Indonesia to Explore Carbon Trading Partnerships at COP29, Strengthening Global Climate Cooperation
Jakarta, The Gulf Observer: Indonesia is set to explore carbon trading partnerships with several countries under Article 6 of the Paris Agreement at the upcoming United Nations Climate Change Conference (COP29) in November. Environment Minister Hanif Faisol Nurofiq announced the country’s strategic focus on climate finance and international cooperation in carbon markets after a preparatory meeting in Jakarta on Tuesday.
Minister Nurofiq highlighted that Indonesia’s delegation at COP29 will emphasize accelerating global efforts to reduce greenhouse gas emissions and discuss the implementation of Article 6, which outlines climate finance mechanisms. A key aspect will be Article 6.2, which facilitates international carbon trading frameworks between countries to drive collective emissions reduction.
Indonesia’s Nationally Determined Contribution (NDC) document, which details its emissions reduction goals, will be the foundation for these international partnerships, including a potential collaboration with Japan on Article 6.2 implementation. “The NDC will be calculated starting from 2021,” Nurofiq confirmed, emphasizing the country’s commitment to measurable climate action.
While specific details of the carbon trading collaboration were not disclosed, Special Envoy for Energy and Environment Hashim Djojohadikusumo, appointed by President Prabowo Subianto, is expected to announce more concrete steps on the implementation plan.
Djojohadikusumo underlined Indonesia’s substantial carbon trading potential, noting a reduction of 577 million tons of carbon dioxide equivalent (CO₂e) between 2018 and 2020. He projected an even larger reduction of 600 million tons of CO₂e from 2021 to 2023.
“This contribution, valued at approximately $10 per ton, could generate additional state revenue outside the budget, totaling around Rp190 trillion (around $12.07 billion),” he added.
Indonesia’s proactive stance at COP29 reflects its commitment to global climate goals and demonstrates the economic and environmental potential of carbon markets in achieving sustainable development and emission reductions.
