Ecobiz.asia — Indonesian geothermal developer PT Pertamina Geothermal Energy Tbk (IDX: PGEO) is accelerating the transition of its carbon project portfolio to the global carbon market mechanism under Article 6.4 of the Paris Agreement.
The company, supported by climate advisory firm South Pole, is currently coordinating with Indonesia’s Ministry of Environment to complete the transition process.
One of the key steps involves submitting a Host Country Approval to the United Nations Framework Convention on Climate Change in March 2026, a prerequisite for the global commercialisation of carbon credits generated from Indonesia’s geothermal projects.
In parallel, PGE and South Pole have signed a cooperation statement to optimise the marketing and sale of carbon credits generated from the company’s geothermal operations at Ulubelu and Karaha.
In a statement released Tuesday (March 11, 2026), PGE said the initiative forms part of its broader efforts to strengthen the energy sector’s contribution to greenhouse gas emission reduction and support the implementation of Indonesia’s carbon economic value (NEK) framework.
The company said the development of geothermal-based carbon projects is also part of its strategy to tap opportunities in both domestic and international carbon markets.
PGE currently manages a carbon project portfolio with an estimated emission reduction potential of around 1.5 million tonnes of CO₂ equivalent per year. The projects have been developed under various standards, including the Clean Development Mechanism, Gold Standard, and are registered under Indonesia’s Sistem Registri Nasional.
The portfolio covers several of PGE’s geothermal working areas, including Kamojang, Karaha, Ulubelu, Lahendong, and Lumut Balai.
Through the marketing cooperation, the company targets the commercialisation of at least 110,000 tonnes of CO₂e carbon credits in 2026.
PGE said strengthening Indonesia’s carbon economic ecosystem is crucial to support the country’s Nationally Determined Contribution (NDC) targets and its goal of achieving net zero emissions by 2060.
The company added it will continue expanding geothermal development while leveraging carbon instruments as part of its low-emission energy transition strategy. ***
