THE nation has plans to start offering carbon credit certificates to international buyers, the country’s carbon exchange said, in a bid to raise funds to aid efforts in achieving its carbon neutrality target.
Indonesia is an archipelago with the world’s third-largest rainforest area, but it is also one of the world’s top 10 greenhouse gas emitters.
The first offer of carbon credit certificates for international buyers will be launched tomorrow, the exchange said.
The certificates will come from emission reductions from several power projects on Java island worth 2.48 million metric tonnes of carbon dioxide equivalent (CO2e), the Ministry of Environment said earlier this week, according to the Antara state news agency.
Indonesia launched carbon emission credit trading for domestic players in September 2023, but the market has been mostly illiquid due to a lack of supply and demand.
Trading value as of December 2024 was 50.64 billion rupiah, while trading volume reached 908,018 tonnes of CO2e, according to Indonesia’s Financial Services Authority.
President Prabowo Subianto has plans to raise funds through sales of carbon offsets.
Last year, he said he was optimistic Indonesia could reach net zero emissions in 2050, a decade earlier than previously targeted, including by retiring coal-fired power plants. — Reuters
