Indonesia’s state-owned electricity firm PLN and the Global Green Growth Institute (GGGI) have signed a Mutual Expression of Interest to advance a bilateral carbon trading initiative with Norway under Article 6.2 of the Paris Agreement.
The agreement targets 12 million tonnes of CO₂ reductions from renewable energy projects. It was signed during the Seller Meet Buyer session at the Indonesia Pavilion at COP30 in Belém, witnessed by Indonesia’s Minister of Environment Hanif Faisol Nurofiq and Norway’s Minister of Climate and Environment Andreas Bjelland Eriksen.
The cooperation builds on a memorandum of understanding signed earlier this year during London Climate Week.
Minister Hanif said the new framework is a significant step for both countries.
“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,” he said.
The upcoming Mitigation Outcome Purchase Agreement is expected to be completed by the end of 2025 and is set to enable new renewable energy carbon trading opportunities, including floating solar projects.
Norway’s climate minister said the initiative expands long-standing cooperation.
“We are proud to broaden our partnership with Indonesia to accelerate the energy transition through the implementation of Article 6.2,” Eriksen said.
He added that the Norwegian Global Emission Reduction Initiative manages US$800 million in authorised funding, with a proposal before Parliament to increase it to US$1.5 billion. Norway expects the Indonesia–Norway programme to reduce 12 million tonnes of CO₂e over the next decade and attract private investment well beyond the carbon revenue.
Source: ecobiz.asia
