Indonesia clocks Rp36.7 billion in carbon transactions as of June-end

Jakarta, July 23 (ANTARA) - The value of carbon transactions facilitated by the Indonesia Carbon Exchange (IDXCarbon) has hit Rp36.7 billion (US$2.2 million) during the period from its inception on September 26 last year to June 30, 2024

According to the Coordinating Ministry for Economic Affairs in Jakarta on Tuesday, the value is derived from the total trade volume of 608 thousand tons of carbon dioxide (CO2) equivalent.

Elen Setiadi, the ministry's Deputy III for Business Development & Research and Innovation State-owned Enterprises, stated that the value of carbon transactions totaled Rp5.9 billion (US$364 thousand) in the first half of 2024, with the volume reaching 114,500 tons of CO2 equivalent.

He remarked that IDXCarbon is expected to serve as a vital instrument in helping the Indonesian government cut greenhouse gas emissions and achieve the net-zero emissions (NZE) target by 2060, adding that 196 countries have adopted the Paris Agreement in 2015 to pursue NZE.

Setiadi then underlined that the international community has committed to ensuring that the increase in the Earth's surface temperature does not cross 1.5 degrees Celsius and reducing global carbon emissions by 45 percent by 2030.

To that end, he affirmed that Indonesia is determined to cut its carbon emissions by 31.89 percent through unilateral means and 43.20 percent with international support.

He remarked that acknowledging the enormous financial capacity required to actualize its determination, the Indonesian government has issued several related regulations, including Presidential Regulation No. 98 of 2021 concerning the economic value of carbon.

The official further stated that Indonesia had also resorted to performance-based payment schemes backed by international partners as one of its strategies to tackle carbon emissions.

In this regard, he said Indonesia would be rewarded with US$156 million by Norway for reducing 31.2 million tons of carbon emissions and receive US$103.8 million from the Green Climate Fund for reducing 20.3 million tons of emissions.

Meanwhile, the East Kalimantan provincial government will receive US$110 million from the Forest Carbon Partnership Facility Carbon Fund (FCPF-CP) to reduce emissions by 20 million tons.

For reducing 14 million tons of carbon emissions, he stated that the Jambi provincial government would earn US$70 million from the BioCarbon Fund.

"The measures taken by the government would lead to expected results if supported by private actors, academicians, civil society, and the media," he affirmed.