Exciting News: Indonesian Carbon Exchange Launched!

On Tuesday, September 26, 2023, President Joko Widodo officially launched the Indonesian Carbon Exchange (IDXCarbon), an important milestone in Indonesia’s efforts to address climate change and fulfil its commitment to environmental sustainability.

IDXCarbon is a carbon trading platform that provides an opportunity for companies and projects in Indonesia to participate in the sale of credit on carbon dioxide and greenhouse gas production. IDXCarbon or carbon trading indonesia has become an important milestone in Indonesia's commitment to decarbonization towards Net Zero Emission by 2060 or earlier.

Carbon Trade: A Step Toward Sustainability

Carbon trade is one of the most effective instruments in reducing greenhouse gas emissions and supporting global goals to control climate change. The concept is simple: companies that are able to reduce carbon emissions below the set limits can sell their remaining emissions to companies or other projects that need them. It provides economic incentives for companies to adopt cleaner technologies and practices.

Carbon trading itself is carried out through a carbon exchange, a system that regulates carbon trading and/or records of ownership of carbon units. Units are proof of ownership of carbon in the form of certificates or technical approvals specified in 1 (one) tonne of carbon dioxide recorded in the National Register System of Climate Change Control (SRN PPI).

Transparency and Efficiency Through IDXCarbon

The key role of IDXcarbon is in connecting sellers and buyers of carbon credits in Indonesia. In accordance with Financial Services Authority (FSA) Regulation No. 14 of 2023 on Carbon Trading Through the Carbon Exchange, IDXCarbon has been designed to be a carbon exchange operator that meets the standards of transparency, regularity, fairness, and efficiency.

The platform provides price information openly, ensuring that all parties involved in carbon trading have equal access to relevant price data. It not only promotes market integrity, but also allows companies to make decisions based on accurate information.

The IDXCarbon Trading Mechanism

IDXCarbon provides a variety of trading mechanisms to meet the needs of a wide range of stakeholders. Currently, there are four trading mechanisms available:

• Auction: This mechanism regulates an auction of carbon emission rights, which allows buyers to compete to obtain the desired carbon credit.
• Regular Trading: This is a continuous trading that takes place in the secondary market, where companies can buy and sell existing carbon credits.
• Negotiated Trading: The mechanism allows companies to conduct direct negotiations for carbon credits with other parties.
• Marketplace: It is an online trading platform that facilitates carbon credit transactions in the secondary market.

The Role of SGS in Sustainability

In order to sustainability goals and maintain the integrity of carbon trade, companies like SGS play an important role. SGS is an independent service provider that offers a range of services in terms of Sustainability Assurance, including ESG (Environmental, Social, and Governance) services and ISO 14064-1 greenhouse gas (GHG) certification.

SGS helps companies and projects to measure, manage, and report their environmental impact, including greenhouse-gas emissions. In addition, SGS also provides training and certification for individuals and organizations who want to become experts in carbon emission measurement and management IDXCarbon, along with the support of companies like SGS, is bringing Indonesia closer to a greener and more sustainable future. Through carbon trading and comprehensive sustainability services, we can expect significant reductions in emissions and positive changes in global efforts to protect our environment.