Indonesia officially launches international carbon trading initiative

Jakarta (ANTARA) - Indonesia officially joined the global network of carbon trade by unveiling its first international carbon trade transactions at the Indonesian Stock Exchange (BEI) in Jakarta on Monday.

Speaking during the launch event, Environment Minister Hanif Faisol Nurofiq noted that this initiative aims to achieve Indonesia's climate targets, as outlined in the Nationally Determined Contribution (NDC) document.

He emphasized that Indonesia's international carbon trading would be implemented by conforming to Presidential Regulation No. 98 of 2021 concerning the implementation of carbon economic value for NDC targets and the control of greenhouse gas emissions in national development.

The minister further remarked that to support Indonesia's participation in international carbon trading, the government had optimized various instruments, including the National Registry System (SRN).

He then stated that Indonesia's international carbon trading would involve several potential strategic energy projects, such as the operation of the Gunung Wugul Mini-Hydro Power Plant in Central Java, which is projected to reduce five thousand tons of carbon dioxide equivalent (CO2 eq).

It will also involve operating the Priok Block 4 Gas and Steam Power Plant (PLTGU) and constructing PLTGU Block 3 PJB Muara Karang in North Jakarta. These power plants have the potential to cut emissions by 500 thousand and 750 thousand tons of CO2 eq, respectively.

Moreover, the trading may include converting single-cycle power plants to combined cycles at the Grati Block 2 PLTGU in East Java to target 495 thousand tons of CO2 eq and at Block 2 power plant units in Muara Tawar in West Java to cut 30 thousand tons of CO2 eq.

He remarked that in addition to international carbon trading, the Indonesian government has been collecting funds for climate initiatives through performance-based grant deals established with various parties.