The Indonesia-Norway carbon deal is gaining global attention as both countries push forward major carbon-trading initiatives at COP30. The government, through PT PLN (Persero), signed the Mutual Expression of Intent for the Generation-Based Incentive Programme with the Global Green Growth Institute (GGGI). The agreement aims to support Indonesia’s commitment to reducing emissions, developing renewable energy, and shifting away from coal while securing up to 12 million tons of CO2e reductions.
Indonesia Norway Carbon Deal Marks Major Climate Milestone
Indonesia and Norway strengthened their climate partnership through a landmark agreement under Article 6 of the Paris Agreement. The deal introduces a bilateral framework designed to scale international carbon trading and boost renewable energy efforts across Indonesia. Officials signed the cooperation document at the Indonesia Pavilion in Belém, Brazil, during the 30th Conference of the Parties.
During the event, Indonesia’s Minister of Environment, Hanif Faisol Nurofiq, emphasized the significance of this step. “Today, we have reached an important milestone that will determine the next achievements in Indonesia–Norway cooperation, and it shows the world that we are capable of becoming leaders in implementing carbon trading under the Article 6 mechanism of the Paris Agreement,” he said. The agreement positions Indonesia at the forefront of global climate initiatives as it expands beyond nature-based solutions into technology-driven carbon trading.
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GBI Scheme Supports Indonesia’s Emission Targets
The Generation-Based Incentive (GBI) scheme serves as a key component of the new cooperation. It supports Indonesia’s Nationally Determined Contributions by encouraging the transition toward renewable energy and lowering dependence on coal. The framework will guide the development of the Mitigation Outcome Purchase Agreement, which will enable the purchase of Internationally Transferred Mitigation Options.
The GBI scheme also highlights Indonesia’s broader strategy to align energy expansion with climate goals. It addresses the need for stronger policy tools that accelerate clean energy deployment while delivering measurable carbon reductions. Through this structure, the government aims to unlock investment opportunities that help strengthen the nation’s position in the global carbon market.
Norway Backs Indonesia’s Leadership in Article 6 Carbon Trading
Norway expressed strong support for Indonesia’s leadership role in global carbon trading. Andreas Bjelland Eriksen, Norway’s Minister of Climate and Environment, praised the initiative and highlighted its long-term potential. “For Norway, the successful implementation of this programme is only the beginning. We believe this joint step will pave the way for broader collaboration in technology and green investment,” he said.
Eriksen also shared Norway’s confidence in Indonesia’s ability to manage high-integrity carbon trading at scale. He added, “We believe this first programme can demonstrate that Indonesia is ready for initiatives like this and has the capacity to scale them up. This will send a strong signal to the private sector and other governments interested in increasing their involvement under the Article 6 framework of the Paris Agreement.”
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PLN Pushes Green Investment Through Global Collaboration
PLN strengthened its commitment to renewable energy through this international partnership. Evy Haryadi, PLN’s Director of Technology, Engineering, and Sustainability, noted the importance of unified global action. “Climate change is a global challenge that requires cooperation and collective solutions from around the world. This agreement is a concrete step by PLN and the Indonesian government to address the increasingly evident climate crisis,” she said.
She also highlighted PLN’s pioneering role in advancing carbon financing for renewable energy. According to her, “Through this partnership with GGGI, representing Norway, PLN is not only preparing the world’s first bilateral carbon-trading transaction but also laying the foundation for the first and largest carbon-financing scheme for renewable-energy projects in Indonesia.” The initiative reflects Indonesia’s push to expand clean energy through strong cross-border collaboration.
A New Era for Indonesia’s Carbon Market Ambitions
Indonesia now moves toward a new chapter in its climate agenda as the Indonesia-Norway Carbon Deal sets a foundation for large-scale carbon trading and renewable-energy investments. The agreement strengthens Indonesia’s global leadership and signals a long-term commitment to building a cleaner, more sustainable energy future.
Source: tvonenews.com, swa.co.id
Image: Courtesy of PLN
