Indonesian President Joko Widodo speaks about the planned new capital Nusantara, at Ecosperity Week in Singapore June 7, 2023. (Photo: Reuters) Jakarta (VNA) – Indonesia launched its first carbon exchange on September 26, giving companies a chance to offset their emissions as the Southeast Asian country pledges to reach carbon neutrality in its power sector by 2050.
Speaking at the event, Indonesian President Joko Widodo congratulated the Financial Services Authority (OJK), the Indonesia Stock Exchange (IDX), and related agencies on launching the first Carbon Exchange in Indonesia.
He said it is one of Indonesia's real contributions to fighting with the world against the crisis due to climate change. Carbon trading will help Indonesia to realise its commitments.
He said Indonesia has tremendous potential for carbon reduction efforts and its carbon market could grow to reach 3,000 trillion rupiah (194.30 billion USD).
Carbon transactions will take place on IDX and will be monitored by OJK. According to IDX, thirteen transactions representing carbon credits for nearly 460,000 metric tonnes of carbon dioxide equivalent (CO2e) were traded during the launch, priced at 69,600 rupiah (4.51 USD) per tonne.
IDXCarbon is considered a way to reduce emissions to help Indonesia achieve its climate goals before 2050, which were agreed under the 20 billion USD Just Energy Transition Partnership (JETP) at the G20 Summit hosted by Indonesia in November 2022./.
