ESG Update: How Blockchain Technology Contributes to Climate Change Mitigation

8 Nov

With the recent rise of digital technology, especially the current existence of trading through Blockchain systems, cryptocurrency trading is not the only virtual phenomenon that interests digital market traders. Many global companies have already adopted long-term risk management with the standard of Environmental Social Governance, including the effort to mitigate climate change through carbon trading (cap and trade), investing in carbon credits as the result of carbon offsets and other nature-based solution activities. The growth of the carbon credit market can help the Government and companies to mitigate climate change and reduce greenhouse gas emissions as well as achieve the transition to net zero.

As we understand, based on the enhanced Nationally Determined Contribution (NDC) document, Indonesia has raised the greenhouse gas emissions target to 21.89% with its own effort and 43.20% with international cooperation. This ARMA Update will discuss possibility of embracing digital technologies, including blockchain, which may potentially improve the development of carbon trading in the country, in order to achieve the target.

Please see our Update regarding this regulation in English (here).

ESG Update: Bagaimana Teknologi Blockchain Berkontribusi pada Mitigasi Perubahan Iklim

Dengan perkembangan teknologi digital akhir-akhir ini, terutama keberadaan perdagangan melalui sistem Blockchain, perdagangan cryptocurrency bukan satu-satunya fenomena virtual yang menarik minat para pedagang pasar digital. Banyak perusahaan global telah mengadopsi manajemen risiko jangka panjang dengan standar Environmental Social Governance, termasuk upaya mitigasi perubahan iklim melalui perdagangan karbon (cap and trade), investasi dalam kredit karbon sebagai hasil dari penyeimbangan karbon dan kegiatan solusi berbasis alam lainnya. Pertumbuhan pasar kredit karbon dapat membantu Pemerintah dan perusahaan untuk memitigasi perubahan iklim dan mengurangi emisi gas rumah kaca serta mencapai transisi ke target net zero.

Sebagaimana kita ketahui, berdasarkan dokumen Kontribusi yang Ditetapkan secara Nasional (Nationally Determined Contribution atau NDC), Indonesia telah meningkatkan target emisi gas rumah kaca menjadi 21,89% tanpa syarat dan 43,20% dengan kerja sama internasional. ARMA Update ini akan membahas kemungkinan penggunaan teknologi digital, termasuk blockchain, yang berpotensi meningkatkan perkembangan perdagangan karbon di dalam negeri, untuk mencapai target.

Mohon untuk melihat Update kami atas peraturan ini dalam Bahasa Inggris (di sini).

Disclaimer:
This client update is the property of ARMA Law and intended for providing general information and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. ARMA Law has no intention to provide a specific legal advice with regard to this client update.

Authors

Authors