Defara Dhanya, Jakarta – The People's Alliance for Climate Justice (ARUKI) criticized carbon trading, a key topic at the COP30 Climate Summit in Belem, Brazil. During the events from November 10 to 21, 2025, the Indonesian pavilion organized a special forum to connect potential carbon credit sellers and buyers.
For the alliance, carbon trading does not automatically reduce emissions. "The most prominent narrative today is to sell carbon, save forests, and make money. However, the energy sector, especially coal-fired power plants, remains the largest contributor to emissions," said Secretariat Coordinator Torry Kuswardono in an online discussion on Friday, November 7, 2025.
According to Torry, Indonesia's current climate policy is still biased. The energy sector, the main source of emissions, has not been seriously addressed. Meanwhile, forests are being commodified to attract investment and improve the country's image at global forums.
Representing ARUKI, he also mentioned that the carbon absorption process is not instant. "It cannot be assumed that every ton of CO2 we release today will be immediately absorbed by the forest tomorrow morning. There's a delay time," said Torry. During this interval, he said, greenhouse gases continue to accumulate in the atmosphere.
Torry also highlighted the integrity of carbon market data. International studies, he continued, indicate that over-crediting can reach 30-100 percent. "This means that the claim of emission reduction is twice as much as what actually happens," he said.
An investigation by The Guardian (2023-2024) found that about 90 percent of Reducing Emissions from Deforestation and Forest Degradation (REDD+) credits do not represent real emission reductions. The alliance also believes that the carbon market has the potential to trigger a moral hazard. Buying carbon credits to offset emissions instead of transitioning to clean energy will actually slow down the decarbonization phase.
"Yet the main goal should still be to reduce emissions at their source," said Torry.
Social impacts are also in the spotlight. Offset projects in forest areas often intersect with indigenous communities and local farmers. Torry warned, "If not properly regulated, the carbon market could become a new form of ecological colonialism. Our forests are preserved not for the people, but as compensation for other countries' pollution."
Deputy Minister of Environment Diaz Hendropriyono previously confirmed that carbon trading would be one of the government's focuses in COP30. "We will explain and encourage the potential for carbon trading," he said in Jakarta on Wednesday, August 27, 2025.
He claimed that this carbon transaction is part of the relevant parties' commitment to preserving the climate in accordance with the 2015 Paris Agreement. Diaz stated that Norway and Korea are potential buyers. The agreement will be signed in a Memorandum of Purchase Agreement (MOPA). "Of course, we will encourage wider carbon trading," he said.