https://arab.news/52s5m
- Initial carbon credit certificates up for trade are worth 1.78 million metric tons of carbon dioxide equivalent
- Jakarta has pledged to reach carbon neutrality by 2060, plans to build 75 gigawatts of renewable energy capacity
JAKARTA: Indonesia began offering carbon credit certificates for international buyers on Monday, as one of the world’s top greenhouse gas emitters seeks to raise funds to achieve its climate goals.
The move comes after countries agreed on the rules for a global market to buy and sell carbon credits at the COP29 climate conference last November, which its proponents say will mobilize billions of dollars into projects to help fight climate change.
Indonesia is ready to issue carbon credit certificates from emission reductions from a number of power projects on Java island worth about 1.78 million metric tons of carbon dioxide equivalent (CO2e), Environment Minister Hanif Faisol Nurofiq said.
“The implementation of international carbon trading is a reflection of Indonesia’s commitment following COP29,” he said at a launching ceremony in Jakarta.
“It can be ensured that the emission reduction certificates issued by Indonesia are of high integrity … It is hoped that this will serve as (a) foundation for global climate action that (turns) ambition into action, aligning economic growth with environmental responsibility.”
Carbon credits are generated by activities that avoid or reduce emissions of carbon dioxide, a potent greenhouse gas. They can be purchased by companies or countries seeking to “offset” or cancel out some of their own emissions to help reach their climate goals.
Indonesia, an archipelago with the world’s third-largest rainforest area, is one of the world’s biggest polluters. It has pledged to reach carbon neutrality by 2060, including by phasing out hundreds of coal-fired power plants and replacing them with renewables.
With goals to build around 75 gigawatts of renewable energy capacity by 2040, the government plans to raise some of the required funds through carbon offset projects.
Monday’s launch was an “important milestone in our collective journey towards a sustainable future,” Nurofiq said.
Indonesia’s carbon credit market has attracted little interest after it was first launched for domestic players in September 2023.
Trading value as of December 2024 was 50.64 billion rupiah ($3.10 million), while trading volume reached 908,018 tons of CO2e, according to Indonesia’s Financial Services Authority.