26 September 2023
Following the issuance of a carbon exchange license to the Indonesia Stock Exchange (IDX) by the Financial Services Authority (Otoritas Jasa Keuangan or OJK) on 18 September 2023, the IDX finally launched its first carbon trading today, 26 September 2023 (link). The launch of carbon trading on the IDX takes Indonesia one step further towards fulfilling the country's commitment to achieve an unconditional emission reduction target of 31.89% in 2030. As mandated by OJK Rule No. 14 of 2023 on Carbon Trading on Carbon Exchange, IDX has issued several regulations to administer the implementation of carbon trading, among others: (i) IDX Decree No. KEP-00296/BEI/09-2023 on Regulation of Carbon Units Trading on Carbon Exchange ("Decree on Carbon Trading") and (ii) IDX Decree No. KEP-00297/BEI/09-2023 on Regulation on Carbon Exchange Users ("Decree on Carbon Exchange Users").
In this alert, we highlight some provisions with respect to the trading of carbon units on the IDX and the general qualifications of carbon exchange users under these decrees.
Following the issuance of a carbon exchange license to the Indonesia Stock Exchange (IDX) by the Financial Services Authority (Otoritas Jasa Keuangan or OJK) on 18 September 2023, the IDX finally launched its first carbon trading today, 26 September 2023 (link). The launch of carbon trading on the IDX takes Indonesia one step further towards fulfilling the country's commitment to achieve an unconditional emission reduction target of 31.89% in 2030. As mandated by OJK Rule No. 14 of 2023 on Carbon Trading on Carbon Exchange, IDX has issued several regulations to administer the implementation of carbon trading, among others: (i) IDX Decree No. KEP-00296/BEI/09-2023 on Regulation of Carbon Units Trading on Carbon Exchange ("Decree on Carbon Trading") and (ii) IDX Decree No. KEP-00297/BEI/09-2023 on Regulation on Carbon Exchange Users ("Decree on Carbon Exchange Users").
In this alert, we highlight some provisions with respect to the trading of carbon units on the IDX and the general qualifications of carbon exchange users under these decrees.