Carbon Exchange Launches Next Week, Here's OJK's Directions

Illustration (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) is preparing to release a carbon exchange on September 26, 2023. This strategy step also marks a new chapter in reducing greenhouse gas emissions.

Citing information released by the authorities, it was stated that the launch of the carbon exchange was an important milestone in environmental sustainability that was in line with economic activities.

"OJK supports success and trade through carbon exchanges. We maintain it until it is successful and the results are re-invested in efforts to officially reduce emissions," said OJK Board of Commissioners Mahendra Siregar as quoted on Sunday, September 24.

According to Mahendra, Indonesia is the only country that is almost 70 percent of its fulfillment of carbon emission reductions based on the natural sector.

"This is the opposite of other countries that have more carbon emission reductions from the energy sector," he said.

Mahendra explained, in the future to pursue the target of reducing greenhouse gas emissions, according to him, OJK will immediately carry out a program to increase the capacity of all parties related to this program throughout Indonesia in collaboration with various parties.

"We are ready to facilitate, with participants from Sabang to Merauke, determine who is right for us to invite together to build joint capacity. That is a determinant, our ability. There is a methodology that we do not understand, that is a part that needs to be studied and developed," he stressed.

For information, the OJK has previously issued technical regulations on Financial Services Authority Regulation Number 14 of 2023 concerning Carbon Trading through the Carbon Exchange (POJK 14/2023) with the Circular Letter of the Financial Services Authority Number 12/SEOJK.04/2023 concerning Procedures for the Implementation of Carbon Trading through the Carbon Exchange (SEOJK 12/2023).

POJK and SE are part of OJK's efforts to support the Government in implementing climate change control programs through reducing greenhouse gas (GHG) emissions, in line with the Paris Agreement's commitment, as well as preparing domestic legal instruments to achieve the GHG's emission target.

In this context, OJK's task is to supervise Carbon Trading through the Carbon Exchange, which includes:

· Carbon Exchange Operators

· Market infrastructure supporting Carbon Trade

· Carbon Exchange Service Users

· Transactions and settlement of Carbon Unit transactions

· Carbon Trading Governance

· Risk management

· Consumer protection

· Pihak, produk, dan/atau kegiatan yang berkaitan dengan Perdagangan Carbon melalui Bursa Carbon.