Unpacking Greenwashing: Indonesia’s Carbon Trading Initiative at COP30 Sparks Concerns

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Unpacking Greenwashing: Indonesia’s Carbon Trading Initiative at COP30 Sparks Concerns

Indonesia’s Climate Commitment Under the Spotlight at COP30

As the UN climate conference kicks off in Brazil, Indonesia’s approach to climate change is stirring debate. The focus on carbon trading has some experts worried that economic gains are overshadowing true environmental efforts.

This year’s conference, COP30, is taking place in Belém, Brazil, where delegates from 195 countries have gathered to discuss crucial climate issues like green energy and funding for climate initiatives. Indonesia’s delegation is led by Hashim Djojohadikusumo, the brother of President Prabowo Subianto, who opened their pavilion on day one.

Indonesia announced a goal to generate $7.7 billion each year through carbon trading. According to Hashim, this initiative aims to establish Indonesia as a leader in a trustworthy global carbon market while also creating green jobs and promoting sustainable livelihoods.

Carbon trading allows countries or companies to buy and sell “carbon credits” to manage their emissions. Each credit represents one metric ton of carbon dioxide equivalent emissions. Those who stay below their emissions cap can sell their surplus credits to others who exceed their limits. After a four-year ban, Indonesia is now ready to sell its carbon credits overseas.

However, critics argue this trading system might actually permit big polluters to continue harming the environment without making significant changes. Iqbal Damanik from Greenpeace Indonesia describes this as “greenwashing,” where superficial efforts replace genuine climate action like phasing out fossil fuels.

Environmental groups like the People’s Alliance for Climate Justice (ARUKI) criticize Indonesia’s carbon trading strategy as a “false climate solution.” They point to the rights of marginalized communities, especially indigenous people, often overlooked in these initiatives. If poorly managed, this carbon scheme could lead to agrarian conflicts, especially since land designated for carbon projects might overlap with traditional territories.

With Indonesia’s climate policies already facing criticism for being inadequate, experts like Torry Kuswardono from the Pikul Foundation argue that the focus should be on actual emissions reductions rather than selling carbon credits. The country’s commitment to lowering emissions, outlined in its second nationally determined contribution (SNDC), has been labeled “weak,” particularly regarding fossil fuel use.

As Indonesia moves forward with its carbon trading plans, many are urging a shift in focus toward real sustainability efforts that consider both the economy and the environment. For countries facing similar climate challenges, the balance between ecological integrity and economic needs remains a pivotal conversation.

For further details, you can explore the latest updates from The Jakarta Post.



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