Indonesia leads in promoting carbon market at CGCM London event

to combat climate change,” stated Minister Hanif during the event held at the London Climate Action Week. The CGCM, a collaborative effort by Kenya, Singapore, and the United Kingdom, aims to establish a credible and high-integrity voluntary carbon market.

Minister Hanif emphasized Indonesia’s commitment to implementing both domestic and international carbon trading systems that align with the TACCC principles—Transparent, Accurate, Consistent, Complete, and Comparable. This commitment reflects Indonesia’s dedication to utilizing carbon trading as a means to drive economic growth domestically while also playing a crucial role in global climate change mitigation efforts.

Indonesia’s active participation in the CGCM launch highlighted its enthusiasm towards contributing to the global carbon market. Minister Hanif underlined the importance of viewing carbon markets not just as economic tools but as a moral obligation to safeguard the environment, enhance national sovereignty, and promote public welfare.

The presence of high-level government officials, business leaders, and members of the international community at the launch underscored the significance of Indonesia’s involvement in shaping the future of carbon markets. Indonesia, alongside Panama and Peru, delivered a government keynote address, showcasing its progress and policy stance on establishing a national carbon economic value system.

Minister Hanif elaborated on Indonesia’s efforts to enhance the integrity of its international carbon trading by signing Mutual Recognition Agreements with various international carbon credit systems. These agreements play a crucial role in ensuring a high-integrity carbon trading system that aligns with Indonesia’s Nationally Determined Contributions (NDCs).

Welcoming coalitions like the CGCM, Minister Hanif expressed Indonesia’s readiness to engage in comprehensive collaborations, both bilaterally and multilaterally, to support the goals of the Paris Agreement. Acknowledging the importance of collective action, he stressed the need to strengthen national capacities and ensure meaningful contributions to climate action.

The Minister emphasized the significant role that the Voluntary Carbon Market (VCM) can play in bridging capacity gaps among countries and stakeholders. By collaborating with VCMs, governments can enhance the implementation of climate actions at the grassroots level, paving the way for a more integrated carbon market system that aligns with the objectives of the Paris Agreement.

Indonesia’s commitment to transparency in international carbon trading was highlighted during the event, showcasing the country’s dedication to upholding global standards and integrity in climate action. Minister Hanif’s participation at the CGCM London launch reiterated Indonesia’s position as a key player in advancing carbon market initiatives on a global scale.