Indonesia, Japan sign joint carbon trading agreement

Indonesia and Japan recently signed the Joint Crediting Mechanism (JCM) for carbon trading, enabling both countries to benefit from investments in environmentally friendly projects, said an official on Friday.

“We will benefit from Japan`s investments in Indonesia, particularly in projects aimed at reducing carbon emissions. Meanwhile, Japan can get credit for its efforts to reduce carbon emissions,” explained Deputy of Coordinating Minister for the Economy Rizal Affandi Lukman.

The new mechanism is expected to boost the volume and quality of Japanese investments in Indonesia. 

Earlier, Japan`s Ambassador to Indonesia Yoshinori Katori said Japan is committed to reducing carbon emissions by 25 percent before 2020. He is optimistic that Japan can meet the target by boosting investments in environmentally friendly projects at home and abroad.

“This mechanism is an incentive for Japanese companies to increase investments in low-carbon projects in Indonesia,” he noted, adding that Japan has adequate technologies to support the new investment scheme.

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