The role of government in operationalising markets for REDD + in Indonesia

Abstract

The global climate initiative Reducing Emissions from Deforestation and Forest Degradation (REDD+) initially included carbon markets as one potential policy mechanism to finance a range of forestry projects in developing countries. Indonesia was an early leader on REDD+, and set up the regulatory frameworks and monitoring systems to support demonstration projects that could trade credits in voluntary carbon markets. This article applies a neoliberal governmentality framework to evaluate the development of REDD+ market institutions in Indonesia during the Readiness period between 2008 and 2013. It critiques the role of the state in this process, and how the authority of public agencies shapes the actions of private subjects. The case of Indonesia indicates a pivotal role for government agencies at multiple levels in integrating the operation of REDD+ market activities within a supportive regime of forest and land management. Critical to this process was legislation to trade in forest carbon and obtain project licenses, devolved land-use planning and forest management that could support commercial activities, and robust MRV surveillance systems to oversee on-ground activities. Despite these efforts, projects were often subject to an uncertain and highly contested forest management regime, undermining attempts to demonstrate the viability of operationalising market mechanisms at the local scale.