Reflecting on REDD+: Challenges Towards Indonesia’s Carbon Pricing

Abstract

Indonesia, as one of many countries committed to implementing climate action frameworks, sees the need to develop solid carbon pricing regulations and expand the scope using its REDD+ (Reducing Emission from Deforestation and Forest Degradation Plus) experience. As a result-based payment for carbon trading, REDD+ can be a beneficial learning lesson for it. Prior to the United Nations Climate Change Conference 26 (COP), Indonesia demonstrated its political resolve to advance its climate policy by issuing a regulation on carbon pricing through Presidential Regulation No. 98/2021. Indonesia’s involvement in REDD+ has resulted in strong foundation accomplishments for carbon pricing implementation in terms of institutionalization, technicalities, and socioeconomic outcomes. However, not all REDD+ projects in Indonesia achieve the desired results. This paper aims to reflect on REDD+ as a lesson learned to identify the challenges towards Indonesia’s carbon pricing. A literature review and comparative study of carbon pricing implementation in Brazil, Canada, China, Colombia, and New Zealand were used to support this paper. This paper highlights several potential challenges to carbon pricing implementation in Indonesia such as determining the right instruments, strengthening government’s political will, transparency and public involvement, distribution of carbon price choices for subnational capacities, and the multi-nature of carbon pricing.