Roadmap To Net Zero Emissions: Optimizing The Carbon Trading Through Carbon Exchange

Background

Indonesia is strengthening its efforts to achieve Indonesia's Net Zero Emission by 2060. In August 2023, the Financial Service Authority (Otoritas Jasa Keuangan or "OJK") issued OJK Regulation No. 14 of 2023 on Carbon Trading Through Carbon Exchange ("OJK Reg 14/2023"). This long-awaited regulation is supplementary to Law No. 4 of 2023 on Development and Reinforcement of the Financial Sector on the significance of Carbon Exchange, and it is deemed a crucial step to achieving Indonesia's sustainability target as well as commitment to the low emission future.

To implement this regulation, the Indonesia Stock Exchange with the Presidential office of the Republic of Indonesia officially launched the Indonesia Carbon Exchange ("IDX Carbon") in September 2023, after obtaining the Carbon Exchange Business License issued by OJK. Business actors may participate in Indonesia's carbon trading by accessing https://www.idxcarbon.co.id/.