Indonesia to launch voluntary carbon market

WARSAW Wed Nov 13, 2013 12:28am IST

WARSAW Nov 12 (Reuters) - Indonesia, one of the world's biggest emitters of greenhouse gases, is planning to launch a voluntary carbon trading scheme that could link to other countries if successful, a senior government official said on Tuesday.

The South East Asian nation is lining up carbon trading as one of several policies to cut its fast-growing greenhouse gas emissions, according to Dicky Edwin Hindarto, head of the carbon trade department at Indonesia's National Council on Climate Change.

"We will utilise all possibilities (to cut emissions), including markets, but we want to test it first," he told Reuters on the sidelines of the United Nations climate conference in the Polish capital.

While there is no set timetable for the voluntary market, Hindarto said Indonesia is developing voluntary emission reduction certificates that domestic carbon emitters can use to offset their emissions.

If the scheme proves successful, Indonesia could expand domestic coverage and seek to link the market with similar schemes in other countries, he said.

Indonesia has estimated it would emit 2.95 billion tonnes of carbon dioxide equivalent in 2020 without new policies.

The government has pledged to bring 2020 emissions to 26 percent below the business as usual levels, and as much as 41 percent under if it receives international funding.

The main reasons for the high emissions - only China and the United States emit more according to a World Bank and UK government report - are rapid deforestation and burning of peat lands.

Indonesia is the latest of a growing number of Asian countries to use markets to slow down rapidly growing emissions amid high economic growth.

China has launched the first of seven planned regional pilot markets ahead of a national trading scheme later in the decade.

South Korea will have a mandatory emissions market from 2015, while Thailand plans a voluntary market from the same year. Vietnam said last year it is considering a market for CO2 trading in 2018. (Reporting by Stian Reklev; editing by Alister Doyle and William Hardy)

  • Most Popular
  • Most Shared

Coal Sector

REUTERS SHOWCASE

Border Talks

Border Talks

India names Ajit Doval as special envoy for China border talks.  Full Article 

WTO Deal

WTO Deal

U.S. seeks to step up India trade talks  Full Article 

Plunging Oil Prices

Plunging Oil Prices

Oil price seen falling to $60 if OPEC does not cut output  Full Article 

NBFC Sector

NBFC Sector

Reserve Bank planning more measures for NBFCs.  Full Article 

Auto Sector

Auto Sector

Hyundai Motor, Kia Motors lift 2014 global sales target on China, emerging markets  Full Article 

Raising Money

Raising Money

SpiceJet says in early talks with investors for fresh capital.  Full Article 

Market Eye

Market Eye

Sensex, Nifty rise to record after China, ECB stimulus boosts risk appetite.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage