Indonesia’s carbon exchange goes global: A green milestone?

Indonesia has taken a bold step in the global fight against climate change by opening its carbon exchange to international markets. This move allows companies worldwide to offset their emissions while bolstering Indonesia’s ambitious goal to phase out coal by 2040.

The international launch builds on the country’s domestic carbon exchange, inaugurated in September 2023, which was widely praised for driving Indonesia’s climate targets. Director of the Indonesia Stock Exchange, Iman Rachman, hailed the moment as historic, emphasising Indonesia’s emergence as a global leader in climate action. “This initiative demonstrates our readiness to contribute meaningfully to global emission reduction targets,” he said.

Crucial to this success has been the active participation of listed companies and their subsidiaries, which accounted for a remarkable 83% of the total carbon trading volume. Rachman expressed hope that their commitment would inspire other businesses in Indonesia to join this dynamic market.

The initiative underscores Indonesia’s pivotal role in the global green economy, attracting attention from international players seeking innovative ways to meet their sustainability goals. As the world focuses on collaborative climate solutions, Indonesia’s carbon exchange stands as a shining example of how nations can leverage market mechanisms to drive meaningful change.

By opening its carbon exchange to the world, Indonesia has positioned itself not just as a participant but as a leader in the urgent mission to mitigate climate change.