Pollination Partners with INA to Unlock the Potential of Nature-Based Solutions in Indonesia
Echoing the global commitment to support climate change mitigation efforts, Indonesia Investment Authority (INA), and Pollination, a global climate change investment, advisory, and solutions firm, signed a Memorandum of Understanding (MoU). This collaboration symbolizes a significant stride towards harnessing the power of nature-based solutions (NBS) – strategies that employ our ecosystems’ inherent capacity to absorb carbon emissions, bolster biodiversity, and nurture socio-economic growth. Uniquely positioned, Indonesia holds the world’s second-largest low-cost NBS potential, accounting for 75% of SEA carbon stocks.
This MOU lays the groundwork for cooperation on the NBS sector in Indonesia, Southeast Asia’s largest economy. This effort is aligned with global and Indonesian aspirations for net zero emissions, in line with the Paris Agreement’s targets, aiming to limit global temperature rise to a maximum of 1.5 degrees Celsius and reduce greenhouse gas (GHG) emissions by at least 31% through domestic efforts or up to 43% with international support by 2030. INA’s commitment is evident through its focus on green energy and transformation sector, playing a crucial role in Indonesia’s green transition.
The collaboration is further bolstered by the Indonesian Government’s progressive stance on carbon trading mechanisms, both domestically and internationally. The Presidential Regulation No. 98 of 2021 and the Minister of Environment and Forestry (MOEF) Regulation No. 21 of 2022 have laid the groundwork for domestic carbon pricing and participation in international carbon markets. The recent MOEF Regulation No. 7 of 2023 on the Procedures for Carbon Trading in the Forestry Sector further sets the guidelines for carbon trading in the forestry sector, providing a clear pathway for comprehensive climate change mitigation initiatives. Embracing NBS — conservation, improved land management, and restoration activities to increase carbon storage — offers Indonesia a way to reduce GHG emissions and create carbon sinks. These moves emphasize the growing role of NBS in Indonesia’s climate strategy.
“With INA’s focused approach to green energy and transformation, coupled with Pollination’s profound expertise in climate change solutions, we see a tangible pathway to generate meaningful carbon credits and foster nature-based investments. We are committed to working in alignment with the Government regulations, prioritizing measurable and attainable objectives,” said Ridha Wirakusumah, INA’s Chief Executive Officer.
“Reaching net zero global emissions as quickly as we need to will require the opportunities presented by NBS to be maximised,” said Pollination Chief Executive Officer Martijn Wilder. ”
He further added, “We are extremely optimistic about Indonesia’s ability to initiate and host the high-quality projects that global investors are actively seeking and to execute them at a scale that will be required. Our goal is not only to attract global investment, but also to assist Indonesia in meeting its national targets, generating additional export opportunities where applicable, and bringing about positive outcomes for Indonesia’s natural environments and its people.”
Under the terms of the MoU, both INA and Pollination are committed to identifying investment opportunities, developing nature-based projects, and enhancing strategic planning for financing and investing in NBS. This partnership stands as a testament to their shared objective of unlocking the potential of these natural solutions, aiming to deliver impactful and tangible results.
“Through our partnership with Pollination, our aim is not only to drive significant growth in carbon offset solutions, which are an essential tool in combating climate change, but also to ensure that our projects create tangible socio-economic benefits,” Ridha continued. “We are seeking to create value that goes beyond just CO2 reduction, contributing to biodiversity and providing substantial advantages for local communities. All these efforts are aligned with our commitment to drive Indonesia towards a greener and more sustainable economy.”
This MoU signals INA’s openness toward exploring all opportunities to maximize the benefits of NBS. Leveraging Pollination’s end-to-end expertise in deal sourcing, due diligence, project development, and its vast resources, INA aims to make a significant contribution to global sustainability efforts.
About the Indonesia Investment Authority (INA)
The Indonesia Investment Authority is Indonesia’s sovereign wealth fund, mandated to increase investment to support the country’s sustainable development and build wealth for its future generations. INA conducts investment activities and collaborates with leading global and domestic investment institutions in sectors that strengthen Indonesia’s advantages and provide risk-adjusted optimal returns.
For more information, please visit www.ina.go.id.
Pollination is a specialist climate change investment and advisory firm dedicated to accelerating the transition to a net-zero, nature positive future. It works with clients across government, business, and public and private capital, helping them to navigate the climate transition. Pollination is also developing several net-zero-focused investment platforms and is a partner in Climate Asset Management, a joint venture with HSBC that currently has US$650m in Assets under Management, across natural capital and carbon strategies.
For more information, please visit www.pollinationgroup.com
Indonesia Investment Authority (INA)
Putri Dianita Ruswaldi
VP of Communications
Marketing and Communications Director
 Source: Bain & Company