Nesting Approach to Promote Forestry Carbon Economics

The Ministry of Forestry is discussing the concept of a nesting approach as a mechanism for integrating various carbon economic value instruments in the Forest and Other Land Use ("FOLU") sector. Edo Mahendra, Principal Advisor to the Ministry of Forestry, said that a Focus Group Discussion (“FGD”) had been held on this matter.

Edo explained that nesting is an approach that allows market-based and non-market-based instruments to operate simultaneously within a single carbon management framework. These instruments include the Voluntary Carbon Market (“VCM”), labeled carbon projects, and result-based payment schemes.

“This is the concept we are currently refining. We have conducted FGDs and will continue to do so to ensure we have a robust concept for nesting,” said Edo.

The nesting concept aims to ensure that all carbon emission reduction activities in the FOLU sector are consistently recorded and managed. This is related to the significant need for FOLU Net Sink.