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Environment Ministry Boosts Carbon Trade with SPEI Logo and Energy Ministry Deal
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S
ince the Indonesia Carbon Exchange (IDX Carbon) opened in September 2023, carbon trading has continued to evolve, and the Environment and Forestry Ministry (KLHK) is working to strengthen it through various policies, regulations and other supporting instruments.
As part of this effort, the environment ministry has launched the logo of the Indonesia Emissions Reduction Certification (SPEI) and signed an interoperability collaboration agreement with the Energy and Mineral Resources Ministry (KESDM) on exchanging and/or sharing data and information between the web-based National Registration System for Climate Change Control (SRN PPI) and the Application for Calculating and Reporting Electricity Generation Emissions (APPLE GATRIK) on Jan. 22, 2024 in Jakarta.
With the support of the United Nations Development Programme (UNDP) and the Japan Supplementary Budget (JSB), the environment ministry unveiled the official SPEI logo.
The logo symbolizes unity in achieving Indonesia’s nationally determined contribution (NDC) and represents the country’s commitment to reducing greenhouse gas (GHG) emissions and adapting to climate change. The logo design illustrates environmental awareness with leaves, clean energy with wind turbines and certification with a pen. The color scheme reflects a clean, emissions-free environment and courage in the face of climate change.
Environment and Forestry Minister Siti Nurbaya explained that the SPEI logo ensured quality and integrity through a transparent, accurate, complete, consistent and environmentally focused scheme.
The SPEI scheme is also regulated through Environment and Forestry Ministry Regulation No. 1131/MENLHK/PPI/PPI.2/10/2023 on the Indonesian certification scheme for the reduction of greenhouse gas emissions. To ensure the transparency, accuracy and environmental integrity of the SPEI scheme, a measurement, a reporting and verification (MRV) team and a methodology panel have been established.
The MRV team, formed under Environment and Forestry Ministry Regulation No. 1444/MENLHK/SETJEN/KUM.1/12/2023, is tasked with conducting a final review of the results of the validation and verification processes carried out by the Validation and Verification Body (LVV) of the National Accreditation Committee. The tasks of the Methodology Panel include assisting the MRV team in identifying, collecting and reviewing methodologies for calculating GHG emissions. Furthermore, an interconnected system is required for the synergized implementation of the Carbon Economic Value (NEK/carbon pricing) at the national level.
This event also marks a significant partnership between the environment and energy ministries, with the support of UNDP Indonesia and the JSB to enhance the capacities of the SRN and APPLE GATRIK for carbon trading. The two ministries’ collaboration agreement involves sharing data from the SRN and APPLE GATRIK to strengthen governance of integrated GHG emissions database. This shared system also establishes the foundation for effective carbon trading as well as the NEK in the power generation subsector.
Setting the NEK is intended to help Indonesia achieve its NDC targets, which include reducing GHG emissions by 31.89 percent by 2030 on its own effort and by 43.20 percent with international support.
The government has supported efforts to achieve the NDC targets through various regulations, including Presidential Regulation No. 98/2021 on the Implementation of NEK for Achieving National Contribution Targets and the Control of Greenhouse Gas Emissions and National Development. The regulations issued by the environment ministry include No. 21/2022 on the Implementation of NEK Procedures, No. 16/2022 on the Procedures for Implementing NEK in the Electricity Generation Subsector and No. 7/2023 on the Procedures for Carbon Trading in the Forestry Sector.
Other regulations include Financial Services Authority (OJK) Regulation No. 14/2023 on Carbon Trading Through the Carbon Exchange and OJK Circular No. 12/2023 on the Procedures for Carbon Trading through the Carbon Exchange.
