The urgency to take action on climate change is more pressing than ever. Unfortunately, counter actions on damaging activities move very slowly compared to the rise of non-environmentally friendly activities. Changing the industry's long-existing technology will take time, so it may not be the fastest solution to generate the most impact. In the meantime, we need a more efficient mechanism to reach a low-carbon economy which lead to the carbon market. In 2015, private companies and governments from across the globe committed to becoming climate neutral by 2050 in the Paris Agreement.
Taking into consideration that Indonesia is one of the lungs of the planet, its potential is tremendous in leading the implementation of carbon credit trading. Indonesia has set an unconditional target to reduce emissions by 29% and a conditional target to reduce emissions by 41% with Business as Usual (BaU) by 2030. The mechanism for carbon credit trading through an exchange can meet climate change policy objectives and reduce the costs of achieving these targets.
A carbon exchange can become the enabler for governments, industry players, and individuals across the globe to reach a low-carbon economy through an organized mechanism.
In 2100, it is projected a temperature increase of around 5 °C. If we continue on the path, this would have grave consequences on our lives and future generation. To avoid this, we have to reduce carbon emissions. As one of the world's lungs, Indonesia contributes 75-80% of the world's carbon credits. This means that Indonesia is indirectly responsible for most of the world's potential to produce carbon offsets, and makes Indonesia a potential market in the implementation of carbon credit trading. This carbon trading can contribute up to more than USD150 billion to the Indonesian economy. Organized carbon trading through the exchange will make it easier for Indonesia to achieve the targets that have been set with minimal costs, and maximize its opportunities in the international carbon trading market.