Indonesia, Norway strike carbon credit deal at COP31

ملخص مفصل

The agreement, touted as one of the largest transactions to date under Article 6.2 of the Paris Agreement, targets the sale of 12 million tonnes of carbon dioxide equivalent by 2038.

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The agreement, touted as one of the largest transactions to date under Article 6.2 of the Paris Agreement, targets the sale of 12 million tonnes of carbon dioxide equivalent by 2038.

ndonesia and Norway have signed a Mitigation Outcome Purchase Agreement (MOPA), a legally binding commercial contract for the sale of carbon credits from Indonesia, on the sidelines of the 31st United Nations Climate Change Conference (COP31) in Antalya, Turkey.

Under Article 6 of the Paris Agreement, an MOPA typically includes commercial and technical terms, such as the volume, price and delivery schedule of carbon credits.

State-owned utility firm PLN signed the deal on Wednesday with the Global Green Growth Institute (GGGI), an intergovernmental organization established in 2012 with support from the Norwegian Article 6 Climate Action (NACA) Fund.

Under the agreement, Norway will purchase up to 12 million tonnes of carbon dioxide equivalent in emissions reductions generated by solar power projects developed by PLN by 2038. The carbon units are valued at between US$20 and $40 per tonne of carbon dioxide equivalent, making it the largest carbon trade recorded under the United Nations Framework Convention on Climate Change (UNFCCC) Secretariat to date.

The agreement marks Indonesia's first MOPA to operationalize Article 6.2 of the Paris Agreement, which sets out rules for countries to cooperate in reducing emissions through bilateral arrangements, allowing nations with surplus emission reductions like Indonesia to transfer them as credits to countries seeking to meet their climate targets.

The agreement follows the signing of a mutual expression of intent between the two countries at COP30 in Belém, Brazil, last year.

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