Carbon Markets Development: Challenges and Opportunities for Sustainable Future in Indonesia

Climate actions determine whether the world achieves the long-term goals of the Paris Agreement and to reach global peaking of greenhouse gas (GHG) emissions as soon as possible and to undertake rapid reductions thereafter in accordance with best available science. The Paris Agreement requests each country to outline and communicate their post-2020 climate actions, known as their NDCs. NDCs embody efforts by each country to reduce national emissions and adapt to the impacts of climate change. According to UN report, carbon finance is one the key implementations of achieving the NDC. Around the world, interest in carbon markets is growing –83 percent of NDCs state the intent to make use of international market mechanisms to reduce greenhouse gas emissions.1

DBS conducted knowledge sharing session on Carbon Credits and its development to a number of stakeholders to the Government of Indonesia including Ministry Of Finance, Financial Services Authority (OJK) & Ministry of Environment and Forestry (KLHK). Led by team of carbon market experts in Treasury and Markets and Institutional Banking Group from DBS Indonesia, Singapore and UK, the session touched upon the fundamental principle of carbon credits in voluntary and compliance markets and the various challenges and opportunities in developing carbon markets in Indonesia.

Head of Treasury & Markets, Bank DBS Indonesia Puneet Punj said, “Sustainability is a collective responsibility and in recent years, we have witnessed increasing interest and initiatives from many countries to develop their carbon credit markets. DBS Group and DBS Indonesia have been supporting institutions regionally through sharing of best practices and solutions to support their endeavor to achieve sustainability.”

As a purpose-driven bank, Bank DBS Indonesia actively engages and advocates institutions and corporations seeking to transition their business towards sustainability path. Our Institutional Banking Group along with Treasury & Markets (T&M) provide innovative and bespoke solutions in risk management, financing, investments and capital markets with ESG theme.

DBS’ approach to sustainability is guided by three sustainability pillars 1) Responsible Banking, 2) Responsible Business Practice and 3) Impact Beyond Banking. In 2020, the Bank launched the world’s first sustainable and transition finance framework and taxonomy. In addition, the Bank has released various reports and guidelines including Path to Net Zero which indicates 9 sector industries for decarbonization. DBS is one of the founding shareholders of Climate Impact X (CIX), a Singapore-based global carbon exchange.

More information about Treasury & Markets please visit Treasury Products & Financial Market Services | DBS Corporate Banking and about DBS’ sustainability please visit Corporate Sustainability, Sustainable Banking & Finance | DBS Corporate Banking

About DBS

DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.

Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 14 consecutive years from 2009 to 2022.

DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience.

With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.