September 26, 2023 | Carbon credits |
Indonesia has launched a carbon credit trading market, selecting the Indonesia Stock Exchange (IDX) as the platform. As Southeast Asia's largest emitter, Indonesia aims to reduce carbon emissions, promote energy transition, and achieve net-zero by 2060. President Joko Widodo believes Indonesia has vast potential in nature-based carbon reduction efforts, envisioning the country as the world's carbon market axis. The carbon exchange is expected to reach a value exceeding $194 billion. Over 99 coal-fired power plants, representing 86% of Indonesia's active coal plants, are set to participate, signaling a significant step in the nation's efforts to decarbonize its power sector. The country is focusing on finding funds to address the highest-ever growth in coal emissions last year. Carbon credits from PT Pertamina Geothermal Energy's Lahendong power plant were the first to be traded, starting at $4.51/credit, with buyers including major banks, mining firms, and state energy company Pertamina. The government plans to implement international standards for carbon trading and apply a carbon tax, extending emission caps to various sectors, including forestry, agriculture, waste management, and industrial processes. The use of blockchain technology will record carbon credit transactions in this bold move towards Indonesia's net-zero goal.