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EU's Effort to Reduce Bureaucracy On February 26, 2025, the European Commission launched the Omnibus Package. This important initiative aims to simplify sustainability rules and cut down on red tape. This package focuses on key laws such as the Corporate Sustainability Due Diligence Directive (CSDDD), Corporate Sustainability Reporting Directive (CSRD), and EU Taxonomy. The Commission seeks to simplify these frameworks. This will make it easier for businesses to comply with regulations and help the EU stay competitive on a global scale. Key Changes in the Omnibus Package The Omnibus package introduces significant changes to central sustainability directives. The CSDDD, initially applying to entire value chains, will now be limited to direct suppliers only. The implementation has been pushed back from 2027 to 2028. Also, the rules for civil liability and annual due diligence reviews have been removed or extended. The CSRD has also undergone significant revisions. Previously applied to large companies with 250+ employees, it will now cover only businesses with 1,000+ employees. The start date was set for 2025, but reporting obligations are now delayed by two years. Also, sustainability disclosure requirements have been cut by 70%. Companies are no longer required to collect sustainability data from suppliers that have fewer than 1,000 employees. This change reduces the burden of reporting. The EU Taxonomy has changed. Now, only companies with at least 1,00 0 employees and a turnover of €450 million or more must comply. Banks can now calculate Green Asset Ratios (GAR) more flexibly. They can exclude non-CSRD-covered companies. Also, the "Do No Significant Harm" (DNSH) criteria are simpler now. Impact on Businesses The deregulation efforts are expected to bring significant benefits, particularly for large corporations, SMEs, and financial institutions. Large companies will enjoy greater flexibility in compliance and a reduced reporting burden. SMEs used to struggle with complex regulations. Now, they are exempt from many obligations. This change makes it easier for them to comply with sustainability rules. Financial institutions will also benefit as they gain more flexibility in sustainable investment calculations and reporting. What’s Next? The European Commission’s proposal for the Omnibus package is not final and must be approved by the European Parliament and the Council of the European Union. These legislative bodies will discuss and refine the proposals before implementation. Companies should prepare by: Reviewing their compliance strategies –   to align with the revised regulations. Engaging in stakeholder discussions – to help shape the new rules. Consulting experts – to understand how the changes affect their business. The Omnibus package signals a significant change in the EU's sustainability regulations. It aims to balance business-friendly policies with strong environmental and ethical commitments. As the situation evolves, companies must stay informed and ready to adapt.

Time is ticking, and in just a few days—on April 2, 2025—the Financial Conduct Authority (FCA)  in the UK will officially implement new rules under the Sustainability Disclosure Requirements (SDR) . These regulations are set to be a major milestone in the global fight against greenwashing , demanding higher transparency in sustainable investments. For financial industry players, this is not just another regulatory update—it is a game-changer  that will redefine how sustainable investment products are structured and marketed. Four New Labels: No More Unsubstantiated Sustainability Claims The FCA regulations introduce four sustainability labels  designed to help investors assess the credibility of ESG investment products. The four labels are: Sustainability Mixed Goals  – for investments combining multiple sustainability approaches. Sustainability Improvers  – for investments targeting progressive improvements in environmental and social factors. Sustainability Impact  – for investments making a tangible environmental or social impact. Sustainability Focus  – for investments where at least 70% of assets are sustainability-focused. Through this framework, the FCA ensures that there is no longer room for unverified sustainability claims . Any investment carrying an ESG label must have a transparent, data-driven, and verifiable methodology. Significant Impact on the Investment Industry For the financial industry, these new regulations present a real test. Many investment firms are now racing against time to ensure their products meet these new criteria. The FCA rules require fund managers to clearly define their sustainability strategies and provide more transparent reporting . Some investment firms have already begun adjusting their portfolios to align with one of the four FCA labels. This indicates that these new regulations are not just a formality but a transformative step that will impact the entire sustainable investment ecosystem . The Fall of Greenwashing? Greenwashing has been a persistent issue in the investment world. Many financial products claim to be “eco-friendly” or “sustainable” to attract investors, even when they have little to no actual environmental or social impact. The FCA aims to end this practice by implementing stricter regulations and a clearer labelling system. However, is this enough to completely eliminate greenwashing? While this is a significant step forward, the global financial industry must still work harder to ensure that sustainable investments truly drive meaningful change. Conclusion: New Standards, A New Era With these regulations set to take effect in less than a month, financial industry players can no longer ignore the urgency of this shift. Sustainability standards are no longer just promises—they are now obligations that must be met with transparency and accountability . Investors now have better tools to assess financial products, while fund managers must adjust their strategies to stay compliant. A new era of sustainable investing has begun, and the countdown to FCA’s regulations is a clear signal that greenwashing no longer has a place in the future of finance.

What is Social Compliance? Social compliance  refers to the measures and policies implemented by companies to safeguard workers' rights, create a safe working environment, and uphold fairness throughout the supply chain. Beyond merely complying with labour laws, social compliance also encompasses corporate social responsibility toward local communities and environmental considerations. In today's business landscape, social compliance has become an essential component of Corporate Social Responsibility (CSR) . Companies that embrace social compliance are committed to ethical business practices, not only within their own operations but also across their entire supply and distribution networks. As a result, social compliance serves as an ethical standard that ensures worker protection and environmental sustainability. Principles of Social Compliance Social compliance is based on a set of principles designed to uphold fair labour practices across various industries. These principles include: Providing safe and decent working conditions for employees Respecting workers' rights, including the freedom of association Preventing all forms of discrimination Eliminating child labour and forced labour Ensuring fair wages in accordance with industry standards and applicable laws Guaranteeing that raw materials and production processes do not harm the environment Complying with labour regulations in every operational region Social Compliance Audit Many companies operate global supply chains spanning multiple countries, making it increasingly complex to monitor ethical labour standards. S ocial compliance audits play a crucial role in ensuring that suppliers and business partners adhere to established standards. These audits are conducted by third-party organizations that assess a company's compliance with various labour and environmental aspects. Some of the most commonly used social compliance audits include: SA8000  – A standard developed by Social Accountability International (SAI) to protect workers from discrimination and child exploitation while ensuring fair wages and a safe working environment. Ethical Trading Initiative (ETI) Base Code  – A framework that guides companies in safeguarding workers' rights and improving social conditions across global supply chains. Corporate Sustainability Reporting Directive (CSRD)  – While not an audit, CSRD serves as a key reference for companies to disclose their compliance with social and sustainability standards. The Relationship Between Social Compliance and ILO Standards Many companies adopt labo u r standards set by the International Labour Organization (ILO)  to ensure that their employment policies align with global best practices. These principles serve as a foundation for ethical labour practices and are widely recognized across industries. Some of the key principles derived from ILO standards include: Freedom of association and the right to collective bargaining Elimination of forced labour and child labour Equal opportunities and the eradication of workplace discrimination Fair and equal remuneration for work of equal value Ensuring a safe and healthy working environment for all employees Recognising workers' rights to voice concerns and participate in decision-making processes By integrating these principles into their policies, companies reinforce their commitment to ethical labour practices and contribute to a more sustainable and responsible global workforce. The Benefits of Social Compliance for Businesses Implementing social compliance  offers numerous advantages for companies, both in the short and long term. Some of the key benefits include: Enhancing corporate reputation  – Consumers are increasingly aware of responsible business practices, making them more likely to support brands that adhere to social and environmental standards. Strengthening relationships with suppliers and stakeholders  – Compliance with social standards fosters a more transparent and sustainable supply chain. Reducing legal and reputational risks  – Ensuring compliance with labour laws helps businesses avoid legal penalties and negative media exposure. Improving competitiveness and market access  – Many global corporations and investors require their suppliers to meet social compliance standards as a prerequisite for collaboration. Supporting long-term business sustainability  – Companies that prioritise worker welfare and environmental responsibility tend to be more stable and resilient in their operations. How to Implement Social Compliance in Business To ensure adherence to social compliance standards, companies can take the following steps: Develop a code of ethics and compliance policies  – Establish clear guidelines on labour standards, workers' rights, workplace safety, and environmental responsibilities. Train employees and management  – Raise awareness and understanding of social compliance across all levels of the organization through regular training programs. Conduct internal and external audits  – Periodic assessments by internal teams and third-party auditors help ensure compliance policies are effectively implemented. Implement reporting and monitoring systems  – Provide employees with safe channels to report violations without fear of retaliation. Commit to continuous improvement  – Companies should regularly update their policies and practices to align with evolving regulations and global trends. Conclusion Social compliance is more than just following regulations; it reflects a company's commitment to ethical business practices and social responsibility . By adopting relevant standards and certifications, businesses can build a more sustainable  and responsible  operation, enhancing their reputation while creating a positive impact on workers and society . In an era of increased transparency, social compliance is no longer optional—it is a key factor for companies looking to stay competitive in the global market .

Carbon Issues in 2025 As we approach 2025, the issue of carbon emissions has become a central focus in the global agenda. The undeniable impacts of climate change, combined with international pressure and national commitments to achieve net-zero emissions, have made carbon reduction a critical priority. This article explores the latest developments in carbon-related policies, the challenges faced, and the opportunities available to create a more sustainable future. Additionally, it highlights Indonesia's role, particularly through the launch of international carbon trading via the Indonesia Carbon Exchange (IDXCarbon), as a significant step in reducing carbon emissions. 1. Recent Developments in Global Carbon Policies By 2025, many countries are expected to have implemented stricter carbon policies. Key developments include: Implementation of the EU’s Carbon Border Adjustment Mechanism (CBAM) : Starting in 2026, the EU will impose carbon taxes on imports of goods with high carbon footprints. This move pressures exporting countries, including Indonesia, to accelerate their transition to clean energy. Net-Zero Commitments : Over 130 countries have committed to achieving net-zero emissions by mid-century. The year 2025 serves as a crucial milestone for evaluating their progress. COP30 Climate Summit : The 2025 global climate conference is expected to be a pivotal moment for assessing nations' commitments to reducing emissions. 2. Challenges in Reducing Carbon Emissions Despite significant progress, several challenges remain: Uneven Energy Transition : Developing countries still rely heavily on fossil fuels due to technological and financial limitations. Deforestation and Land Degradation : Despite reforestation efforts, deforestation rates remain high in some regions, particularly for agricultural and plantation expansion. Dependence on Carbon-Intensive Industries : Sectors such as transportation, manufacturing, and mining continue to be major contributors to carbon emissions. 3. Opportunities and Innovations in Carbon Management Amid these challenges, there are numerous opportunities and innovations: Carbon Capture and Storage (CCS) Technology : Advances in CCS technology offer promising solutions for reducing emissions from heavy industries. Carbon Markets and Trading : Carbon trading mechanisms are maturing, providing economic incentives for companies to cut emissions. Renewable Energy : The declining costs of solar and wind energy make them increasingly competitive with fossil fuels. Green Finance : Investments in sustainable projects are growing, supported by financial instruments such as green bonds and sustainability-linked loans. 4. Indonesia’s Role in the Carbon Issue As home to one of the world’s largest tropical forests, Indonesia plays a crucial role in global carbon reduction efforts. Key initiatives include: Implementation of Carbon Economic Value (NEK) : This policy promotes emission reductions through market-based mechanisms. Peatland and Mangrove Restoration : Programs like the Peatland and Mangrove Restoration Agency (BRGM) aim to restore ecosystems that serve as carbon sinks. Transition to Clean Energy : The government targets a 23% renewable energy mix by 2025, though infrastructure and funding challenges persist. 5. IDX Carbon: Achievements and Progress in 2025 In 2025, Indonesia took a significant step forward by launching international carbon trading through the Indonesia Carbon Exchange (IDXCarbon). On January 20, 2025, Indonesia officially began international carbon trading via IDXCarbon, aligning with its Nationally Determined Contribution (NDC) targets and implementing Articles 6.2 and 6.4 of the Paris Agreement. a. Growing Trading Volume As of January 17, 2025, the total trading volume on IDXCarbon reached 1,131,000 tons of CO₂ equivalent (tCO₂e), with a transaction value of Rp56.86 billion. This growth reflects increasing market enthusiasm for carbon trading mechanisms. b. Registered Carbon Projects In early 2025, IDXCarbon added three new Certified Emission Reduction (CER) projects, including the PLTGU Priok Block 4 project (verified emission reduction of 763,653 tCO₂e, vintage year 2021), the PLTGU Grati Block 2 project (407,390 tCO₂e, vintage year 2021), and the PLN NP UP Muara Tawar power plant conversion project (30,000 tCO₂e, vintage year 2023). c. Challenges in Regulation and Taxation Despite its progress, IDXCarbon faces challenges, particularly in regulatory harmonization and taxation. Ratna Juwita Sari, a member of the Indonesian House of Representatives’ Commission XII, emphasized the need for legal certainty and improved tax regulations to support the sector’s growth. Additionally, the acceleration of renewable energy legislation is expected to provide a stronger legal foundation for the carbon trading and renewable energy sectors. d. Implementation of Carbon Tax The Indonesian government has also introduced a carbon tax as part of its efforts to reduce emissions and promote renewable energy. The tax applies to taxpayers who purchase carbon-containing goods or engage in activities that produce carbon emissions. The carbon tax rate is set at a minimum of Rp30 per kilogram of CO₂ equivalent (CO₂e). By 2025, the government plans to fully implement the carbon tax and expand its coverage across more sectors. e. Challenges in the Mining Sector Carbon emissions remain a significant challenge in the mining industry. The Indonesian Mining Services Association (Aspindo) has urged the sector to intensify efforts to reduce emissions and achieve sustainability targets. Conclusion As 2025 approaches, the global carbon issue remains at the forefront of efforts to combat climate change. While significant challenges persist, there are ample opportunities for innovation and collaboration. Indonesia, as part of the global community, must strengthen its commitments and actions to contribute to carbon reduction. The launch of IDXCarbon and the implementation of a carbon tax demonstrate the country’s proactive approach to leveraging market mechanisms and fiscal policies for a low-carbon economy. With concrete steps and multi-stakeholder collaboration, a greener and more sustainable future is within reach. References: IPCC (Intergovernmental Panel on Climate Change) 2023 Report EU Carbon Border Adjustment Mechanism (CBAM) Policy Indonesia’s Mid-Term National Development Plan (RPJMN) 2025 International Energy Agency (IEA) Data on Energy Transition berkas.DPR.go.id Antaranews.com EmediaDPR.go.id MediaKeuangan.Kemenkeu.go.id Teropongbisnis.id

Introduction: The Urgency of ASC & MSC in the Fisheries Industry The aquaculture and fisheries industry is under increasing scrutiny to ensure the sustainability of marine resources and the well-being of communities that depend on them. Two key certification bodies leading the charge in responsible seafood production are the Aquaculture Stewardship Council (ASC)  and the Marine Stewardship Council (MSC) . Recent updates to these standards introduce significant changes aimed at enhancing transparency, environmental sustainability, and social responsibility across the aquaculture and fisheries supply chain. This article explores the key updates in the new ASC Farm Standard , which consolidates species-specific standards into a unified framework, and MSC’s latest initiative  to accelerate progress in sustainable fishing practices. ASC’s New Farm Standard: A Unified Approach to Aquaculture Sustainability ASC has integrated twelve species-specific standards into a single ASC Farm Standard , providing a more structured and consistent approach across all certified aquaculture sectors. This consolidation enhances clarity and facilitates the inclusion of new species into the ASC program. Four Core Principles of the ASC Farm Standard The new standard is built around four key principles: Farm Management  – Establishes governance and legal compliance requirements for aquaculture units. Environmental Responsibility  – Covers measures to mitigate aquaculture’s impact on ecosystems, water quality, and wildlife. Social Responsibility  – Ensures workers' rights, fair wages, and ethical working conditions. Fish Welfare  – Implements stringent animal health and welfare guidelines. Implementation Timeline 2016-2022 : Stakeholder consultations. 2023 : Pilot testing and additional consultations. 2024 : Finalization of the standard. 2025 : Full implementation with a transition period. These updates not only strengthen regulations but also provide clearer guidance for aquaculture farms to adopt more sustainable practices. MSC & MarinTrust Partnership: Strengthening the Marine Ingredient Supply Chain To improve efficiency and transparency in the marine ingredient supply chain, Marine Stewardship Council (MSC) and MarinTrust  have signed a Memorandum of Understanding (MoU). This agreement aims to reduce audit duplication and create synergies between their certification programs. Impact of the MoU on the Industry Mutual Recognition:  MSC and MarinTrust will explore ways to align certification requirements for improved efficiency. Streamlined Audits:  Reducing complexity and redundancy in auditing processes for marine ingredient producers. Increased Transparency:  Enhancing visibility into responsible sourcing of marine ingredients. This collaboration is crucial in meeting the growing demand for responsibly sourced marine ingredients and strengthening global certification standards. MSC’s New Initiative: The Fisheries Improvement Program MSC has launched the Fisheries Improvement Program  to accelerate the transition of global fisheries towards sustainability. The program is designed to help fisheries that do not yet meet MSC standards by providing structured support and incentives to improve their practices over a five-year period. Key Objectives of the Program Encouraging fisheries to enhance sustainability practices. Implementing independent verification to track measurable improvements. Ensuring that only fully compliant fisheries gain access to MSC-certified supply chains. With over 38% of global fish stocks classified as overfished, this program represents a critical step in addressing one of the most pressing challenges in the fisheries industry. Conclusion: The Future of Sustainable Seafood The updates in the ASC Farm Standard , the MSC-MarinTrust partnership , and the launch of MSC’s Fisheries Improvement Program  highlight the industry’s increasing commitment to sustainability. These initiatives not only contribute to ocean health but also secure the long-term viability of communities dependent on fisheries and aquaculture. Industry stakeholders, governments, and consumers all play a vital role in supporting these initiatives by choosing ASC- and MSC-certified products and advocating for more widespread adoption of sustainable practices throughout the global seafood supply chain.

ISCC EU update by the European Commission On January 2, 2025, the International Sustainability and Carbon Certification (ISCC) announced that the European Commission has officially recognized ISCC EU for certifying Renewable Fuels of Non-Biological Origin (RFNBOs), Renewable Carbon Fuels (RCFs), and forest biomass. This recognition allows ISCC EU to expand its certification scope, covering renewable fuels not derived from biomass and forest biomass. This update reflects ISCC's commitment to global sustainability by aligning with evolving regulations and market needs. ( iscc-system.org ) Impact Analysis and Implementation 1. Impact on the Renewable Energy Industry The ISCC recognition for RFNBOs and RCFs has a significant impact on the renewable energy industry. RFNBOs, such as green hydrogen, and RCFs, which are produced from non-biological materials, provide solutions for decarbonizing the transportation and energy sectors. With ISCC certification, these fuels can be globally recognized as compliant with strict sustainability standards. Example of Implementation: A company in Germany producing green hydrogen can utilize ISCC EU certification to demonstrate that its products meet EU requirements. This not only enhances the company’s credibility but also unlocks export opportunities to international markets prioritizing eco-friendly fuels. 2. Company Readiness for the EUDR (EU Deforestation Regulation) The enforcement of the European Union's Regulation on Deforestation-Free Products (EUDR) on December 30, 2025, presents new challenges for companies relying on biomass. ISCC supports these companies by providing certification that ensures their biomass is not linked to illegal deforestation. Impact: Biomass producers in Indonesia can leverage ISCC certification to prove that their raw materials come from sustainable sources. This allows them to maintain access to the European market despite the increasingly stringent EUDR regulations. Value-Added Insights and Discussion Why Is This Recognition Important? The recognition of ISCC EU for RFNBOs and RCFs represents a significant step forward in the global transition to a low-carbon economy. It highlights how international sustainability standards can adapt to new regulatory requirements, such as the EUDR. However, challenges remain. For instance, not all companies have easy access to the technology needed to produce RFNBOs or forest biomass that meets ISCC standards. Will such regulations restrict market access for smaller companies? This discussion is critical to ensuring that sustainability is not just an obligation for large corporations but also accessible to businesses of all sizes. Opportunities for Collaboration This ISCC update also opens doors for collaboration between global and local companies. For example, European companies can partner with biomass suppliers in Southeast Asia to ensure that their supply chains comply with the EUDR. Such partnerships not only promote sustainability but also strengthen international business relationships. Next Steps In addition to hosting a virtual technical stakeholder meeting on February 6, 2025, ISCC has scheduled an online RFNBOs training session on March 6, 2025. This training will provide practical guidance for auditors and companies seeking compliance with the new ISCC standards. ( iscc-system.org ) For companies aiming to stay competitive in the global market, obtaining ISCC certification is becoming increasingly essential. By adapting to these developments, businesses can ensure regulatory compliance while contributing to global sustainability efforts.

Sustainable Aquaculture: ASC Feed Aquaculture is rapidly emerging as one of the world’s fastest-growing sources of protein. However, this growth comes with significant challenges, particularly in ensuring sustainable practices in fish feed production. The ASC Feed Standard is redefining responsible aquaculture feed to support environmental and social sustainability. This article delves into the key aspects of the ASC Feed Standard and why its implementation is critical as we approach the 2025 deadline. Why Responsible Feed Matters More Than Ever Over 70% of farmed seafood depends on feed, making it a cornerstone of aquaculture. However, feed production accounts for up to 90% of the environmental impact of aquaculture, driven by: Deforestation and land conversion for feed raw materials. Unsustainable fisheries and agricultural practices. Complex, global supply chains with varying impacts on sustainability. With more than 58 million people employed in fisheries and aquaculture globally in 2020 (FAO SOFIA 2022), ensuring that feed supply chains promote social, economic, and environmental sustainability has never been more urgent. 2025 Deadline: Why Action is Needed Now The ASC Feed Standard mandates that all ASC-certified farms transition to ASC-compliant feed from certified feed mills by October 31, 2025 . Failure to meet this deadline could result in the loss of ASC certification. To stay ahead, stakeholders must: Feed manufacturers: Begin the certification process immediately. Farm operators: Partner with ASC-certified feed suppliers to ensure compliance. Innovating Feed for Sustainability The ASC Feed Standard sets rigorous criteria to ensure feed ingredients are not only responsibly sourced but also meet the nutritional and welfare needs of farmed species. Key requirements include: Plant-Based Ingredients : Must be free from deforestation and land conversion risks. Marine Ingredients : Must be sourced from fisheries that demonstrate progressive improvements in sustainability, transitioning from basic Fishery Improvement Projects (FIPs) to MSC certification. Social Compliance : Feed supply chains must uphold human rights and eliminate forced labor, child labor, and other unethical practices. ASC Feed’s Vision for the Future Under its "Feed for the Future" mission, the ASC Feed Standard emphasizes transparency and collaboration throughout the feed supply chain. Highlights include: Risk assessments for all feed ingredients exceeding 1% inclusion in feed formulations. Certified feed mills must report energy use, greenhouse gas emissions, and set targets for efficiency and renewable energy adoption. Opportunities and Challenges for Stakeholders Adopting the ASC Feed Standard offers significant benefits: Feed Manufacturers : Gain credibility and access to global markets. Farm Operators : Secure high-quality, sustainable feed that aligns with certification requirements. Consumers : Enjoy greater assurance that the seafood they purchase meets high sustainability standards. However, smaller feed producers may face challenges in meeting the standard’s stringent requirements. Collaborative approaches and industry support will be essential to overcome these hurdles. Conclusion: Paving the Way for a Better Future The ASC Feed Standard is a game-changer for the aquaculture industry, ensuring it meets global food demands while protecting the planet and human rights. With the 2025 deadline looming, now is the time for all stakeholders to act decisively and embrace sustainable practices that safeguard aquaculture's future.

I-Sea Impact Business Day On January 22, 2025, Peterson Solutions Indonesia proudly participated in the I-SEA Impact Business Days , the pinnacle event of the I-SEA program aimed at accelerating social business development. The event was organized by Instellar  and IKEA Social Entrepreneurship  at Veranda Hotel, South Jakarta. I-SEA Impact Business Days  serves as a platform where ten social enterprises accelerated by the I-SEA program share their experiences, stories, and inspirations in building impactful social businesses. The event is tailored for social entrepreneurs, corporates, investors, ecosystem enablers, and individuals passionate about exploring sustainable and socially responsible business practices while seeking collaboration opportunities. Collaboration-Driven Agenda During the panel discussion, two prominent speakers, Hugo Verwayen  (CEO and Co-founder of PasarMIKRO) and Raushanfikr Qhaumy  (Chief Representative of IKEA Supply AG), shared their insights on social business collaboration. Peterson Solutions Indonesia took this opportunity to engage in 1-on-1 business matchmaking sessions  with several attending social enterprises. Through guided discussions, we explored potential collaborations that could support sustainability initiatives both in business and social aspects. Valuable Insights from Social Enterprises The I-SEA program aims to empower social enterprises to create meaningful impacts in communities through collaborative support from relevant ecosystem players. Interacting with the I-SEA Changemakers provided valuable insights into integrating business approaches with sustainability and social impact. As a consultancy firm committed to sustainability, Peterson Solutions Indonesia saw this event as a strategic platform to expand networks and identify new collaboration opportunities. Our presence at this event also underscored our dedication to supporting responsible and innovative businesses in Indonesia. The Future of Collaboration With events like I-SEA Impact Business Days, Peterson Solutions Indonesia is optimistic about the future of sustainability and cross-sector collaboration. We believe that close cooperation among corporates, social enterprises, and ecosystem players is key to creating solutions that positively impact society and the environment.

US Decision to Withdraw from the Paris Climate Agreement On Monday, January 20, 2025, newly inaugurated President Donald Trump announced that the United States would be withdrawing from the Paris Climate Agreement. This decision was made in front of his supporters gathered at the Capital One Arena in Washington, where Trump signed an executive order officially ending US participation in the international pact. Trump stated that the agreement was unfair and one-sided, emphasizing that the US would not sacrifice its industries while countries like China continue to pollute without consequences. History of United States Withdrawal from Paris Climate Agreement This is not the first time Trump has taken such a step. In his first term as president in 2017, Trump also pulled the US out of the Paris Agreement. However, President Joe Biden reversed this decision in 2021, bringing the US back into the agreement. This second withdrawal has reignited discussions about the US's commitment to addressing climate change on the global stage. The Paris Climate Agreement and Its Impact The Paris Climate Agreement aims to limit global warming to 1.5 degrees Celsius above pre-industrial levels by significantly reducing greenhouse gas emissions. This will prevent the harmful effects of climate change, such as extreme heat waves, floods, and ecosystem destruction. With this withdrawal, the US will join several other countries that have already opted out of the agreement, including Iran, Libya, and Yemen. Trump Focuses on Boosting US Energy Industry Trump's decision to withdraw from the agreement is closely tied to his pro-industry energy policy. He is committed to increasing US oil and gas production, including through methods like hydraulic fracturing (fracking), which has significant environmental impacts. Under this policy, Trump has also rolled back regulations imposed by previous administrations to limit greenhouse gas emissions. Global Impact of the US Withdrawal The US withdrawal from the Paris Agreement is likely to further hinder global efforts to reduce emissions and combat climate change. Paul Watkinson, a former negotiator for the Paris Agreement, stated that this move will make it more difficult to achieve emission reduction targets, especially given the US's position as the second-largest greenhouse gas emitter in the world after China. Additionally, a UN report shows that if emissions are not curtailed, global temperatures could rise by as much as 3.1 degrees Celsius by the end of the century, leading to severe consequences such as more frequent and destructive extreme weather events. Comparing Trump’s Policy with Joe Biden’s Approach Trump's policy stands in stark contrast to that of President Joe Biden, who is committed to leading global efforts to address climate change by reducing reliance on fossil fuels and investing in renewable energy. In contrast, Trump focuses on strengthening the economy by supporting the energy industry and rolling back environmental regulations. This policy divergence adds to the tension in US climate policy and impacts the country's role in international climate efforts. Global Challenges Following Trump’s Decision The US withdrawal from the Paris Agreement presents a significant challenge to global efforts to combat climate change. While several countries remain committed to meeting emission reduction targets, the role of major countries like the US is crucial in mitigating the effects of climate change. As the second-largest emitter of greenhouse gases, this decision could worsen the ongoing climate crisis and impede progress toward a sustainable future.

Indonesian Carbon Exchange Indonesia has marked a historic milestone with the official launch of its international carbon trading platform through the Indonesian Carbon Exchange (IDXCarbon) . The initiative was inaugurated on Monday, January 20, 2025, at the Indonesia Stock Exchange (IDX) building. This move aims to bolster Indonesia’s position in the global carbon market while supporting efforts to combat climate change. This launch aligns with the regulatory framework established by Presidential Regulation (Perpres) No. 98 of 2021  and Ministerial Regulation (Permen) of Environment and Forestry (LHK) No. 21 of 2022 , which set out mechanisms for authorizing carbon credits to be traded internationally. Iman Rachman, President Director of the IDX, described this event as a pivotal moment for Indonesia. “Today marks a historic milestone in our efforts to address climate change. The launch of Indonesia's international carbon trading initiative demonstrates our commitment to making a significant contribution to global targets,” Iman said during his opening remarks. Progress in Indonesia’s Carbon Market Before venturing into international markets, Indonesia’s carbon trading activities were limited to domestic transactions. Despite being in its early stages, the growth has been promising. In 2023, there were only 16 registered participants. However, by the end of 2024, this number surged to 104 participants. Another notable achievement was the cumulative trade volume of 1 million tons of carbon . A significant portion—83% of the total trade volume—came from contributions by IDX-listed companies and their subsidiaries. Strengthening Global Commitments The launch of the International Carbon Exchange also underscores Indonesia's dedication to implementing Article 6 of the Paris Agreement . Additionally, it seeks to accelerate progress on the country’s 2nd Nationally Determined Contribution (NDC) , which is scheduled for submission by February 10, 2025. The government has also enhanced key elements of the carbon ecosystem, such as the National Registry System (SRN) , mechanisms for Measurement, Reporting, and Verification (MRV) , and the issuance of Greenhouse Gas Emission Reduction Certificates (SPE-GRK) . Challenges and Opportunities While entering the international carbon market is a significant step, challenges remain, particularly in increasing the participation of businesses and stakeholders. However, optimism runs high as this initiative has the potential to attract global interest and become a catalyst for substantial greenhouse gas emission reductions. With this bold move, Indonesia is not only solidifying its position in the global carbon trading landscape but also demonstrating its leadership and commitment to advancing sustainability on an international scale.

The year 2025 brings a series of significant opportunities and challenges for global sustainability efforts. With various agendas poised to reshape climate policies, this year stands as a pivotal moment in addressing the environmental crisis. Collaborative efforts among nations, industries, and global communities are essential in charting the course for a sustainable future. Strengthening Commitments Amid Uncertainty In February 2025, countries will submit updates to their Nationally Determined Contributions (NDCs) under the Paris Agreement framework. This step aims to ensure that the world stays on track to limit global temperature rise to 1.5 degrees Celsius. However, the challenge lies not only in written commitments but also in each nation's ability to achieve these ambitious targets. Numerous national initiatives have been introduced, such as energy transition policies in developing nations, reforestation programs for degraded forests, and the development of renewable energy technologies. Nonetheless, funding gaps for these sustainability projects remain a significant barrier, particularly for developing countries facing the brunt of climate change impacts. Technology and Data: Catalysts for Green Transformation Technology is increasingly becoming a key ally in sustainability. In May 2025, MicroCarb, Europe’s first satellite dedicated to measuring carbon dioxide emissions, will launch. MicroCarb's data is expected to provide detailed and accurate data to support global mitigation efforts. It will help countries map their emissions and identify sectors requiring urgent intervention. Additionally, AI and Internet of Things (IoT)-based technologies are continuously developed to monitor deforestation, detect pollution and optimize energy use across sectors. For example, in agriculture, smart technologies now enable more efficient land management, reducing waste and boosting productivity without harming surrounding ecosystems. However, challenges persist in adopting these technologies, particularly regarding accessibility for developing countries and training local workforces to operate tech-based systems effectively. Biodiversity: A Critical Moment for Nature Global biodiversity is at a critical juncture, with many species facing extinction risks due to human activities. The second part of COP16 in Rome, Italy, will serve as a vital platform for advocating equitable funding mechanisms for biodiversity conservation. The agenda aims to accelerate efforts to achieve the target of protecting 30% of the world’s land and oceans by 2030 (30x30). To meet this goal, developed nations are expected to contribute more significantly through mechanisms such as the Global Biodiversity Fund. This approach includes investments in habitat conservation, protected area management, and engaging local communities in preserving their environments. Circular Economy: Addressing the Plastic Crisis Plastic pollution remains a pressing issue in 2025. The fifth session of the Intergovernmental Negotiating Committee (INC-5) in Busan, South Korea, held at the end of 2024, marked a crucial milestone in formulating a global agreement to combat plastic pollution. The negotiations focus on adopting circular economy principles as a long-term solution. The circular economy aims to reduce single-use plastic production, enhance recycling efficiency, and promote alternative eco-friendly materials. Key discussion points include implementing global standards for plastic waste management, enforcing Extended Producer Responsibility (EPR), and providing financial and technical support for developing countries. While the negotiations in Busan made significant progress, no final consensus had been reached by December 2024. Consequently, an additional session is scheduled for mid-2025 to finalize the agreement. With plastic production projected to double by 2050, the success of this agreement is crucial to preventing severe impacts on global ecosystems. Adapting to Increasing Extremes Increasingly frequent extreme weather events are a stark reminder of the realities of climate change. By 2025, investing in disaster-resilient infrastructure will be a major focus. Restoring wetlands, building storm-resistant homes, and better water management are some of the concrete steps countries are taking to increase their resilience to disasters. Small island nations, such as the Maldives and Tuvalu, are at the forefront of these adaptation efforts. With the threat of rising sea levels growing, they have launched ambitious projects to protect their coastlines, including building sea walls and managing mangroves. Toward COP30: A New Milestone The highlight of the year will be COP30 in Belém, Brazil, which marks the ten-year evaluation of the Paris Agreement. COP30 offers countries the chance to reaffirm their commitment to long-term climate targets while introducing more ambitious approaches. Brazil, as the host, has demonstrated strong leadership in reducing Amazon deforestation to its lowest level in a decade. This effort has garnered widespread international support, with hopes that similar actions can be adopted by other nations with extensive tropical forests. COP30 will also address the need for more transparent and effective carbon market mechanisms to ensure that carbon trading delivers tangible climate benefits. Reflection and Hope 2025 Sustainability Despite the daunting challenges of 2025, the opportunities to advance are significant. This is not just about averting disaster but about creating a better future for generations to come. Success depends on global collaboration, technological innovation, and collective awareness of sustainability's importance. This year will go down in history—either as a moment of great transformation or a year of missed opportunities. The time to act is now.

Director General of Foreign Trade, Ministry of Trade, Isy Karim Background of the Permendag 2/2025 In early 2025, the Indonesian Ministry of Trade issued Regulation No. 2 of 2025 (Permendag 2/2025), updating the provisions on the export of palm oil derivative products. The policy aims to strengthen oversight of products like Palm Oil Mill Effluent (POME), High Acid Palm Oil Residue (HAPOR), and Used Cooking Oil (UCO). Primary Objectives This regulation seeks to: Ensure domestic raw material availability, especially for the "people's cooking oil" program. Support the implementation of 40% palm oil-based biodiesel (B40), which aligns with the government's commitment to reducing carbon emissions. Key Points of the Policy Stringent Export Regulation : Exporters must secure export permits through the INATRADE system, accompanied by documents like a Taxpayer Identification Number and Business Identification Number (NIB). Interagency Synchronization : Coordination among ministries determines the allocation of palm oil derivative exports. Decisions are made through interagency meetings involving relevant institutions. Export Realization Reporting : Exporters must submit monthly reports detailing realized and unrealized exports. Penalties for Non-compliance The regulation stipulates administrative sanctions for non-compliant exporters, such as: Export permit suspension. Delayed processing of new permit issuance. Prohibition from applying for permits until reporting obligations are fulfilled. Impact on the Industry This policy significantly affects businesses and industries, including: Biodiesel Industry : Secures raw material supplies to achieve the B40 target. Exporters : Faces stricter supervision but gains opportunities to contribute to sustainability efforts. Environment : Expected to reduce pollution from palm oil waste.