Indonesia to keep carbon trade local until greenhouse gas target met JAKARTA, Nov 19 (Reuters) – Indonesia will not allow cross-border carbon trade until it meets its greenhouse gas reduction targets, its finance minister said on Friday, underlining that its domestic carbon price would be among the cheapest in the world.
Southeast Asia’s largest economy will start charging a carbon tax next April, levied against coal-fired power plant operators with carbon emission levels above a government-set limit.
This will be the G20 nation’s first step towards setting up a carbon market by 2025. The carbon tax rate, now at 30,000 rupiah ($2.11) per tonne of CO2 equivalent (CO2e), will eventually match the domestic carbon price once the market can determine pricing.
