The Indonesian government is opening doors for the integration of voluntary carbon market standards and methodologies in the country’s carbon trading system, according to a report by Ecobiz.asia.
This announcement was made by the Minister of Environment, Hanif Faisol Nurofiq, during a socialization event in Jakarta on December 10, 2024. The event focused on the outcomes of the recent COP29 UNFCCC Climate Change Conference held in Baku.
Hanif shared key outcomes from COP29, including the introduction of the Baku Climate Unity Pack, which outlines several critical areas for global climate action. One major point was the establishment of the New Collective Quantified Goal (NCQG), which sets a climate change funding target of US$300 billion per year by 2035. Additionally, the conference saw strengthened commitments to climate change mitigation.
A significant milestone was the agreement on Article 6 of the Paris Agreement, which provides mechanisms for cooperation to support Nationally Determined Contributions (NDCs). Hanif welcomed this development, particularly the operationalization of Article 6, which will facilitate international carbon trading.
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“As part of this, Indonesia will optimize carbon trading opportunities by strengthening national control mechanisms, adhering to the processes within the UNFCCC framework,” Hanif explained.
During the COP29 event, Hanif also met with developers of voluntary carbon market standards to explore potential collaborations. He emphasized that Indonesia is open to recognizing existing global methodologies.
“We are fully open to incorporating methodologies from international developers such as VERRA, ACRIS, and the Gold Standard,” he said.
The move aims to enhance Indonesia's carbon trading landscape, with plans to scale up domestic carbon trading beginning in January 2025, in support of meeting the country’s NDC targets.
Editing by Reiner Simanjuntak
