Enviro News Asia, Jakarta – Deputy Minister of Environment Diaz Hendropriyono stated that the government will continue to promote carbon trading activities. One of the efforts being pursued is leveraging nature-based solutions (NBS), such as utilizing carbon emissions stored in peatland ecosystems for carbon credits.
“International carbon trading is now open, so there has been a shift—trading can now take place internationally. However, we must acknowledge that market movement is not yet particularly attractive,” said Diaz at the Indonesia Climate Policy Outlook 2025 event, organized by the Foreign Policy Community of Indonesia (FPCI) in South Jakarta on Thursday (February 20, 2025). Indonesia officially launched international carbon trading earlier this year, following the introduction of the Indonesia Carbon Exchange in 2023, which marked the start of national-scale carbon trading.
Diaz admitted that carbon trading performance has yet to reach its full potential. “The market seems to be looking for nature-based solutions (NBS), not just renewable energy, as NBS might offer better prices and be more sellable. So now, we are focusing on securing as much supply as possible, particularly from NBS and peatlands,” he said.
He further explained that the pool of carbon credits available for trading will continue to expand while improvements are made to the National Registry System (SRN) and other supporting mechanisms to ensure smooth carbon trading. “Again, it’s not just about supply, but also about the attractiveness of the carbon itself,” Diaz emphasized.
Additionally, Diaz highlighted the importance of recognition from certification bodies, which remains a key concern for the international community. To address this, the government aims to boost demand by facilitating Mutual Recognition Arrangements (MRA) with various stakeholders. Indonesia has already established an MRA agreement with Japan, which was launched in 2024 at the 29th UN Climate Change Conference (COP29) in Baku, Azerbaijan in November 2024.
