Yohana Belinda, Jakarta – Coal-fired power plants will not be mandated to participate in the newly launched carbon exchange, which the government has formed as a way for the country to expedite emission cuts, despite the energy sector being one of the country's major emissions sources.

The country's first carbon exchange saw 459,953 tonnes of carbon dioxide worth over Rp 29 billion traded on Tuesday after its launch, but mostly by banks and state-owned enterprises followed by oil and gas giant Pertamina's subsidiaries, according to the Indonesia Stock Exchange (IDX), which operates the exchange, named IDX Carbon.

IDX president director Iman Rachman told reporters on Tuesday that for the time being banks would be more interested in using the exchange rather than coal companies, citing the financial sector's view of the carbon exchange as a potential carbon reducer for its own companies.

He further said that by participating in the carbon exchange, banks will be able to attract investors who are equally concerned about environmental, social and corporate governance (ESG).

Coal-fired power plants will not be mandated to participate in the newly launched carbon exchange, which the government has formed as a way for the country to expedite emission cuts, despite the energy sector being one of the country's major emissions sources.

The country's first carbon exchange saw 459,953 tonnes of carbon dioxide worth over Rp 29 billion traded on Tuesday after its launch, but mostly by banks and state-owned enterprises followed by oil and gas giant Pertamina's subsidiaries, according to the Indonesia Stock Exchange (IDX), which operates the exchange, named IDX Carbon.

IDX president director Iman Rachman told reporters on Tuesday that for the time being banks would be more interested in using the exchange rather than coal companies, citing the financial sector's view of the carbon exchange as a potential carbon reducer for its own companies.

He further said that by participating in the carbon exchange, banks will be able to attract investors who are equally concerned about environmental, social and corporate governance (ESG).

Source: https://asianews.network/coal-power-plants-under-no-pressure-to-use-new-carbon-exchange