Indonesia and the United Kingdom have reinforced their dedication to climate action by signing an agreement to establish a carbon price in Indonesia. This builds upon a previous memorandum of understanding signed at the G20 Summit in Bali the previous year. The UK has pledged £2.7 million to support Indonesia’s carbon pricing policy, marking a significant milestone in the global fight against climate change.
The British Ambassador to Indonesia, Owen Jenkins, praised Indonesia’s potential to become a ‘carbon superpower’ and highlighted the importance of international collaboration in addressing climate change.
Indonesia has recently updated its carbon emissions reduction targets, aiming to cut emissions by 31.89% by 2030, with the possibility of elevating it to 43.2% with international assistance. The ultimate goal is to achieve net-zero emissions by 2060 or earlier, showcasing Indonesia’s commitment to environmental sustainability.
The UK Government has committed £2.7 million through its “Partnering for Accelerated Climate Transitions” (UK PACT) programme. The aim is to bring international experts, including those from the UK, to work with Indonesia on developing and implementing a domestic carbon pricing policy, supporting the country in meeting its Nationally Determined Contributions (NDC) commitments.
The joint efforts of the British and Indonesian governments in carbon pricing represent a significant step in the global transition towards a green economy. It underscores the importance of international cooperation, policy reform, and financial support in combating climate change. With the potential of Indonesia’s carbon market and the upcoming launch of the carbon exchange, the nation’s prospects for green economic growth are promising.