Indonesia to deepen carbon trading cooperation with Japan

illuminem summarizes for you the essential news of the day. Read the full piece on Nikkei Asia or enjoy below:

🗞️ Driving the news: Indonesia and Japan are set to sign a mutual recognition agreement (MRA) by the end of September to strengthen cooperation on carbon trading
• Indonesia’s Vice Minister for Environment and Forestry, Alue Dohong, confirmed the deal during a visit to Tokyo, aiming to showcase it at COP29
• The agreement will enhance carbon market mechanisms between the two nations, fostering collaboration on climate action

🔭 The context: Carbon trading enables countries to buy and sell emissions allowances or credits to meet their climate targets
• Indonesia has been expanding its carbon trading efforts, and this partnership with Japan will further integrate their carbon markets and bolster emission reduction initiatives

🌍 Why it matters for the planet: The bilateral agreement will help both nations reduce carbon emissions more efficiently, contributing to global efforts to combat climate change, especially ahead of COP29 where climate partnerships will be key

⏭️ What's next: The finalized MRA will be signed this month and presented at COP29, strengthening international carbon market cooperation
• It sets the stage for broader collaborations in carbon trading across Asia

💬 One quote: "Our target is, by the end of this September, this MRA is going to be signed by both countries," said Alue Dohong, Indonesia’s Vice Minister for Environment and Forestry

📈 One stat: Indonesia's carbon market is projected to generate up to $565 million annually by 2030, as the country expands its carbon trading efforts to meet national emission reduction targets

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