ASIATODAY.ID, JAKARTA — Indonesia has taken a historic step toward implementing Article 6.2 of the Paris Agreement with the launch of its first technology-based international carbon trade, announced by the Ministry of Environment/Environmental Control Agency.
This breakthrough is marked by the signing of a Framework Agreement between PT PLN (Persero) and the Global Green Growth Institute (GGGI), under the bilateral cooperation between the Governments of Indonesia and Norway. Through this agreement, Indonesia will deliver 12 million tonnes of CO₂e in mitigation outcomes from renewable energy projects.
The signing forms part of the Generation-Based Incentive (GBI) Programme and represents concrete progress following earlier cooperation between KLH/BPLH and Norway’s Ministry of Climate and Environment.
“This collaboration is not the end point—it is the beginning of real implementation. Indonesia is committed to building a carbon market that is high-integrity, transparent, and delivers direct benefits for communities and the environment,” said Minister of Environment Hanif Faisol Nurofiq quoted in Jakarta on Thursday, 20 November 2025.
The PLN–GGGI Framework Agreement is a critical milestone toward the Mitigation Outcome Purchase Agreement (MOPA), scheduled for signing in late December 2025.
Once operational, MOPA will make Indonesia the first country in the world to run a technology-based international carbon trade under Article 6.2, while expanding the national carbon market into clean energy technologies.
Until now, Indonesia–Norway cooperation has focused primarily on Nature-Based Solutions (NBS) through Norway’s Result-Based Contributions (RBC)—amounting to USD 260 million supporting Indonesia’s forest governance performance.
With this new breakthrough, Indonesia is formally entering a technology-based carbon trading phase, a strategic leap in diversifying emission-mitigation sources toward a low-carbon energy transition.
“We appreciate Norway’s commitment to covering the five percent Share of Proceeds for adaptation. Indonesia proposes channeling these funds through the National Climate Fund to ensure more effective implementation aligned with national priorities,” Minister Hanif added.
Norway’s Minister of Climate and Environment Andreas Bjelland Eriksen expressed strong confidence in Indonesia’s readiness to lead the global high-integrity carbon market agenda.
“For Norway, this program marks only the beginning. We believe this joint step will open the door to broader collaboration in technology and green investment. Indonesia has demonstrated both capacity and political will to lead high-integrity carbon initiatives—sending a strong signal to global investors and governments,” Eriksen stated.
The Indonesia–Norway partnership reinforces Indonesia’s core message at COP30: real leadership in the energy transition and commitment to achieving Net Zero Emissions (NZE) by 2060 or sooner.
At the Leaders Summit, Hashim Djojohadikusumo, Special Envoy of the President, underscored President Prabowo Subianto’s commitment to accelerating climate action through just and inclusive development.
In the Second Nationally Determined Contribution (SNDC), Indonesia targets 1.2–1.5 gigatons of CO₂e emissions reduction by 2035, a 23% renewable energy mix by 2030, and expanded development of new energy technologies.
“Indonesia comes to Belém with a clear message: we are strengthening national climate action and are ready to collaborate with other countries to advance inclusive, ambitious, and results-oriented initiatives,” Hashim emphasized.
As the lead implementer, PLN President Director Darmawan Prasodjo affirmed PLN’s readiness to deliver President Prabowo’s vision of an accelerated energy transition through the Electricity Supply Business Plan (RUPTL) 2025–2034.
“Over the next decade, Indonesia will add 69.5 gigawatts of generation capacity, with around 76% coming from renewable energy and energy-storage technologies,” Darmawan said.
The new RUPTL serves as PLN’s strategic roadmap to fast-track the clean energy transition toward NZE, expand electrification in remote, outermost, and underdeveloped (3T) regions, create green jobs, and strengthen national energy security.
“By prioritizing renewable energy, PLN is committed to building a cleaner, more inclusive, and sustainable power system. We are confident that Indonesia’s energy transition targets can be achieved with strong support from all stakeholders in technology, financing, capacity-building, and regulation,” he concluded.
The Indonesia–Norway collaboration—anchored by the PLN–GGGI Framework Agreement—marks the formal start of Indonesia’s technology-based international carbon trade.
This achievement strengthens Indonesia’s position as a leading driver of high-integrity carbon markets and underscores KLH/BPLH’s mandate to fully implement Article 6 of the Paris Agreement on the path toward a fair and sustainable green economy. (AT Network)
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