White Paper on Natural Capital, Communities, Carbon

Indonesia is a natural capital superpower. It was home to much of the world’s remaining rainforest, which contained a significant amount of the world’s natural assets of soil, water, air and all living things and biodiversity. It accounted for some 15% of known species on the planet and the extensive mangroves crucial to climate adaptation and resilience. Considering this, Indonesia had committed to 29% greenhouse gas emission reduction on its own and 41% with international support by 2030 under its nationally determined contributions (NDCs) of the Paris Agreement.

To achieve the 2030 NDC 41% emission reduction target, the country had a funding gap totalling US$260 billion. The need to close the funding gap required collaboration from all stakeholders, including private sector and civil society, which could be done through blended finance, private investments, technology transfers, grants, etc. For this reason, there was an urgency to clarify Indonesia’s position and philosophical compass on how it would transition its mindset to turning its invaluable but still passive natural, communities and carbon assets into productive capital, in a way that the nation and its people would protect and nurture the assets, leading to an outcome of making the country a true NCCC superpower.