Indonesia opens carbon exchange to international buyers to support climate goals
Date
1/21/2025 3:03:47 AM
(MENAFN) Indonesia opened its carbon exchange to international buyers on Monday as part of its efforts to raise funds to meet its ambitious climate targets. This move follows the launch of the exchange in September 2023, which was initially reserved for domestic participants.
Carbon credits are generated through activities that prevent or reduce carbon dioxide emissions—a potent greenhouse gas. Companies can purchase these credits to offset or neutralize their own emissions, either to comply with environmental regulations or to enhance their "green" image.
As one of the world’s largest polluters, Indonesia is heavily reliant on coal to fuel its growing economy. Despite this, the country has made limited progress on a multi-billion-dollar investment plan, agreed upon with the United States and European nations in 2022, to reduce its dependence on coal for its power grid.
Under President Prabowo Subianto, Indonesia has advanced its carbon neutrality target by a decade, now aiming for 2050 instead of 2060. The president has also pledged to shut down hundreds of coal and fossil-fuel power plants by 2040. The government plans to build more than 75 gigawatts of renewable energy capacity by 2040, although the specifics of how this will be achieved remain unclear.
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