Exclusive: Indonesia's Prabowo plans $65 bln green fund from selling carbon credits
Incoming govt plans green fund underwritten by carbon credit sales Fund aims to create jobs and help economy reach 8% growth, says adviser Analyst says fund's targets highly ambitious due to market challenges
JAKARTA, Sept 13 (Reuters) - Indonesia's President-elect Prabowo Subianto plans to launch a green economy fund by selling carbon emission credits from projects such as rainforest preservation, aiming to raise $65 billion by 2028, an adviser told Reuters.
A new regulator for carbon emission rules will be established to oversee efforts to reach Indonesia's emissions targets under the Paris agreement, said Ferry Latuhihin, one of Prabowo's advisers on climate policies.
The regulator will then form a "special mission vehicle" that will manage a green fund and operate carbon-offsetting projects, he said in an interview. The projects would include forest preservation, reforestation, and peatland and mangrove replanting, to generate carbon credits that can be sold internationally, Latuhihin said.
The target is to grow the vehicle to reach 1,000 trillion rupiah ($65 billion) by 2028, he said.
"We need to utilise our comparative advantage, which is the nature," Latuhihin said.
The scale of the proposed fund, which has not previously been reported, has the potential to help one of the world’s top 10 emitters and home to the wor( article continues at Reuters )