Enviro News Asia, Jakarta – Minister of Environment (MOE) Hanif Faisol Nurofiq stated that carbon trading conducted by Indonesia is solely aimed at achieving the greenhouse gas (GHG) emission reduction targets outlined in the Nationally Determined Contribution (NDC) document.
“Carbon trading is indeed intended only to achieve the NDC, nothing beyond that. This means that achieving the NDC involves the certification of emission reductions (SPE), with some certificates retained for domestic trade while others may be voluntarily traded internationally,” said Minister Hanif as quoted by Antara on Monday (January 6, 2025).
He mentioned that Indonesia continues to enhance its carbon trading efforts, including developing a more optimized National Registration System (SRN) and communicating with the Indonesia Stock Exchange regarding the establishment of the Indonesian Carbon Exchange (BKI).
The existence of the Carbon Economic Value (NEK) is part of the effort to reduce GHG emissions, targeted at a 31.89% reduction through domestic efforts and 43.2% with international support by 2030, as stated in the Enhanced NDC document, and to achieve net-zero carbon emissions by 2060.
“Among these efforts, we must promptly establish a climate for implementing a carbon economy through carbon trading, performance-based payments, and carbon levies. These three aspects have been mandated in Presidential Regulation Number 98 of 2021,” he explained.
In addition to optimizing the effectiveness of SRI, efforts are also directed at developing credible SRE methodologies and completing roadmaps for sectors included in the NDC, as well as Measurement, Reporting, and Verification (MRV).
On this occasion, he also mentioned that Indonesia’s second NDC document, or Second NDC, will be submitted to the UNFCCC Secretariat no later than February 2025.
“This, of course, requires strategic steps to encourage all parties to agree on the figures for reducing greenhouse gas emissions in this Second NDC, which we will use as a reference for reducing emissions from 2031 to 2035,” said Hanif Faisol Nurofiq.
