Indonesia launched its first carbon credit exchange on Tuesday to allow companies to offset their emissions, with the country aiming for carbon neutrality in 2050.
As the world’s fourth most populous country and one of the biggest polluters, particularly due to its vast fleet of coal-fired power plants, the archipelago negotiated a $20 billion ($18.8 billion) financing deal during a G20 summit in Bali a year ago ) to reduce dependence on coal.
This agreement, which provides funding in particular from the United States, France, Canada and the United Kingdom as well as international institutions, is intended to enable Indonesia to advance its goal of carbon neutrality by ten years, i.e. by 2050.
“The launch of this first carbon credit exchange in Indonesia” represents “a real contribution by Indonesia to the global fight against the climate crisis,” Indonesian President Joko Widodo said on Tuesday.
The trading potential of this exchange is estimated at at least 194 billion dollars (183 billion euros), the president added. Trading takes place on the Indonesian Stock Exchange under the supervision of the Financial Services Authority (OJK).
At the opening of trading on Tuesday, around fifteen transactions were recorded with the equivalent of 459,000 tonnes of carbon dioxide.
Indonesia is the world’s largest coal exporter and environmentalists are questioning the government’s climate commitments as it continues to build coal-fired power plants.
According to these environmentalists, these power plants are responsible for the severe air pollution in Jakarta in recent weeks.