Anticipating Climate Change, ASEAN Must Unite on Carbon Trading!

In an effort to anticipate climate change, ASEAN seems to be united in carbon trading.

This was revealed by Coordinating Minister for Economic Affairs Airlangga Hartanto at the ASEAN Business & Investment Summit 2023 held in Jakarta on Sunday (3/9/2023).

"It is important for all ASEAN members to work together, because climate change funds and carbon markets are very important for a sustainable future," said Airlangga, quoted from Antara.

He pointed out that Singapore and Malaysia are also working on carbon trading with different systems.

Indonesia itself, through the Financial Services Authority (OJK), has developed a policy on carbon exchanges as stipulated in POJK Number 14 of 2023 on Carbon Trading through Carbon Exchanges, which was issued last August.

In this context, ASEAN countries can work together for carbon trading.

"We dont want ASEAN to be divided by global green finance. We need collaboration with other ASEAN countries," Airlangga said.

On the other hand, he also highlighted the importance of strengthening the role of the private sector in reducing the risk of geopolitical fragmentation.

This can be done by collaboration between the public and private sectors in the development of an open, non-discriminatory, and rules-based multilateral economic architecture.

"The private sector must work together with other businesses to explore potential areas of collaboration," Airlangga said.

"The ASEAN private sector should not only stick to business models, but also maximize local economic linkages and also involve MSMEs," he continued.

This emphasizes that the private sector also needs to be actively involved by seeking new growth opportunities.