"We know the way forward is not without challenges. Monitoring emissions, ensuring transparency, and addressing inequity issues are very important for us for the credibility of this system," the minister stated here on Thursday evening (Jan 16).
During a dinner with representatives of embassies of European and Asia Pacific countries, he stated that the Indonesian government would guarantee the validity of every certificate issued for international carbon trade.
The certificate will later be approved to protect against double counting, double payments, and double claims, ensuring that all traded certificates will be recorded until authorized.
According to Nurofiq, existing regulations have been able to accommodate the ongoing carbon trading process in Indonesia, both domestically and abroad.
He also noted that the proposed revision of Government Regulation Number 98 of 2021 concerning the Implementation of Economic Value for the Achievement of National Determined Contribution (NDC), as well as Regulation of the Minister of Environment and Forestry Number 21 of 2022 concerning the Procedures for the Implementation of Carbon Economic Value, can be implemented without disrupting the carbon trading process domestically or abroad.
To that end, Minister Nurofiq expressed hope for global support to fully leverage this opportunity wholeheartedly, as carbon trading does not only aim to reduce emissions but also to inspire a sustainable global movement.
"This is our commitment to the world and future generations. Indonesia is ready to contribute, lead, and collaborate for the benefit of nations," he affirmed.
The inaugural international carbon trade will take place through the Indonesian Carbon Exchange (IDX Carbon) and will involve several strategic energy projects aimed at meeting Indonesia's climate targets as outlined in its Nationally Determined Contribution (NDC) document.
The first international carbon trade is set to commence on January 20, 2025.
Nurofiq explained that the international carbon trading process will be carried out by ensuring the optimization of the National Registry System (SRN), as well as the preparation of infrastructure and other related instruments.
Carbon trading will involve several potential strategic energy projects, such as the operation of the Gunung Wugul Mini-Hydro Power Plant (PLTM), which is projected to reduce five thousand tons of carbon dioxide equivalent (CO2 eq).
It will also involve operating the New Natural Gas Power Plant, the Priok Block 4 Gas and Steam Power Plant (PLTGU), converting single-cycle power plants to combined cycles at the Grati Block 2 PLTGU and Block 2 power plant units in Muara Tawar and constructing the New Natural Gas Power Plant, PLTGU Block 3 PJB Muara Karang.
According to the ministry, these large projects are estimated to be able to reduce emissions by up to 750 thousand tons of CO2 eq, making a significant contribution to efforts to decarbonize the energy sector.
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Translator: M. Riezko Bima Elko Prasetyo, Yashinta Difa
Editor: Azis Kurmala
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