Indonesia Has Officially Launched International Carbon Trading

Indonesia has officially launched international carbon trading, marked by an event at the Indonesia Stock Exchange (IDX) in Jakarta on Monday. This initiative is part of the country's efforts to meet its national climate targets.

The Minister of Environment and Forestry, Hanif Faisol Nurofiq, stated that this step supports real actions to achieve Indonesia's climate goals outlined in the Nationally Determined Contribution (NDC) document.

"The Indonesian government is working to meet the NDC targets, including through the implementation of carbon trading and economic value mechanisms," said Minister Hanif.

In addition to carbon trading, Indonesia is also promoting climate financing through performance-based payments, which are being developed with various partners and are based on technological advancements. Hanif confirmed that the international carbon trading will comply with Presidential Regulation No. 98 of 2021, which governs the Economic Value of Carbon for achieving Nationally Determined Contributions and controlling greenhouse gas emissions in national development.

The government has also strengthened the National Registry System (SRS) as part of the international carbon trading launch, along with other infrastructure and instruments, including Measurement, Reporting, and Verification (MRV) standards and Greenhouse Gas Emission Reduction Certificates (SPE-GRK).

"With these elements, we can ensure that the emission reduction certificates issued by Indonesia have high integrity," said the Minister of Environment. The carbon trading will involve several potential strategic energy projects, such as the operation of the Gunung Wugul Mini Hydro Power Plant, which is expected to reduce 5,000 tons of carbon dioxide equivalent (CO2e).

International carbon trading will involve the operation of the new gas-fired power plant, PLTGU Priok Block 4, which is expected to reduce emissions by up to 500,000 tons of CO2e. Additionally, converting the single-cycle plant to a combined cycle at PLTGU Grati Block 2 could lower emissions by 495,000 tons of CO2e, while the Block 2 unit at Muara Tawar has the potential to cut emissions by 30,000 tons of CO2e.

There is also potential for emission reductions from the construction of the new gas-fired power plant, PLTGU Block 3 PJB Muara Karang, which is estimated to reduce emissions by up to 750,000 tons of CO2e.

Tag: Hanif Faisol Nurofiq Indonesia Stock Exchange Nationally Determined Contribution PLTGU