Indonesia Eyes $65 Billion Through Green Economy Fund

Indonesia's President-elect Prabowo Subianto plans to launch a green economy fund by selling carbon emission credits from rainforest preservation projects, aiming to raise $65 billion by 2028. The initiative includes creating a regulatory body for carbon emissions and establishing a special mission vehicle to manage the green fund.

Indonesia's President-elect Prabowo Subianto has announced an ambitious plan to launch a green economy fund by selling carbon emission credits derived from rainforest preservation projects. His administration aims to raise $65 billion by 2028, according to an advisor.

A new regulator will be formed to oversee Indonesia's adherence to emissions targets under the Paris Agreement, stated Ferry Latuhihin, climate policy adviser. This regulator will establish a 'special mission vehicle' to manage the fund and operate carbon-offset projects like forest preservation, reforestation, and peatland and mangrove replanting.

The fund targets 1,000 trillion rupiah by 2028, potentially aiding Indonesia, one of the top 10 global emitters, in achieving net carbon neutrality by 2060. Despite this plan's scale, it faces challenges such as competition in global carbon markets and credibility of projects.

(With inputs from agencies.)