Ecobiz.asia – LX International, a South Korea-based energy company, has secured regulatory approval that allows it to monetise carbon emission reductions generated from its renewable energy projects in Indonesia.
In a press statement cited on Thursday (Feb. 12, 2026), the company said its Hasang hydropower project had received official approval last month from the Indonesian Ministry of Environment as a carbon reduction project under Article 6.4 of the Paris Agreement.
The approval makes the Hasang project the first renewable energy project in Indonesia to be formally cleared for international transfer of emission reductions under the Paris Agreement mechanism since it entered into force in 2021.
Article 6.4 establishes a United Nations-led framework that enables the international transfer and use of verified greenhouse gas emission reductions, replacing the Kyoto Protocol’s Clean Development Mechanism.
With the approval in place, LX International said it has opened a pathway to monetise carbon credits generated from its renewable energy assets in Indonesia. Following United Nations approval and subsequent procedural steps, the company plans to pursue utilisation options including conversion into domestic carbon credits or sales in global carbon markets.
“This approval represents a meaningful achievement of our new growth initiatives, combining our capabilities in operating renewable energy assets with our carbon credit business,” an LX International official said in the statement.
The official added that the approval was significant as it established a foundation for monetising overseas carbon credits by linking them to both domestic and global carbon markets.
Building on this milestone, LX International plans to establish a carbon credit portfolio in Indonesia totalling around 310,000 tonnes annually. This includes approximately 210,000 tonnes from the Hasang hydropower project and 100,000 tonnes from a palm plantation-based biogas power generation project.
The Hasang hydropower plant, located in North Sumatra, has an installed capacity of 41 megawatts and generates electricity by utilising natural water elevation. The facility produces enough power to meet the annual electricity needs of about 150,000 households.
LX International is also preparing to transition emission reductions from its biogas power generation project in West Kalimantan to the Paris Agreement mechanism. The waste-to-energy project captures biogas from palm plantation wastewater and converts it into electricity.
“The project is also meaningful in that it contributes to achieving national greenhouse gas reduction targets through international mitigation initiatives,” the official said. ***
