Environment Minister Hanif Faisol Nurofiq said on Thursday that the credits, verified under the Paris Agreement, will come from various sectors that have successfully reduced greenhouse gas emissions.
He made this statement after a meeting on the implementation of mutual recognition arrangements (MRA) between Indonesia’s Greenhouse Gas Emission Reduction Certification (SPEI) and the Joint Crediting Mechanism (JCM).
The 60 million tons of CO2e come from various sectors that have successfully reduced greenhouse gas (GHG) emissions, including approximately 15 million tons from the forestry and other land uses (FOLU) sector.
The potential of CO2e from the FOLU sector alone could reach nearly 50 million tons.
In addition, emission reductions from projects under the Clean Development Mechanism (CDM), which are transitioning to the new mechanism under Article 6.4 of the Paris Agreement, could contribute around 4.8 million tons of CO2e.
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Nurofiq also mentioned another potential, which is carbon vintage or the volume of reduced emissions that have been inventoried but not yet bought or compensated by developed countries or climate finance institutions.
“The value is quite large, 721 million tons of CO2e, and this is also what we plan to showcase in Belem,” he noted.
Indonesia hopes these verified emission reductions will strengthen the country’s carbon trading, both in the voluntary and compliance carbon markets.
With the vast potential of the domestic carbon market, Indonesia is ready to step onto the international stage. IDXCarbon, the carbon trading platform developed by the Indonesia Stock Exchange (IDX), will serve as the backbone of international carbon transactions.
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Translator: Prisca, Kenzu
Editor: Rahmad Nasution
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