Indonesia to explore carbon trading partnerships at COP29

Jakarta (ANTARA) - Indonesia is ready to discuss potential carbon trading partnerships with several countries under Article 6 of the Paris Agreement during the UN Climate Change Conference (COP29) in November.

Environment Minister Hanif Faisol Nurofiq made this announcement after attending a meeting on preparations for the COP29 in Jakarta on Tuesday.

According to Nurofiq, the Indonesian delegation will raise the matter of accelerating greenhouse gas reduction and implementing Article 6 of the Paris Agreement which sets out climate finance models, including Article 6.2 on international cooperation frameworks for carbon trading schemes between countries.

Nurofiq stated that Indonesia's emission reduction achievement, detailed in the Nationally Determined Contribution (NDC) document, is the basis for cooperation with other countries, including a planned collaboration with Japan for the implementation of Article 6.2.

"The NDC will be calculated starting from 2021," he remarked.

While specific details regarding the cooperation plan were not revealed, Special Envoy for Energy and Environment Hashim Djojohadikusumo, appointed by President Prabowo Subianto, would later make an announcement on the implementation.

On the same occasion, Djojohadikusumo emphasized Indonesia's significant carbon trading potential, citing the country's successful reduction of 577 million tons of carbon dioxide equivalent (CO2e) in the 2018-2020 period.

In addition, he projected an even larger reduction of 600 million tons of CO2e for the 2021-2023 period.

"It will be proposed by the minister to international parties. This is our contribution and the value is quite a lot, US$10, at least US$10 per ton. The additional state revenue outside the state budget is around Rp190 trillion (around US$12.07 billion)," he remarked.