It looks like you’re browsing from Netherlands. Click here to switch to the Dutch →
The Financial Services Authority (OJK) in Indonesia is actively working to launch carbon exchange trading in the country by September 2023. To accomplish this goal, the OJK Board Commissioners Chairman, Mahendra Siregar, has revealed that the financial regulatory body intends to introduce an OJK regulation specifically for carbon exchanges in the coming month.
Bromo volcano at sunrise. Tengger Semeru National Park, East Java, Indonesia.
Mahendra further explained that the initial strategy for launching carbon exchange trading is to use the result-based payment (RBP) trade of 100 million tonnes of carbon dioxide. The OJK is also planning to connect the national registration system at the Ministry of Environment and Forestry with the carbon exchange information system.
Currently, the Ministry of Environment is finalising the RBP, while the OJK is simultaneously preparing for various aspects, such as the national registration system, emission reduction certifications, and authorisations.
Additionally, the Ministry of Environment is busy drafting a ministerial regulation on carbon in the forestry sector and a protocol for overseas carbon trading through investment cooperation. This aims to achieve Indonesia's Nationally Determined Contribution (NDC) targets and other objectives.
The Indonesian government intends to launch the carbon exchange concurrently with the enhancement of the National Registry System (SRN) and the Carbon House of Indonesia's National Focal Point for the United Nations Framework on Climate Change Conference (NFP-UNFCCC) in June. Furthermore, the government has scheduled the development and improvement of the SRN's main facilitation during the same month.
The ongoing development of the Standard Operating Procedure for Indonesian carbon trading, which will be integrated into the SRN-Carbon registry-Carbon Stock Exchange system, is a significant undertaking. The Standard Operating Procedure will guide those implementing climate change mitigation and adaptation actions, encouraging their commitment to achieving Indonesia's NDC targets and preparing them for carbon trading.
To establish an efficient carbon trading system, Indonesia is establishing the Indonesian Climate Change Control and Carbon Trading hub. This hub will serve as an information service centre, a resource for guidance, an operationalisation site for the SRN, a carbon credit mapping centre, and a means to ensure the achievement of Indonesia's NDC targets and the availability of tradable carbon credits.
The Indonesia Stock Exchange (IDX) has already engaged a consultant to study carbon trading practices in other countries, examining both the supply and demand aspects. The Indonesia Stock Exchange is also making preparations within its existing system for carbon trading, through the Indonesian Securities Guarantee Clearing and Central Securities Depository (KPEI-KSEI), with the possibility of integration or separate trading on the stock exchange.
It is encouraging to see countries accelerating the processes needed to reach their sustainability goals. At DGB Group, we believe collaboration is the key element to the success of nature-based solutions in the long term. DGB has established a solid reputation for creating carbon projects that yield favourable outcomes for all parties involved. These projects not only benefit landowners, local communities, private enterprises, government agencies, and non-governmental organisations but also contribute to sustainable development and environmental conservation. DGB's track record exemplifies our high expertise in developing carbon initiatives that foster positive impacts and promote collective efforts toward a greener future.
As DGB Group, our sole purpose is to rebuild trust and serve the public by making the right information available to everyone. By subscribing to our mailing newsletter, you can get the latest tips and trends from DGB Group's expert team in your inbox. Sign up now and never miss the insights.
The Voluntary Carbon Market Integrity Initiative (VCMI) has declared Bain & Company as the pioneerin..
Microsoft is to acquire 350,000 carbon credits (carbon units) from a Kenyan agroforestry project. Th..
In a groundbreaking development, California's carbon allowance auction has captured the market's att..
Rio Tinto, the global mining powerhouse, announced its plan to significantly increase its retirement..