has the potential to affect the commitment of other developed countries in providing funding and assistance in handling climate change.

If this happens, it can reduce the amount of funds available for energy transition projects in Indonesia. On the other hand, said Sahara, the energy transition project in Indonesia requires large funding.

"Indonesia as a developing country has limited costs to execute the energy transition process will be the most affected," said Sahara, quoted by Antara, Wednesday, January 22.

The Sahara reminded that funding for climate financing will become more difficult with the exit of the US from the Paris Agreement. This is also because the US is one of the main donors in controlling climate change.

The reduced climate change funding could cause the energy transition project to become hampered, said the Sahara, which is also the Director of the International Trade Analysis and Policy Studies (ITAPS) of the Faculty of Economics and Management (FEM) IPB.

When asked whether China is a potential country for Indonesia to get funding through cooperation, the Sahara said that it depends on China's own commitment to whether to focus or not to focus on climate change management.

"If so (China has a commitment to climate change management), it could be a source of funding (through cooperation with Indonesia)," he said.

Earlier on Monday, January 20 local time after his inauguration, US President Donald Trump stated that the US would withdraw from the 2016 Paris Climate Agreement because it considered the agreement unfair and biased.

On the same day, Trump signed an executive order to formally withdraw from the agreement.

The Chinese government has expressed concern over the US decision to withdraw from the Paris Agreement.

At a press conference in Beijing, Tuesday, January 21, local time, Chinese Foreign Ministry Spokesman Guo Jiakun confirmed that China's active determination and action to actively respond to climate change will not change.

The Paris Agreement on climate change was adopted in 2015 by 195 members of the United Nations Framework Convention on Climate Change.

The purpose of the Paris Agreement is to limit the increase in global average temperature to well below 2 degrees Celsius above pre-industrial levels, and should be close to 1.5 degrees Celsius.