OJK: Implementation Of Rewards And Punishment Is Able To Improve Carbon Exchange Development

JAKARTA - Chief Executive of the Capital Market Supervisory, Derivative Finance, and Carbon Exchange of the Financial Services Authority (OJK) Inarno Djajadi said that the implementation of a reward and punishment system can build a supporting ecosystem for the development of carbon exchanges and achieve net zero emissions.

"For example, to achieve net zero emissions, it may also require rewards and punishment, for example through carbon exchanges and upper limits on industrial emissions," said Inarno Djajadi, quoted from Antara, Thursday, February 15.

He said that with the implementation of reward and punishment as well as the upper limit for these emissions, industry players must be able to reduce their emission rate, for example to 80 percent, or they will be subject to sanctions.

According to him, efforts to reduce emissions require technology development at many costs, so paying a carbon tax or buying a carbon unit can be an alternative for industry players who have not been able to reduce their emissions so they do not get sanctions.

"If the cost is too expensive, they might be able to pay a carbon tax or buy a carbon unit on the carbon exchange," said Inarno.

He also said that this carbon ecosystem development effort must be supported by all stakeholders, especially those who are the primary market of this sector.

"The stock exchange organizers are with us, but this is the secondary market, while the primary market is not with us, namely at the Ministry of Environment and Forestry and related agencies," he said.

Inarno stated that the launch of the carbon exchange in September 2023 was not enough to achieve the net zero emission 2060 target, so the surrounding ecosystem needs to be built as well.

"So, it's an ecosystem that must be built simultaneously, not only the carbon exchange itself, but also efforts to improve the ecosystem itself, whether it's from the regulatory side, is it possible that the policy for determining the upper limit must be changed or what it is like," he said.