Indonesia carbon credits to be open for international trading. (Photo: IDXCarbon)
Indonesia will open its carbon credit market to international buyers for the first time on Jan. 20, with 1.7 million carbon credits available for trade. These credits can be purchased by countries as part of their Nationally Determined Contributions (NDCs).
However, some analysts believe Indonesia's entry into the international market could put further downward pressure on already weak carbon prices.
Indonesia carbon credits to enter the global market
The carbon trading platform, operated by the Indonesia Stock Exchange (IDX), announced on Jan. 13 that foreign entities will be allowed to participate in carbon credit trading. The carbon credits available are primarily sourced from the national electricity company (PLN) projects, including the Priok Block 4 gas power plant in North Jakarta and the Grati Block 2 combined-cycle power plant in Java, both of which have reduced carbon emissions through advanced technological transformations.
