Indonesia has introduced measures to bolster carbon pricing as part of its strategy to promote sustainable agriculture and reduce greenhouse gas emissions, according to government sources. The move aligns with the country’s broader climate commitments under the Paris Agreement.
The policy, announced by the Ministry of Environment and Forestry, establishes a framework for carbon credits in the agricultural sector, encouraging farmers to adopt low-emission techniques. Analysts suggest this could position Indonesia as a regional leader in climate-smart farming.
“Carbon pricing is a critical tool for transitioning to sustainable agriculture,” said an official familiar with the policy. “This will help smallholders access new revenue streams while reducing deforestation risks.”
Indonesia’s agricultural sector accounts for approximately 12% of national emissions, primarily from peatland degradation and fertilizer use. The new system builds on existing REDD+ initiatives that have shown mixed results since 2010.
Experts warn implementation challenges remain, particularly in monitoring and verifying emission reductions across thousands of small farms. However, if successful, the model could be replicated by other developing nations facing similar climate pressures.