Enviro News Asia, London — The Minister of Environment/Head of the Environmental Control Agency (KLH/BPLH) of the Republic of Indonesia, Hanif Faisol Nurofiq, stated that the carbon market is not merely an economic instrument, but a moral commitment to safeguard the Earth, strengthen national sovereignty, and promote the well-being of the global community.
He made this statement during the launch of the Coalition to Grow Carbon Market (CGCM) at the London Stock Exchange, held as part of the London Climate Action Week.
The Minister’s presence at this prestigious forum followed an invitation from the UK Government’s Secretary of State for Energy Security and Net Zero. CGCM is a joint initiative by Kenya, Singapore, and the United Kingdom aimed at developing a credible and high-integrity voluntary carbon market.
The coalition’s main objective is to strengthen cross-country collaboration in developing a harmonized approach to private sector carbon credit purchasing and ensure alignment with decisions under Article 6 of the Paris Agreement, which will continue to evolve following COP29 in Baku, Azerbaijan.
In the coming months, the coalition is expected to expand by involving more countries that play key roles in supplying or increasing demand for high-quality carbon credits.
It will work closely with the business sector to provide clarity and incentives for climate investments.
The launch event was attended by high-level leaders from governments, the business community, international organizations, and global media. Indonesia, Panama, and Peru were specially invited to deliver Government Keynote speeches.
Minister Hanif was the first to deliver remarks, sharing Indonesia’s achievements and policy direction in developing its national carbon economic value system.
“Indonesia has great potential in carbon trading, which can be optimized to support national economic growth while contributing to global climate change mitigation.
We have implemented a domestic carbon trading system and are actively developing an international scheme aligned with the TACCC principles—Transparent, Accurate, Consistent, Complete, and Comparable,” Minister Hanif stated in his official remarks on Wednesday (June 25, 2025).
To strengthen the integrity of international carbon trading, KLH/BPLH has signed Mutual Recognition Agreements (MRAs) with several international carbon credit issuing schemes.
This is a crucial step toward building a high-integrity carbon trading system and supporting the achievement of the Nationally Determined Contributions (NDC) targets.
Furthermore, Minister Hanif expressed Indonesia’s support for the establishment of coalitions such as CGCM, which aim to foster global trust and integrity in collective climate action.
Indonesia is ready to engage in broad and balanced collaboration—not only bilaterally, but also multilaterally—to ensure meaningful contributions toward the Paris Agreement goals.
He also highlighted the importance of the Voluntary Carbon Market (VCM) in bridging the capacity gap between countries and actors on the ground.
Indonesia emphasized the need to avoid isolated projects disconnected from sectoral mitigation priorities within the NDC framework.
Instead, all stakeholders should prioritize strategic collaboration based on nationally designed plans that consider both climate benefits and the welfare of local communities.
In his closing remarks, Minister Hanif reiterated that building a global carbon market must uphold values of fairness, national sovereignty, and a spirit of collaboration.
“Indonesia supports international cooperation that is respectful and complementary, in pursuit of restoring Earth’s climate and achieving prosperity for all humanity,” concluded Minister Hanif. (*)
