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illuminem summarizes for you the essential news of the day. Read the full piece on Yale Environment 360 or enjoy below:
🗞️ Driving the news: The United Nations has approved a global carbon trading market, with Indonesia poised to be a major player by leveraging its vast rainforests and peatlands
• The initiative could generate up to $65 billion for Indonesia by 2028, but critics highlight risks of fraud, double counting, and flawed carbon accounting
• The system is expected to launch in 2025, following years of negotiations
🔭 The context: Indonesia, home to the world’s third-largest tropical rainforest and extensive peatlands, has positioned itself as a leader in the carbon credit market
• Projects like the Katingan Mentaya carbon offset project aim to protect forests while generating credits sold to major corporations
• However, issues such as outdated baselines and ineffective peatland restoration efforts raise doubts about the actual climate benefits
🌍 Why it matters for the planet: If flawed carbon accounting practices persist, they could undermine global climate efforts by inflating carbon offsets and masking real emissions
• Indonesia’s approach will serve as a test case for the viability of the U.N.’s new carbon market framework Properly implemented, such markets could help fund critical conservation efforts and reduce global carbon emissions
⏭️ What's next: Indonesia must address double-counting risks and improve the transparency of its carbon credit system
• Meanwhile, the international community will closely monitor the U.N. market’s enforcement of rules to prevent widespread fraud
• The success or failure of Indonesia’s initiatives could shape global trust in carbon markets
💬 One quote: “The rules risk facilitating cowboy carbon markets at a time when the world needs a sheriff,” - Khaled Diab of Carbon Market Watch
📈 One stat: Indonesia has restored 9 million acres of drained peatland, but only 13% of the area has consistently met rewetting targets, according to government data
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