IDXCarbon Officially Launches International Carbon Trade

KBRN, Jakarta: The Indonesia Carbon Exchange (IDXCarbon) has launched the International Carbon Trade in Jakarta on Monday, January 20, 2025, aims to support the net zero emission target by 2060.

Environment Minister Hanif Faisol Nurofiq stated that the implementation of international carbon trading is something that the government has been eagerly awaiting. "Indonesia might be the earliest country to operationalize Article 6 since it was officially mandated," said Minister Hanif as quoted by rri.co.id.

He was referring to the Paris Agreement that allows countries to cooperate in achieving their emission reduction targets through carbon trading.

The carbon exchange also aims to attract international participation and strengthen Indonesia's carbon trading. Meanwhile, carbon trading for nature-based solutions in the forestry sector will follow in the future.

Carbon exchange is a market mechanism that allows companies to purchase or sell carbon certificates for carbon emission reduction. In this system, carbon emissions are measured in metric tons of carbon dioxide equivalent (tCO2e).

Through carbon exchange, parties that can reduce emissions beyond their targets can sell their excess to others, especially those that still need space to meet their emissions targets.

This system aims to encourages companies to be more active in reducing emissions while also creating economic incentives for greater emission reductions. ***