Indonesia Launches Carbon Exchange in Bid to Curb Climate Change

President Jokowi launches Indonesia Carbon Exchange at Indonesia Stock Exchange Building in Jakarta, Tuesday (09/26). (Photo by: PR of Cabinet Secretariat/Agung)

President Joko “Jokowi” Widodo Tuesday (09/26) launched Indonesia Carbon Exchange and its first carbon credit trading at the main hall of the Indonesia Stock Exchange Building in Jakarta.

President Jokowi pointed out that Indonesia Carbon Exchange is the country’s concrete contribution to curbing the impacts of climate change.

“This is Indonesia’s real contribution to fight with the world against climate crisis, against climate change. The results of the trade will be reinvested in efforts to protect the environment, especially by reducing carbon emission,” he said.

According to the President, Indonesia has a great potential to bring nature-based solutions and become the only country that can achieve 60 percent of its carbon emission reduction target through nature.

The President also stated that the country has approximately one gigaton of carbon credit potential.

“If calculated, our carbon exchange potential reaches Rp3,000 trillion or even more. This is a huge number, which will certainly open new economic opportunities that are sustainable and environmentally sound, in line with the global shift to green economy,” he said.

President Jokowi underscored that concrete steps need to be taken to curb climate change as the impacts have been eminent globally, including global temperature increase, droughts, floods, and pollution.

“The carbon exchange we are launching today can be a concrete step. It can be Indonesia’s concrete step to achieve the Nationally Determined Contribution (NDC) target,” he said.

As for carbon trading, the President pointed out that international carbon standards should be used as a reference and leverage technology for effective and efficient transactions, adding that there must also be a target and timeline for both domestic and international markets.

The President went on to urge that voluntary carbon market must be regulated and facilitated in accordance with practices in international communities and the international standards used must not obstruct Indonesia’s NDC target achievement.

“I am highly optimistic that Indonesia can become the world’s carbon [market] axis as long as those concrete steps are taken consistently and jointly by all stakeholders, including the Government, private sector, the public, and others,” he remarked. (DND/UN) (DH/LW)