Will new carbon market work? Indonesia will provide first test

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• However, issues such as outdated baselines and ineffective peatland restoration efforts raise doubts about the actual climate benefits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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