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Jumat, Desember 10, 2021

OJK and IDX Preparing Legal Frameworks for Carbon Trading

Energy Environment

The Head of Financial Services Authority (Otoritas Jasa Keuangan "OJK") is currently working on the regulatory changes that will be required in order to implement the government’s plan to develop a regulatory framework for carbon trading, and will be specifically focusing on the various changes that will apply within the capital-market sector.
Moreover, the President Director of the Indonesia Stock Exchange ("IDX"), Inarno Djajadi, issued a recent statement affirming that carbon trading was just one of the initiatives that will be introduced in order to reduce the country’s overall greenhouse gas (“GHG”) emissions. This new program will be directed by the IDX, which has agreed to comply with the government’s directives so that Indonesia will be able to achieve the targets set out in the Nationally Determined Contribution ("NDC") document.
In early November 2021, President Joko Widodo signed Regulation No. 98 of 2021 on the Implementation of Carbon Economic Value to Achieve NDC Targets and Control over GHG Emissions in Relation to National Development ("Regulation 98/2021"). It is hoped that this new regularly framework will help Indonesia to achieve its GHG emissions reduction target, as stated in the NDC document which specifically addresses control over climate change. In the updated NDC document that was submitted to the UNFCCC in July 2021, Indonesia committed itself to a 41% reduction in its GHG emissions by 2030 with international support. In addition, Indonesia has also committed itself to achieving net-zero emissions by 2060 or sooner, as specifically addressed in the Long-Term Strategies for Low Carbon and Climate Resilience 2050 ("LTS-LCCR 2050") document. Based on LTS-LCCR 2050 calculations, Indonesia should be able to reduce its emissions by up to 50% from the country’s business-as-usual baseline, particularly if international support is proffered.
Regulation 98/2021 is expected to catalyze a greater amount of green financing and investments within Indonesia, which should ultimately have an impact on reducing the country’s GHG emissions. Regulation 98/2021 sets out several carbon-trading mechanisms, specifically trade between two business actors through a cap-and-trade scheme, the offsetting of emissions through a carbon offsetting scheme, results-based payments and levies on carbon, as well as a combination of existing mechanisms.
Under the new mechanisms, if carbon trading is undertaken between two domestic entities, then calculations that address the overall GHG emissions reductions achieved will still be taken into account as a part of Indonesia’s contribution. Moreover, the introduction of carbon-market regulations opens up opportunities for Indonesia to receive wider funding in relation to climate-change control. _(ANT)

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The Head of Financial Services Authority (Otoritas Jasa Keuangan "OJK") is currently working on the regulatory changes that will be required in order to implement the government’s plan to develop a regulatory framework for carbon trading, and will be specifically focusing on the various changes that will apply within the capital-market sector.
Moreover, the President Director of the Indonesia Stock Exchange ("IDX"), Inarno Djajadi, issued a recent statement affirming that carbon trading was just one of the initiatives that will be introduced in order to reduce the country’s overall greenhouse gas (“GHG”) emissions. This new program will be directed by the IDX, which has agreed to comply with the government’s directives so that Indonesia will be able to achieve the targets set out in the Nationally Determined Contribution ("NDC") document.
In early November 2021, President Joko Widodo signed Regulation No. 98 of 2021 on the Implementation of Carbon Economic Value to Achieve NDC Targets and Control over GHG Emissions in Relation to National Development ("Regulation 98/2021"). It is hoped that this new regularly framework will help Indonesia to achieve its GHG emissions reduction target, as stated in the NDC document which specifically addresses control over climate change. In the updated NDC document that was submitted to the UNFCCC in July 2021, Indonesia committed itself to a 41% reduction in its GHG emissions by 2030 with international support. In addition, Indonesia has also committed itself to achieving net-zero emissions by 2060 or sooner, as specifically addressed in the Long-Term Strategies for Low Carbon and Climate Resilience 2050 ("LTS-LCCR 2050") document. Based on LTS-LCCR 2050 calculations, Indonesia should be able to reduce its emissions by up to 50% from the country’s business-as-usual baseline, particularly if international support is proffered.
Regulation 98/2021 is expected to catalyze a greater amount of green financing and investments within Indonesia, which should ultimately have an impact on reducing the country’s GHG emissions. Regulation 98/2021 sets out several carbon-trading mechanisms, specifically trade between two business actors through a cap-and-trade scheme, the offsetting of emissions through a carbon offsetting scheme, results-based payments and levies on carbon, as well as a combination of existing mechanisms.
Under the new mechanisms, if carbon trading is undertaken between two domestic entities, then calculations that address the overall GHG emissions reductions achieved will still be taken into account as a part of Indonesia’s contribution. Moreover, the introduction of carbon-market regulations opens up opportunities for Indonesia to receive wider funding in relation to climate-change control. _(ANT)

......

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Precedent Hukumonline
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Semua Fitur Paket Standard
Terjemahan Peraturan
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Premium Stories
Monthly Law Review (MLR)
Indonesian Law Digest (ILD)

STANDARD

Rp 2.500.000

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Indonesian Legal Brief (ILB)
Daily Updates
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