CarbonX, an Indonesian high-impact carbon asset developer, has signed a memorandum of understanding with the world’s first fully digital carbon exchange to develop a carbon marketplace in Indonesia.

The partnership with AirCarbon Exchange (ACX) aims to provide carbon project developers with a domestic carbon market linked to ACX’s international client order book. Also, the carbon marketplace will allow the growing Indonesian carbon market to rapidly scale up.

“The joint venture delivers all aspects of a comprehensive carbon infrastructure where buyers and sellers worldwide and domestically can transact in a transparent and efficient manner,” said CarbonX director Dessi Yuliana.

Indonesia has committed to making a transition to a green economy by 2060 through the net zero emission target, which is embodied in Presidential Regulation Number 98/2021 on the Implementation of Carbon Economic Value.

To achieve the target, all actors need to collaborate and are supported by enabling policies.

Considering data from Bappenas (the National Development Planning Agency), Indonesia will require massive investments of 3.4% to 3.5% of GDP per year to achieve net zero, noted CarbonX commissioner Pandu Sjahrir.

“The carbon marketplace platform scheme created by CarbonX can contribute to assisting investment funding to achieve net zero emission targets. If all of this takes place optimally, Indonesia can produce a massive supply of carbon offsets and contribute to the Nationally Determined Contributions commitment, while also providing social and economic co-benefits,” Pandu said.

By leveraging ACX’s technology, the CarbonX partnership will launch with immediate scale and provide more opportunities for carbon asset producers in Indonesia, according to Singapore-headquartered ACX managing director William Pazos.

“Indonesian buyers and sellers will immediately gain access to an international marketplace with participants from 30 countries,” he said.