Wednesday, December 6, 2023

Indonesia Stock Exchange (IDX) Launches Carbon Trading Operations

The Indonesia Stock Exchange introduces carbon trading to support emission reduction goals, promoting renewable energy and retiring coal power plants. Stringent regulations ensure responsible participation.

Indonesia Stock Exchange Launches Carbon Trading Operations

The Indonesia Stock Exchange (IDX) has launched carbon trading operations in support of the country’s emission reduction goals. The initiative seeks to facilitate the transition to renewable energy and the phase-out of coal power plants. With active participation from various sectors, the IDX aims to incentivize positive environmental practices and bring about significant changes to the energy sector. This aligns with Indonesia’s proactive approach to achieve its ambitious emission reduction target of 31.89 percent by 2030, in line with the country’s broader strategy for a greener economy.

Regulations for Carbon Trading on IDX

To ensure the smooth functioning of the carbon trading market, the IDX has implemented a comprehensive set of regulations. Key guidelines include the IDX Decree No. KEP-00296/BEI/09-2023 for Carbon Units Trading and the IDX Decree No. KEP-00297/BEI/09-2023 for Carbon Exchange Users. These regulations define the eligibility criteria and requirements for entities to participate in the carbon exchange. The goal is to establish a robust regulatory framework to maintain the integrity and transparency of carbon trading operations.

Eligibility and General Requirements for Carbon Exchange Participation

According to the Decree on Carbon Exchange Users, entities eligible for participating in the carbon exchange include various stakeholders from different sectors. To qualify for participation, entities must meet certain general requirements to ensure their commitment to environmental sustainability and active contribution to emission reduction efforts. The IDX aims to foster a highly responsible and impactful carbon trading market on the exchange platform by setting stringent eligibility criteria.

Source : Indonesia Stock Exchange (IDX) Launches Carbon Trading Operations


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