ASIATODAY.ID, JAKARTA – The Indonesian Carbon Exchange (IDXCarbon) has started bidding for the first international carbon trading which is planned to start on January 20 2025.
“IDXCarbon opens the opportunity for international participants to take part in the first international carbon trading. “Indicative trading date, January 20 2025,” read the announcement.
IDXCarbon said that the carbon units offered in international trade can be purchased by international entities. Apart from that, the commitment to reduce emissions as stated in the Nationally Determined Contribution (NDC) can be claimed by buyers. Based on data as of January 10 2025, currently there are 2.53 million tons of verified carbon equivalent (CO2e) that can be traded on the Carbon Exchange. Apart from that, there are six projects that have certificates for reducing greenhouse gas emissions.
“The opening of the international market for the first time was welcomed positively with high enthusiasm from various parties. “We received many questions from both foreign media and prospective foreign buyers,” said Director of Development for the Indonesian Stock Exchange, Jeffrey Hendrik in a written statement, Monday, January 13 2025.
However, Jeffrey cannot say much about the prospects for demand from international buyers. He said that his party was still looking at concrete transaction developments in the future.
International carbon trading itself refers to Presidential Regulation Number 98 of 2021 and Minister of Environment and Forestry Regulation Number 21 of 2022. These regulations specifically mention the authorization mechanism from the Minister of the Environment for carbon credits that can be traded to foreign parties.
“It is planned that on January 20 2025, the first trading for carbon credits that have received this authorization will be carried out,” added Jeffrey.
Jeffrey stated that the process of granting authorization at the Ministry of the Environment is still ongoing so it is not yet known for certain the volume of carbon units available for trading.
“Indications for projects that will be authorized are projects belonging to the PLN group that have been registered on SRN and IDXCarbon,” he explained.
Several PLN projects through their business entities have been registered with IDXCarbon in 2025. These projects include the Operation of the New Priok Block 4 Natural Gas Fueled Power Plant and the Conversion from a Single Cycle Plant to a Combined Cycle (Add On) Grati Block 2 Steam Gas Power Plant owned by PT PLN Indonesia Power. Furthermore, there is also a conversion from a single cycle generator to a combined cycle block 2 PLN NP UP Muara Tawar which is managed by PT PLN Nusantara Power. (TR Network)
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