Jakarta: To earn money to support its ambitious domestic climate targets, Indonesia opened its carbon exchange to foreign buyers on Monday, January 20.
The action makes it possible for foreign investors to join a market that was opened to domestic participants in September 2023.
Activities that prevent or lessen carbon dioxide emissions, a powerful greenhouse gas, produce carbon credits.
Businesses looking to “offset” or cancel out part of their own emissions can buy them to meet laws or enhance their “green” image. Indonesia is one of the most polluting countries in the world, and its expanding economy primarily depends on coal.
Its multibillion-dollar investment plan to wean its power system off of coal, agreed upon with the United States and European countries in 2022, has not advanced much.
Last year, Prabowo Subianto, the country’s new president, announced plans to close hundreds of coal and fossil fuel power units by 2040 and advance the country’s carbon neutrality target by ten years to 2050.
The government has stated that it intends to construct more than 75 gigawatts of renewable energy capacity by 2040, although it has not yet provided many specifics on how it plans to do so.
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