To reduce emissions and the presence of greenhouse gasses in the atmosphere, countries around the world are making regulations to achieve zero net emissions, to reduce the rate of temperature increase in climate change.
Several methods can be used by each industry to reduce the total impact of emissions produced in the processes that occur in industrial activities, ranging from further processing of waste materials before being released into nature, to environmental restoration projects.
In general, environmental restoration projects are divided into two types according to their location: land/forest carbon projects and blue carbon projects. Land carbon projects take place on terrestrial areas while blue carbon projects involve coastal and marine areas.
This article will discuss more deeply about land/forest carbon projects.
Policies and Regulations
In Indonesia, regulations on land/forest carbon market projects are regulated in the Minister of Environment and Forestry Regulation No. 7 of 2023. This regulation is a form of Indonesia’s national commitment to achieving the goals of the Paris Agreement to the United Nations Framework Convention on Climate Change.
There are several types of mitigation actions that can be carried out in this project, such as reducing the rate of deforestation of mineral land, forest restoration, biodiversity conservation, socio-economic forestry, urban open spaces, etc.
Potential and Limitations
Terrestrial carbon projects are generally more widely used than blue carbon projects because they are better known and easier to implement. Terrestrial carbon projects can also cover more area in a given area which also contributes to environmental services for biodiversity and boosts the local economy.
Globally, forests are estimated to store more than 1 trillion tons of CO2 in biomass. But they lose 6 billion tons to deforestation each year. The world’s forests take in approximately 16 billion metric tons of CO2 annually, while releasing around 8.1 billion metric tons. As a result, they have a net CO2 absorption of 7.6 billion metric tons each year.
This project is favored because it is relatively more cost-effective than blue carbon. The method employed is also more efficient and has been established earlier, making it more familiar and supported by a greater number of service providers for industries that require it.
While this project provides long-term carbon absorption, its rate of absorption is slower. Despite being able to cover a larger area, terrestrial projects can sometimes face challenges due to competition for land use, such as agriculture, plantations, and settlements. Additionally, forest areas are susceptible to deforestation, wildfires, and other human activities.
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Reference:
Nancy Harris and David Gibbs (2021). Forests Absorb Twice As Much Carbon As They Emit Each Year. World Research Institute. Accessed online at 15/09/2024 from: https://www.wri.org/insights/forests-absorb-twice-much-carbon-they-emit-each-year
De Mooij, R. A., Keen, M. M., & Parry, I. W. (2012). Fiscal policy to mitigate climate change: A guide for policymakers. Ch. 5 Forest Carbon Sequestration. International Monetary Fund.
Kementrian LHK. (2023). Peraturan Menteri Lingkungan Hidup Dan Kehutanan Nomor 7 Tahun 2023 tentang Tata Cara Perdagangan Karbon Sektor Kehutanan.
Harris, N. L., Gibbs, D. A., Baccini, A., Birdsey, R. A., De Bruin, S., Farina, M., … & Tyukavina, A. (2021). Global maps of twenty-first century forest carbon fluxes. Nature Climate Change, 11(3), 234-240.