Ecobiz.asia – Indonesia’s state-owned electricity firm PT PLN (Persero) and the Global Green Growth Institute (GGGI) have signed a Mutual Expression of Interest (MoI) to advance a bilateral carbon trading initiative between Indonesia and Norway under Article 6.2 of the Paris Agreement, targeting 12 million tonnes of carbon dioxide equivalent (tCO₂e) in emission reductions from renewable energy projects.
The MoI was signed by Evy Haryadi, PLN’s Director of Technology, Engineering and Sustainability, and Sang-Hyup Kim, Executive Director of GGGI, which serves as the trustee of the Norwegian Article 6 Climate Action Fund (NACA), Thursday (Nov.13, 2025).
The signing took place during the Seller Meet Buyer session at the Indonesia Pavilion at COP30 UNFCCC in Belém, Brazil, witnessed by Indonesia’s Minister of Environment Hanif Faisol Nurofiq and Norway’s Minister of Climate and Environment Andreas Bjelland Eriksen.
In June 2025, during London Climate Week, the two governments had signed a Memorandum of Understanding (MoU) to cooperate on implementing Article 6 mechanisms under the Paris Agreement.
Minister Hanif praised the progress of the bilateral partnership in finalizing the draft Mitigation Outcome Purchase Agreement (MOPA) and the Generation-Based Incentive (GBI) program.
“This framework marks an important milestone that strengthens Indonesia and Norway’s joint commitment to advancing technology-based carbon trading. It shows Indonesia’s capability to implement not only nature-based but also technology-based carbon schemes,” Hanif said.
He added that the upcoming MOPA, expected to be signed by the end of 2025, would open new opportunities for renewable energy carbon trading, particularly through floating solar power projects.
Norwegian Minister Andreas Bjelland Eriksen said the initiative builds on the two countries’ long-standing climate partnership, expanding from forest-based cooperation to energy transition.
“We are proud to broaden our partnership with Indonesia to accelerate the energy transition through the implementation of Article 6.2,” Eriksen said.
Eriksen explained that the Norwegian Global Emission Reduction Initiative currently manages US$800 million in authorized funding, with a proposal before Parliament to raise it to US$1.5 billion to support emission-reduction projects with partner countries, including Indonesia.
The Indonesia–Norway program is expected to deliver 12 million tonnes of CO₂e reductions valued at hundreds of millions of U.S. dollars over the next decade and could attract private investments up to five to ten times the carbon revenue.
“We hope to conclude the Purchase Agreement before the end of this year. This initiative could pave the way for cooperation in other technologies such as wind, geothermal, and pumped hydro,” Eriksen added. ***
