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)

Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Earnings Season

Reuters Showcase

Obama In India

Obama In India

In parting shot, Obama prods India on religious freedom.  Full Article 

Market Rally

Market Rally

Sensex, Nifty hit record high for fifth straight session.  Full Article 

Restructuring

Restructuring

Max India to be split into three separate companies.  Full Article 

India’s Male Tenor

India’s Male Tenor

India’s lone male tenor wants to ‘Indianise’ opera  Full Article 

Indian Equities

Indian Equities

Hornbill raising $250 mln to invest in equities - partner.  Full Article 

Ratings Downgrade

Ratings Downgrade

S&P downgrades Russia's sovereign credit rating to "junk".  Full Article 

Facebook Outage

Facebook Outage

Facebook takes blame for service outages, which hit wider Web.  Full Article 

Reuters India Mobile

Reuters India Mobile

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