THE RATIONALES
GREEN ECONOMY. Over the past decade, the concept of the green economy has emerged as a strategic priority for many governments. By transforming their economies into drivers of sustainability, these countries will be primed to take on the major challenges of the 21st century – from urbanization and resource scarcity to climate change and economic volatility. An inclusive green economy is one that improves human well-being and builds social equity while reducing environmental risks and scarcities. An inclusive green economy is an alternative to today’s dominant economic model, which exacerbates inequalities, encourages waste, triggers resource scarcities, and generates widespread threats to the environment and human health. In 2008, UN Environment launched the Green Economy Initiative (GEI), a programme of global research and country-level assistance designed to motivate policymakers to support environmental investments. At the UN General Assembly 2015, UN Environment published
“Uncovering pathways towards an inclusive green economy”. The document stresses concepts such as sharing, circularity, collaboration, solidarity, resilience, opportunity, and interdependence
https://www.unep.org/explore-topics/greeneconomy/why-does-green-economy-matter
THE SUSTAINABLE DEVELOPMENT GOALS (SDGs). The SDGs are a collection of 17 global objectives established by the United Nations in 2015 as part of the 2030 Agenda for Sustainable Development. These goals aim to address a broad range of interconnected global challenges, including poverty eradication, environmental sustainability, social equity, and economic growth, under the guiding principle of “leaving no one behind.” The SDGs apply universally to all countries, irrespective of their development status, and seek to promote peace,
prosperity, and the health of the planet. Each goal is further divided into specific targets—totaling 169—and measured by 232 unique indicators to track progress. Figure 1 shows the 17 goals. Key goals include combating climate change (SDG 13), and fostering global partnerships (SDG 17). The SDGs emphasize the indivisibility of sustainable development’s social, economic, and environmental dimensions, advocating for inclusive policies and practices at global, national, and local levels. Despite their non-binding nature, the SDGs have influenced global debates, policy agendas, and institutional priorities, though transformative change remains limited.
Collaborative financing, technological innovation, and a strengthened global partnership are critical for achieving these ambitious goals by 2030. As an active and committed role in the global environment, Indonesia should clarify,, ratify, and execute the green economic activities identified by the SDGs. Green infrastructure development could serve as representing the government’s commitment.
https://sdgs.un.org/goals
THE CLIMATE CHANGE AND GLOBAL WARMING. Climate change is a longterm change in the average weather patterns that have come to define
Earth’s local, regional and global climates. Indonesia is prone to this climate change phenomenon as the rise of sea level would inundate a lot of coastal areas in many islands. Figure 2 illustrates the change in global surface temperature relative to 1951-1980 average temperatures, with the year 2020 statistically tying with 2016 for hott est on record.Changes observed in Earth’s climate since the mid-20th century are driven by human activities, particularly fossil fuel burning, which incre ases heat-trapping greenhouse gas levels in Earth’s atmosphere, raising. Earth’s average surface temperature. Natural processes, which have been overwhelmed by human activities, can also contribute to
climate change.
THE CARBON TRADING. Carbon since President Joko Widodo issued trade is a market-based system in Presidential Regulation Number which carbon dioxide and other 98/2021 on the Carbon Pricing greenhouse gases are traded with Mechanism to achieve the the goal of limiting emissions. Nationally Determined Carbon Pricing is defined as a value Contribution (NDC) and for each GHG unit e mitted from Greenhouse Gas (GHG) Emission human and economic activities and Control in the National is a market-based system aimed at Development, commonly referred reducing greenhouse gases that to as the Presidential Regulation contribute to global warming, on Carbon Pricing
Figure 2: History of Global particularly carbon dioxide emitted by burning fossil fuels. It D Global and
involves selling and buying carbon credits that represent a certain amount of greenhouse gas emissions. Carbon trading allows companies or individuals to compensate for their emissions by purchasing credits from entities that remove or reduce emissions. The idea of applying a cap-and-trade solution to carbon emissions originated with the Kyoto Protocol, a United Nations treaty to mitigate climate change that took effect in 2005. At the time, the measure devised was intended to reduce overall carbon dioxide emissions to roughly 5% below 1990 levels by 2012. Indonesia has a lot of potential of and has accounted carbon trading as a part of economic initiatives. Indonesia also took part in shaping a low-emission future through its Nationally Determined Contribution (NDC) and
[1] https://www.investopedia.com/term/c/ carbontrade.asp
DEFORESTATION tropical forest loss reached 151 million ha and peaked in the 1980s and early 1990s. In 2020, Indonesia had 93.8 million ha of natural forest, extending over 50% of its land area. In 2024, it lost 261.575 ha; an increase of 4,191 ha on the previous year, which was recorded at 257.384 ha. This loss equivalent to 194 Mt of CO₂ emissions. As much as 144,000 ha of this loss was found to be within Indonesia’s official forest. Indonesian deforestation in 2024 was identified to be (Figure 3). The deforestation seems go unabated and this will significantly contribute to global warming and climate change. The rapid and massive deforestation occurred also because of massive palm oil plantation and forest fires. Brutal deforestation and illegal logging must be curbed and carbon trading could be used to do that effectively. Deforestation occurred in all regions of Indonesia, with increases in Kalimantan and Sumatra, and decreases in Sulawesi, Papua, the Moluccas, Java, and Bali and Nusa Tenggara. (Figure
