Wednesday, 14 August 2024.
After posts about Malaysia and China, today we talk about another carbon credit market in Asia.
Republic of Indonesia is the 4th most populous country in the World, with 275 million inhabitants. It is the World's largest archipelagic state, meaning that including its oceanic portion it is as large as Europe continent. Indonesia is also one of the 13 countries in the World crossed by the Equator line.
“Our carbon exchange potential reaches Rp 3,000 trillion or even more. This is a huge number, which will certainly open new economic opportunities that are sustainable and environmentally sound, in line with the global shift to green economy,” said the President of Indonesia, in his official statement, included in the press release that you can read here.
Since the launch of the Indonesian Carbon Exchange until May 2024, there have been 62 licensed issuers with an accumulated value of IDR36.77 billion and a total volume of 608,427 tCO2e.
As a reference, until February 2024, there have been 50 licensed issuers with an accumulated value of IDR 31.36 billion and a total volume of 501,910 tCO2e traded.
This represents a 20% trade increase both in terms of value and tons of CO2 in about three months.
Not to mention the 25% increase in licensed issuers, indicating attractiveness of Indonesian carbon credits.
Indonesia Exchange was given a business license by the OJK (Otoritas Jasa Keuangan), the Indonesia Financial Services Authority, also regulator and supervisor of carbon trading in that country.
If interested, click here to navigate the 36 articles and explanations of the original regulation, POJK No. 14/2023. (And if you don’t read Indonesian, try using the camera mode from Google Translator App ;-)
Click at the image below for the June 2024 market update by OJK, the Indonesia Financial Services Authority.
Great to see that carbon market data became part of the official monthly financial overview from Indonesia.
According to McKinsey Nature Analytics, Indonesia pairs Brazil ranking 1st in the World in terms of potential of carbon crediting nature-based solutions (NBS). Refer to the article “Look to the trees: How carbon markets can help countries achieve their climate targets” for more details.
Also worth remembering that mid 2022 Indonesia, Brazil and Congo were on the headlines for trying to join forces around (the value of) their forests. Since then, the spotlight turned to enhancing integrity and the so-called MRV, measurement, reporting, and verification of NBS carbon credits.
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