Optimization of livelihoods variations in vulnerable to climate change impacts through carbon pricing

Abstract

Climate change is a threat to the environment, especially dryland ecosystems, coastal areas, and forests. People who live in the forest area and depend on the forestry sector need to get protection, especially in terms of variations in livelihood sources to not depend on the forest sector and exploitation of forest resources. One prospective livelihood option is through carbon pricing. This study aimed to analyze the role of government in terms of creating livelihoods for vulnerable communities in the face of climate change, especially through carbon pricing mechanisms. The study used a qualitative approach with the literature review and desk study. Based on research results, it is known that the government had tried to establish international cooperation for carbon pricing. At present, the partnership had been established with 2 institutions in the European Union with a carbon trade value of 5 USD/ton CO2eq. Through this mechanism, people who live around forest areas have new livelihood options that can withstand land conversion and exploitation of timber resources. Thus, the rate of climate change can be reduced, and mitigation efforts can be strengthened through the carbon trading mechanism.