Jakarta, IO – President Joko “Jokowi” Widodo launched the Indonesian Carbon Exchange at the Indonesian Stock Exchange (IDX), Jakarta, Tuesday (26/9).
Jokowi said Indonesia has extraordinary potential in nature-based solutions. According to him, Indonesia the only country with 60 percent of this potential, per Kompas Wednesday (27/9).
He further emphasized that a number of situations such as rising temperatures, drought, floods and pollution meant that Indonesia should step up efforts to overcome the threat of climate change. The carbon exchange is one such solution.
“Concrete steps are needed and the carbon exchange that we now launch is one of them; it could be a big step for Indonesia to achieve its emissions targets,” said Jokowi.
Jokowi said the carbon exchange is a real contribution to the country’s fight against the climate crisis. “The proceeds from this trade will be reinvested in efforts to protect the environment, especially through carbon emission reduction measures,” he said.
The carbon exchange is a carbon trading system or carbon credit buying and selling system which is carried out by IDX through the IDXCarbon index. It will regulate carbon emission trading and permits, as well as record ownership of the carbon units.
In this scheme, every decrease in one ton of carbon will get a certificate which can be traded at the carbon exchange. One form of transaction is that companies that are able to reduce carbon emissions can sell carbon credits to companies that exceed carbon emission limits. (un)