Print History, RI Officially Sells 12 Million Tons Of Technology-Based Carbon To Norway

Minister of Environment/Head of BPLH, Hanif Faisol Nurofiq. (Photo: Doc. KLH)

JAKARTA Indonesia has again recorded an important milestone in the energy transition and the green economy.

PT PLN (Persero) officially agreed on the sale of Internationally Transferred Mitigation Outcomes (ITMO) equivalent to 12 million tons of carbon to Norway.

This agreement is the world's first technology-based carbon trade transaction run under Article 6.2 of the Paris Agreement.

The transaction marks a significant shift in Indonesia's carbon portfolio, from being dominated by the forestry sector to clean energy technology.

The volume of 12 million tons of carbon sold is the result of reducing emissions from the development of renewable energy power plants run by PLN, such as PLTA, PLTS, to PLTB.

The outcome of emission reduction is considered worthy of international trade and purchased by Norway as part of the country's climate commitment.

This amount is equivalent to reducing emissions from around 2.6 million cars for one year.

For more than a decade, the cooperation between Indonesia and Norway has focused on a natural-based scheme through the Result-Based Contribution (RBC), which generates funding of up to USD 260 million for Indonesia due to its success in protecting forests.

Through this latest transaction, Indonesia is entering a new era of technology-based carbon trading marking the diversification of the national carbon economy.

"We view this collaboration as not the end, but the beginning of the real implementation phase," said the Minister of Environment/Head of BPLH, Hanif Faisol Nurofiq in a written statement received by VOI, Friday, November 14.

He emphasized that Indonesia wants to ensure that the carbon market that is built has high integrity, is transparent, and provides direct benefits for the community.

Funding from the sale of carbon credit will be directed to support the national energy clean energy agenda and electricity distribution. Some of the economic benefits that are the focus include:

Accelerate the construction of renewable energy plants. PLN targets that in the next 10 years, 76 percent of new plants will come from green energy according to President Prabowo Subianto's direction.

Equitable access to electricity. Funding will help expand the electricity grid to the 3T region. This agreement is also the first step towards the final Mitigation Outcome Purchase Agreement (MOPA) agreement which is targeted for completion by the end of December 2025.

The creation of green jobs. Clean energy projects are projected to open the potential for new labor absorption.

Climate adaptation funds. As much as 5 percent of the value of transactions (Share of Proceeds) will enter the National Climate Fund to strengthen climate change impact management programs.

Menteri Iklim dan Lingkungan Norwegia, Andreas Bjelland Eriksen, memberi apresiasi terhadap kemajuan Indonesia.

Menurutnya, Indonesia telah menunjukkan kesiapan teknis dan kapasitas politik dalam menerapkan mekanisme perdagangan karbon berintegritas tinggi.

"Ini merupakan sinyal kuat bagi para investor global dan pemerintah dunia," ucapnya.

Penjualan 12 juta ton kredit karbon ini menegaskan posisi Indonesia sebagai negara pionir dalam perdagangan karbon berbasis teknologi.

Langkah tersebut tidak hanya memperkuat diplomasi iklim Indonesia, tetapi juga membuka peluang ekonomi baru yang berpotensi mempercepat transisi menuju ekonomi hijau dan pembangunan berkelanjutan.

The Norwegian Minister of Climate and Environment, Andreas Bjelland Eriksen, gave his appreciation for Indonesia's progress.

According to him, Indonesia has shown technical readiness and political capacity in implementing the carbon trading mechanism with high integrity.

"This is a strong signal for global investors and the world government," he said.

The sale of 12 million tons of carbon credit confirms Indonesia's position as a pioneer country in technology-based carbon trading.

This step not only strengthens Indonesia's climate diplomacy, but also opens up new economic opportunities that have the potential to accelerate the transition to a green economy and sustainable development.