Indonesia launched its first carbon exchange as its pledges to reach carbon neutrality in its power sector by 2050.
The exchange will help reduce emissions towards reaching the country’s climate goals by the 2050 deadline.
President Joko Widodo said that the emissions trading market would help Indonesia reach its target climate pledges agreed under the 2015 Paris Agreement to help prevent global warming past 1.5 degrees Celsius.
“Concrete steps are needed to address this, and the carbon exchange that we launch today can be a concrete step,” he said.
The Indonesian leader added that the exchange could create a new sustainable economy, estimating it had the potential to be worth at least 3,000 trillion rupiah ($194 billion).
The trading will take place on the Indonesia Stock Exchange and it will be overseen by the Financial Services Authority.
At least 13 transactions took place at the start of Tuesday’s trade, with more than the equivalent of 459,000 tons of carbon dioxide traded, according to a board at the stock exchange.
Indonesia is the biggest coal exporter in the world.
