Posted on 29 Sep 2023
The Indonesian government launched its first carbon exchange, the Indonesian Carbon Exchange (IDXCarbon), on 26 September in Jakarta, Kallanish learns from the Indonesian stock exchange PT Bursa Efek Indonesia.
On the first day of trading (26 September), there were 27 transactions totalling 459,953 tonnes of carbon dioxide equivalent (CO2e) traded on the IDXCarbon platform. Major buyers included the Bank of Central Asia, CIMB Bank, and DBS Bank.
According to the stock exchange, besides providing transparency in prices, IDXCarbon trading also offers an easy and simple transaction mechanism. Currently, there are four IDXCarbon trading mechanisms – Auction, Regular Trading, Negotiated Trading, and Marketplace.
Launching the platform, Indonesian President Joko Widodo said the establishment of this exchange is part of the country’s carbon emission reduction plan to reach net zero by 2060 and stressed that this is a real contribution Indonesia makes to solving the global warming issues.
“Proceeds from this trade will be reinvested in protecting the environment, especially reducing carbon emissions, as Indonesia has extraordinary potential in nature-based solutions and is the only country where approximately 60% of carbon emissions reductions come from the natural sector,” he adds.
The head of state estimates the Indonesian carbon market has the potential to reach IDR 3,000 trillion (193.8 billion) or more. “This huge amount will be a new economic opportunity that is sustainable and environmentally friendly, which is also in line with the direction of the world’s green economy. Carbon trading can be a big step for India and Indonesia to achieve their emission reduction targets,” he concludes.
Indonesia, the world’s largest nickel producer, is expanding its electric vehicle ecosystem and focusing on becoming a hub in Southeast Asia.
Source:Kallanish
