Ministry of Agriculture Targets Several Commodities for Inclusion in the Carbon Market, from Palm Oil to Horticultural Crops

The Ministry of Agriculture (“Kementan”) is drafting regulations of the minister on agricultural practices that reduce carbon emissions. Deputy Minister of Agriculture Sudaryono said that through this regulation, the government is targeting various commodities for inclusion in the carbon market, ranging from palm oil, coffee, tea, and cocoa beans to horticultural crops.

“For example, in the case of fruit crops, the fruit can serve as a source of income for farmers, while the trees themselves are recorded as carbon sinks,” he told Hukumonline.

However, Sudaryono emphasized that the use of agricultural commodities for carbon trading must not disrupt or encroach upon forest areas. According to him, the focus of developing these commodities will be directed toward utilizing vacant, uncultivated land without clearing new land in forest areas. “So it will not disrupt or convert forest areas,” he said.

In addition to regulating commodities for the carbon market, Sudaryono noted that this regulation will also promote low-emission agricultural practices through water-saving methods and rice field development. He aims to finalize the implementing regulations on carbon trading before 2027.