Jakarta (ANTARA) - Energy and Mineral Resources Minister Arifin Tasrif has said the regulation on carbon trade optimization is currently being completed.

“So, the regulation is in the completion process. But maybe the ones with the highest authority (regarding the regulation) are the Financial Services Authority (OJK) and Finance (Ministry)," he said.

He made the statement after a meeting on carbon trade policy optimization here on Wednesday. The meeting was led by President Joko Widodo.

To optimize carbon trade, a National Registry System needs to be prepared, and the Financial Services Authority will need to refine the system further, he added.

In the carbon trade scheme, the Energy and Mineral Resources Ministry will only function as a support for determining the sources of carbon supply, he informed.

"The sources are from the Environment Ministry, from industry, energy," he elaborated.

He said that he intends his ministry to serve as a model of green transition in the future. Indonesia could start out small in terms of carbon trade, and any shortcomings could be addressed and refined in the future, the minister suggested.

As per Presidential Regulation No. 46 of 2008 on the Climate Change Board, carbon trade is an activity under which carbon emission reduction certificates from climate change mitigation activities will be traded.

It is expected that such trade would encourage a reduction in the rate of emissions as well as minimize the impacts of climate change.

According to data from the ministry, in 2018, CO2 reduction reached as much as 40.6 million tons. It was recorded at 54.8 million tons in 2019, 64.4 million tons in 2020, and 91.5 million tons in 2022. It is projected that in 2023, emission reduction may reach 116 million tons.

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Translator: Rangga Pandu A J, Mecca Yumna
Editor: Rahmad Nasution
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