Jakarta – Indonesia expanded its climate policy direction towards low-carbon technology at COP30 in Belém, Brazil, by strengthening its partnership with Norway in international carbon trading. Through PT PLN (Persero), the government signed a Mutual Expression of Intent Generation-Based Incentive Programme with the Global Green Growth Institute (GGGI).
In a written statement on Thursday, 20 November, Indonesian Environment Minister Hanif Faisol Nurofiq said that this move puts Indonesia at the forefront of global carbon trading.
This agreement marks a new phase in climate relations between the two countries, which were previously dominated by nature-based solutions and are now moving towards technology-based solutions under Article 6 of the Paris Agreement. The programme has the potential to reduce emissions by up to 12 million tonnes of CO₂e, making it one of the largest carbon transactions within the Indonesia–Norway bilateral framework.
“Today we have reached an important milestone that will determine the next steps in Indonesia–Norway cooperation, and show the world that we are capable of becoming leaders in the implementation of carbon trading through the Article 6 scheme of the Paris Agreement,” said Hanif.
He explained that Indonesia has so far focused on nature-based contributions through the Result-Based Contribution (RBC) scheme. However, the latest signing shows Indonesia’s readiness to enter a new realm—combining technology and industrial decarbonisation to expand mitigation sources.
“This milestone reaffirms Indonesia’s commitment to becoming a global leader, as directed by President Prabowo Subianto in strengthening renewable energy through multisectoral carbon trading,” said Hanif.
On the Norwegian side, Minister of Climate and Environment Andreas Bjelland Eriksen welcomed the cooperation. He assessed that the Indonesia-Norway collaboration is moving towards a more strategic stage.
“For Norway, the successful implementation of this programme is only the beginning. We are confident that this joint initiative will pave the way for broader collaboration in the field of green technology and investment,” he said.
Eriksen also expressed optimism about Indonesia’s ability to lead the high-integrity carbon market. “We believe that this first programme can demonstrate that Indonesia is ready for this kind of initiative and has the capacity to expand its scale,” he added.
PLN, as the technical implementer, views this cooperation as strengthening the national energy transition agenda. PLN’s Director of Technology, Engineering, and Sustainability, Evy Haryadi, said this collaboration proves that carbon trading is not only a financial instrument but also part of the global climate solution.
“Climate change is a global issue that requires cooperation and collective solutions from around the world. This agreement is a concrete step by PLN and the Indonesian government to address the increasingly apparent climate disaster,” he said.
According to Evy, this signing will also pave the way for large-scale carbon financing schemes for renewable energy projects in Indonesia. “With this partnership with GGGI, representing Norway, PLN is not only preparing the world’s first bilateral carbon transaction, but also laying the foundation for the first and largest carbon financing scheme for renewable energy projects in Indonesia,” she explained.
This agreement also introduces the Generation-Based Incentive (GBI) scheme, which is designed to support the achievement of Indonesia’s NDC targets, accelerate the development of new and renewable energy, and reduce dependence on coal. The document now serves as the basis for drafting the Mitigation Outcome Purchase Agreement (MOPA), which will govern the purchase of Internationally Transferred Mitigation Outcomes (ITMOs) from Indonesia. (Hartatik)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2025)
