Indonesia is set to launch a carbon exchange in the second half of 2022, as part of the country’s effort to increase renewable energy use and achieve net-zero emissions by 2060. The exchange will have a cap-and-trade system where pollution levels are limited and carbon allowances can be traded by business entities. Only entities operating in Indonesia will be allowed to trade on the exchange, which will be overseen by the country’s financial services authority and environment ministry. The launch of the carbon exchange comes after the Indonesian government delayed the rollout of a planned carbon tax for emissions that had not been offset by carbon credits due to adverse global economic conditions.

Source: ESGNews