Indonesia could earn $100-$180 million from carbon trading
May 28, 2007
Indonesia says it hopes to soon see millions of dollars from carbon trading, reports the International Tropical Timber Organization (ITTO) in its latest update.
Director General for Forest Protection, Hilman Nugroho, said that Indonesian forests could earn between $100 million and $180 million from carbon trading at $3 and $5 per ton under the clean development mechanism (CDM). In order to capitalize on the opportunity, Nugroho said the country would have to “shift its focus on forest development from timber to non-timber because the economic value of timber was only some 5% from the forest total economic value,” stated the ITTO.
“Non-timber economic value includes environment services such as water and hydrology services, climate protection through carbon absorption, and biodiversity protection,” it added.
Indonesia has the third most forest cover of any tropical forest country, but has the second highest deforestation rate due to logging, clearing for agriculture, and forest fires. The country has expressed interest in a proposal to compensate tropical countries that reduce their deforestation rate.