Indonesia takes a monumental step in climate action, inaugurating its first carbon trade on Sept 26. Can this market be the key to a greener future?
Indonesia is getting ready to start its first-ever carbon trade next week. This move will allow companies and financial groups to balance out their emissions. It will also help raise money for projects that aim to reduce carbon in the environment, officials announced on Monday.
Indonesia is among the top ten countries in the world releasing the most greenhouse gases. However, it has promised to have zero net carbon emissions by 2060. The upcoming carbon market is seen as a vital step to achieve this goal and find funding for climate-friendly projects.
According to Reuters,
To make sure everything is ready for the start next week, the environment ministry has chosen four auditors. These auditors will check that carbon reduction activities are real and effective, noted Wahyu Marjaka, a director at the environment ministry, at the seminar.
It is not yet clear where the trading will happen. The Indonesia Stock Exchange has shown interest in being the platform for this trading, having applied to be the operator earlier this month.
Earlier this year, Jakarta began the first stage of required carbon trading for coal power plants. Initially, the government wanted to set pollution limits for industries that release a lot of carbon and tax those exceeding the limit without any offset. However, this tax idea was dropped because of worries it might slow down economic growth.
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