Jakarta (ANTARA) - Indonesia and Japan's mutual recognition arrangement (MRA) on bilateral carbon trading is a tangible form of implementing the Paris Agreement to achieve climate targets, the Environment Ministry has said.
Deputy for climate change control and carbon economic value governance at the ministry, Laksmi Dhewanthi, delivered the remarks during a discussion at the 29th UN Climate Change Conference of the Parties (COP29) in Baku, Azerbaijan, on Thursday.
During the discussion, she explained that Indonesia has made a series of efforts to implement carbon trading mechanisms.
The government has issued several regulations regarding carbon economic value, she expounded.
One of those regulations is Presidential Regulation Number 98 of 2021 on the implementation of carbon pricing to achieve the nationally determined contribution target and control over greenhouse gas emissions in national development.
This regulation, she said, provides a legal foundation for establishing international cooperation related to carbon trading and to pursue the mandate of Article 6.2 of the Paris Agreement for cooperation between countries and Article 6.4 on carbon trading.
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"Indonesia has shown a good example. With the Japanese government, we have launched a mutual recognition agreement for both Indonesia and Japan schemes," she added.
Therefore, the MRA between Indonesia and Japan needs to be seen as an example of the real implementation of the Paris Agreement, she said. Earlier, Indonesian special envoy for COP 29 Hashim S. Djojohadikusumo said that Indonesia is ready to implement the MRA on carbon trading with Japan.
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The agreement took effect on October 28, 2024, and is based on the principle of recognizing the carbon credit systems of both countries in bilateral carbon trading.
The MRA agreement is also the world's first model of bilateral cooperation between countries within the Paris Agreement framework.
