August 27, 2025 | 06:54 pm
TEMPO.CO, Jakarta - Indonesia will place carbon trading at the center of its agenda during the 30th Conference of the Parties (COP30) to the UN Framework Convention on Climate Change (UNFCCC), scheduled to take place this November in Belém, Brazil
The government is pushing for a special session at the conference to connect potential sellers and buyers of carbon credits.
“We will explain and promote the potential of Indonesia’s carbon sales,” Deputy Minister of Environment Diaz Hendropriyono said in Jakarta on Wednesday, August 27, 2025.
Addressing the Indonesian delegation for COP30, Diaz explained that carbon trading is a market-based mechanism to reduce greenhouse gas emissions through the exchange of carbon credits.
Companies or countries that successfully cut emissions can sell their credits, while those that exceed emission limits must purchase them to offset their surplus.
The initiative is part of the Paris Agreement commitments signed in 2015, which seek to limit global warming to no more than 1.5 degrees Celsius above pre-industrial levels, a target that experts say has already been breached.
Target Buyers: Norway and South Korea
Diaz said several countries have shown interest in purchasing Indonesian carbon credits, including Norway and South Korea. These potential deals will be formalized through Memoranda of Purchase Agreements (MOPAs).
For Norway, Indonesia plans to offer a stock of 533 million tons of CO credits from the 2016–2020 period. Diaz revealed that Norway has expressed interest in acquiring around 12 million tons, possibly tied to renewable energy projects such as solar panels and floating solar installations.
South Korea, meanwhile, is eyeing credits from the palm oil sector, particularly from projects utilizing palm oil mill effluent (POME). Indonesia and Korea already have an MoU on carbon cooperation that runs until 2026. “We will assess whether this activity can continue under the current MoU or requires renewal,” Diaz said.
Market Value Still Unclear
Ary Sudijanto, Deputy for Climate Change Control and Carbon Economic Value Governance at the Environment Ministry, said there is currently no set target for carbon sales. However, interest has been expressed not only by Norway and Korea but also by Japan.
“The dollar value cannot be determined yet because project schemes vary,” Ary explained. “The more complex a project is, the greater the potential revenue. At this stage, no project has been finalized. Hopefully, COP30 will provide more clarity on pricing.”
COP30 Priorities
COP30 will focus on aligning UNFCCC agreements with the Paris Agreement, strengthening climate implementation initiatives, and ensuring transparency and accountability in pledges. A key outcome will be the Global Stocktake, a mechanism to evaluate collective progress toward the Paris goals.
Six pillars of action at COP30 include energy, industry, and transportation transition; conservation of forests, oceans, and biodiversity; transformation of agriculture and food systems; building urban resilience, infrastructure, and water; promoting human and social development; and facilitating and accelerating in terms of finance, technology, and capacity.
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