Indonesia Prepares Energy Sector Carbon Trading Rules, Targets Up to US$7.7 Billion in Green Financing

MORE ARTICLES

Ecobiz.asia — Indonesia’s Ministry of Energy and Mineral Resources (ESDM) is preparing new regulations for carbon trading in the energy sector as part of efforts to strengthen the country’s carbon market governance and unlock potential green financing estimated at up to US$7.7 billion annually.

The regulation, currently being drafted under a proposed Ministerial Regulation on Carbon Trading Through Greenhouse Gas (GHG) Emission Offsets in the Energy Sector, is expected to provide a legal framework for carbon offset transactions and support Indonesia’s transition toward a low-carbon economy.

Director General of New, Renewable Energy and Energy Conservation (EBTKE), Eniya Listiani Dewi, said the energy sector plays a critical role in helping Indonesia achieve its Net Zero Emission (NZE) target by 2060 or sooner.

“This is a very significant challenge, and we hope these efforts will accelerate progress toward Net Zero Emission by 2060, or even earlier. The energy sector will be the backbone,” Eniya said, as quoted on Monday (May 25, 2026).

Read also:  Gold Standard Launches G-RESET Methodology to Expand Carbon Finance for Renewable Energy Projects

Indonesia has committed to reducing greenhouse gas emissions by 31.89% through domestic efforts and up to 43.20% with international support by 2030. Under its Second Nationally Determined Contribution (NDC), the country is targeting net emissions in the energy sector of between 1.110 billion and 1.336 billion tons of CO2 equivalent by 2035.

To support the target, the ministry recently held a public consultation on the draft regulation involving government institutions, energy companies, validation and verification agencies, academics, and international organizations.

According to Eniya, carbon pricing and carbon offset mechanisms are viewed as strategic instruments to create economic incentives for emission reductions, improve the financial viability of low-carbon projects, and attract new financing into the energy sector.

Read also:  Verra Approves First Carbon Credits Under Food Loss and Waste Methodology

She said the mechanism could potentially increase Indonesia’s annual green investment inflows by around US$7.7 billion.

Through the new regulation, the government aims to ensure legal certainty for GHG emission offset implementation in the energy sector while maintaining high environmental integrity standards for carbon units generated under the scheme.

The ministry also expects the regulation to strengthen investor confidence and accelerate the development of green projects and low-carbon technologies.

To support transparent and accountable carbon trading implementation, the ministry has prepared several digital platforms, including AKSELERASI for reporting energy-sector emission mitigation actions, SINERGI for energy conservation monitoring, and APPLE Gatrik for emissions reporting in the electricity subsector.

Read also:  Pertamina Explores Sustainable Aviation Fuel From Urban Waste, Partners With PAL Jaya

These systems will later be integrated with Indonesia’s Carbon Unit Registry System (SRUK) as part of the country’s broader carbon pricing ecosystem.

Eniya said the public consultation marked an important step toward improving cross-sector policy coordination in implementing Indonesia’s carbon market framework.

“In this public consultation forum, we emphasize four key aspects: the design of the offset mechanism, inter-ministerial coordination, and strengthening support for the implementation of this ministerial regulation so that it remains harmonized with broader carbon economic value policies,” she said.

The government expects stronger regulation and stakeholder collaboration to accelerate the implementation of a credible, transparent, and high-integrity carbon market in the energy sector while reinforcing Indonesia’s green investment ecosystem. ***

LATEST STORIES

MORE ARTICLES

Breakthrough Energy, Temasek Extend Southeast Asia Climate Tech Program Through 2030

Ecobiz.asia – Breakthrough Energy, Temasek and Enterprise Singapore have extended their climate technology innovation program in Southeast Asia for another three years, committing to...

Indonesia Sees 3.9-GW Power Potential From Palm Oil Waste

Ecobiz.asia – Indonesia could generate up to 3.9 gigawatts (GW) of electricity from palm oil waste, according to the National Research and Innovation Agency...

AIIB, KfW Coordinate $850 Million in Climate Resilience Financing for Indonesia

Ecobiz.asia – The Asian Infrastructure Investment Bank (AIIB) and Germany’s KfW Development Bank are coordinating up to US$850 million in financing to support Indonesia’s...

Riau Seeks Faster ART-TREES Registration as International Carbon Buyers Await

Ecobiz.asia – Indonesia’s Riau provincial government is urging the central government to accelerate registration of its GREEN for Riau forest carbon program under the...

Beyond the Haze: Why the Singapore-Indonesia Value Chain Demands Real Mutual Accountability

By: Riza Suarga (Chairman Indonesia Carbon Trade Association/IDCTA)  Ecobiz.asia - Singapore’s haze situation has recently been linked by Prime Minister Lawrence Wong to forest and...

TOP STORIES

RSPO Bantah Perkebunan Sawit Jadi Pemicu Utama Karhutla, Sebut Ada Dugaan Sabotase

Ecobiz.asia – Roundtable on Sustainable Palm Oil (RSPO) membantah perkebunan kelapa sawit menjadi pemicu utama kebakaran hutan dan lahan (karhutla) di Indonesia. Organisasi sertifikasi...

Delegasi RI Imbangi Jejak Karbon Perjalanan Menuju COP31 Turkiye Lewat Aksi Tanam Mangrove

Ecobiz.asia – Kementerian Lingkungan Hidup (KLH/BPLH) mengajak delegasi Indonesia yang akan menghadiri Konferensi Iklim PBB atau COP31 di Antalya, Turki, untuk menghitung dan mengimbangi...

Tugas BPGMN Disorot, Pemulihan Gambut Disertai Evaluasi Izin dan Penegakan Hukum

Ecobiz.asia – Pembentukan Badan Pengelola Gambut dan Mangrove Nasional (BPGMN) perlu diikuti penyelesaian konflik lahan, evaluasi perizinan, dan penegakan hukum untuk mengatasi penyebab kebakaran...

Kesalehan Ekologis: Dari Tobat Menuju Aksi Nyata

Oleh: Saiful Latief, M.Si (Pranata Humas Ahli Muda, Direktorat Inventarisasi GRK dan MPV, Deputi Bidang Pengendalian Perubahan Iklim dan TKNEK, Kementerian Lingkungan Hidup/BPLH) Ecobiz.asia -...

Potensi Biomassa Indonesia Capai 83,4 Juta Ton, PLN EPI Perluas Bisnis Bioenergi

Ecobiz.asia – PT PLN Energi Primer Indonesia (PLN EPI) memetakan potensi biomassa nasional mencapai 83,4 juta ton per tahun. Perusahaan kini memperkuat rantai pasok...