Illustrative photo (Photo: straitstimes.com) Jakarta (VNA) – Indonesia plans to launch its carbon exchange in September, withpower generation companies the first to trade on it.
The exchange willbe operated by Indonesia Stock Exchange (BEI) under the supervisory of the Financial Services Authority, and the Ministry of Environment and Forestry.
According to directorof the ministry’s department for the mobilisation of sectoral andregional resources Dr Ignatius Wahyu Marjaka, power producers that operate coal power plants and have a level ofemissions lower than the level set by the government can sell emissionallowances to their less efficient peers.
In February, Indonesia - Southeast Asia’s largesteconomy and the world’s eighth-largest greenhouse emitter - launched the firstphase of mandatory carbon trading for 99 coal power plants owned by 42companies and supplying electricity to state utility firm PLN.
More than half of the power generation in the country issourced from coal.
Wahyu said that Indonesia is also looking into companies inthe forestry sector that are quite capable and can meet the requirements totake part in the exchange in September.
Forestry and similar sectors linked to land use, togetherwith energy and transportation, make up 97% of Indonesia’s pledge to reduce emissions and adapt to climatechange.
Late last year, the government enhanced its target tocut emissions by 2030 by 31.89%,or by 43.2% withinternational financial support.
Wahyu said that Indonesian government is also identifying entities that contributed to removing 577million tonnes of carbon dioxide equivalent (CO2e) verified under the UnitedNations Framework Convention on Climate Change between 2018 and 2020. Thecurrent identification is geared towards those accounting for 100 milliontonnes CO2e of the overall figure, he said./.
