“Indonesia holds tremendous potential in carbon trading, which can be maximized to support national economic growth while contributing to the global effort to combat climate change,” Minister Hanif, who also heads the Environmental Control Agency (BPLH), noted in a statement received in Jakarta on Thursday.
“Indonesia has already implemented a domestic carbon trading system and is actively developing an international scheme that adheres to the TACCC principles—Transparent, Accurate, Consistent, Complete, and Comparable,” he highlighted.
Minister Hanif made the remarks at the CGCM launch, part of the London Climate Action Week held on Tuesday (June 24). The CGCM is a joint initiative by Kenya, Singapore, and the United Kingdom, aimed at developing a credible and high-integrity voluntary carbon market.
Invited by the UK government, Minister Hanif stressed that carbon markets are not only economic instruments but also a moral commitment to protecting the planet, strengthening national sovereignty, and improving public welfare.
The launch was attended by high-level government officials, business leaders, members of the international community, and global media. Indonesia, along with Panama and Peru, was specially invited to deliver a government keynote address.
Minister Hanif was the first to take the podium, where he presented Indonesia’s progress and policy direction in developing a national carbon economic value system.
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He explained that Indonesia is committed to strengthening the integrity of its international carbon trading, with the Ministry of Environment and BPLH having signed Mutual Recognition Agreements (MRAs) with several international carbon credit systems.
This move is essential for establishing a high-integrity carbon trading system that supports the achievement of Indonesia’s Nationally Determined Contributions (NDCs).
Minister Hanif also welcomed the formation of coalitions like CGCM, which aim to build global trust and integrity in climate action.
He stated that Indonesia is ready to engage in broad and balanced collaborations—not only bilaterally but also through multilateral partnerships—to ensure meaningful contributions toward the Paris Agreement goals.
He further stressed the importance of consolidating national roles in NDC implementation and the need to strengthen national capacities. In this context, the Voluntary Carbon Market (VCM) can play a vital role in bridging capacity gaps between countries and on-the-ground actors.
“VCMs can strengthen the capabilities of climate action implementers at the grassroots level. Collaboration between governments and VCMs is crucial to prepare for the transition to a more integrated carbon market system that supports the achievement of the Paris Agreement goals,” Nurofiq stated.
Related news: Indonesia committed to transparency in international carbon trading
Translator: Prisca, Azis Kurmala
Editor: Rahmad Nasution
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