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View all search resultsSet to officially launch in 2027, the cap-and-trade scheme will be separate from the voluntary carbon market as well as from the limited mandatory one for coal-fired power plants, both introduced in 2023.
While the move to open IDXCarbon internationally marks a milestone in Indonesia's green transition and offers many opportunities, the government needs to ensure that a host of technical and institutional elements are in place, lest it be seen as a superficial commitment to climate action.
Indonesia may have made a poor showing by sending low-ranking officials to COP16, but seeing as the President's brother is leading the delegation to COP29 later this month, this could be a sign that the government is finally getting serious about the country's positioning on global climate issues.
Businessman Hashim Djojohadikusumo, who has been appointed special presidential envoy for energy and the environment, will lead the Indonesian delegation at the United Nations climate summit in Azerbaijan, slated for Nov. 11 to 22.
By the estimates of Finance Minister Sri Mulyani Indrawati in 2023, Indonesia needs at least Rp 4 quadrillion (US$250 billion) to meet its Nationally Determined Contribution (NDC) and achieve its greenhouse gas emission reduction targets by 2030.
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