B5 – Unlocking the Potential of Carbon Economic Value for Climate Action towards Indonesia’s FOLU Net Sink 2030

Session > B5 – Unlocking the Potential of Carbon Economic Value for Climate Action towards Indonesia’s FOLU Net Sink 2030

Indonesia Pavilion COP30

November 13, 2025 | 2:30 pm - 4:00 pm

About

A. Background

Indonesia has placed the forestry and other land uses (FOLU) sector at the core of its climate strategy through the FOLU Net Sink 2030 Operational Plan. This ambitious program reflects Indonesia’s commitment in its Enhanced NDC to achieve a condition where the absorption of greenhouse gases (GHG) from the forestry and other land use sector exceeds its emissions by 2030. The Plan builds on five integrated programs: (1) sustainable forest management, (2) enhancement of carbon stock, (3) biodiversity conservation, (4) peatland ecosystem restoration, and (5) law enforcement and institutional capacity strengthening.

The urgency of accelerating FOLU Net Sink 2030 stems from multiple factors. First, forests, peatlands, and mangroves serve as vital carbon sinks that, if degraded, can become significant emission sources. Second, the window of time to meet national and global climate goals is narrowing, requiring concrete and scalable actions. Third, achieving these goals must go hand-in-hand with safeguarding biodiversity, ensuring social equity, and providing sustainable livelihoods for communities, especially Indigenous Peoples and Local Communities (IPLCs).

A critical enabling factor for acceleration is Nilai Ekonomi Karbon (NEK) or Carbon Economic Value. NEK provides Indonesia with a policy and financial instrument to transform emission reduction and sequestration into economic opportunities. Through carbon pricing, emissions trading, results-based payments, and innovative mechanisms, NEK is designed to mobilize both domestic and international climate finance, support green investment, and ensure fair benefit-sharing for stakeholders. By integrating NEK into the FOLU Net Sink 2030 program, Indonesia could take a lead in linking climate ambition with sustainable development pathways.

B. Objective and Output

The talkshow session aims to:

Present Indonesia’s strategy and progress in accelerating FOLU Net Sink 2030 implementation.
Showcase the role of NEK as a catalyst for mobilizing climate finance and private sector engagement.
Highlight inclusive approaches that integrate IPLCs, civil society, and gender-responsive practices.
Facilitate knowledge exchange and promote global partnerships for forest-based climate solutions.

Expected Output

Consolidated international narrative on Indonesia’s FOLU Net Sink 2030 and NEK framework.
Increased visibility of Indonesia’s leadership in operationalizing carbon governance.
Strengthened collaboration and resource mobilization opportunities with bilateral and multilateral partners.
Shared lessons and innovations applicable for other developing countries.

C. Target Audience

The session will engage:

COP30 negotiators and delegates from Parties,
International organizations and climate finance institutions,
Private sector actors and carbon market participants,
Civil society organizations, academia, and research institutions,
Indigenous Peoples and Local Communities (IPLCs),
General COP participants interested in climate solutions.

D. Session Format

The session will be held in an interactive talkshow format lasting 80 minutes, structured as follows:

Opening (5 minutes).
Keynote Intervention (10 minutes)
Talkshow Panel (45 minutes) : 4 panelists from government, finance, development partners, and private sector (gender- balanced).
Interactive Discussion (15 minutes) : Audience Q&A and open exchange.
Closing (5 minutes) : Moderator’s synthesis of key takeaways.