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Large European Companies Interested in Buying East Kalimantan Carbon for 30-45 Dollars Per Ton
MMR Portal
Tuesday, 05 September 2023 Post 02:09 PM
Source : https://www.gerbangkaltim.com/perusahaan-besar-eropa-minat-beli-karbon-kaltim-sebesar-30-45-dollar-perton/
A number of large companies from European countries have expressed their request to buy East Kalimantan carbon. In fact, the price offered is 30-45 dollars per to.
This was stated by the Governor of East Kalimantan Irsan Noor after becoming the Kyenote Speech in the Workshop on Implementation of Carbon Economic Value and the Forest and Land-Based Greenhouse Gas Emission Reduction Program, in Balikpapan, East Kalimantan, Tuesday (29/8/2023).
"One of the big industries in Europe is Mercure, which is based in Geneva, I will meet with you on October 4. And actually many companies are interested, even the price is very suitable, not 5 dollars per ton, basically between 30-45 dollars per ton," he said.
He added that in the workshop itself various thoughts would be generated, where the thought model was hoped to be made simple and implementable. This activity is also in accordance with Presidential Decree Number 98 of 2021 which also encourages the implementation of green investment.
"Actually, in East Kalimantan, green investment has been implemented for a long time, it is already underway, only improvements are needed," he explained.
The reason why this workshop was held in East Kalimantan, Isran added, was so that East Kalimantan could maintain the achievements it had achieved. Apart from that, East Kalimantan also helps the government in making the necessary technical and detailed regulations for the Carbon Trade.
The Governor of East Kalimantan, Isran Noor himself, some time ago succeeded in negotiating the sale of 1 million tons of CO2e from the excess emission reductions in East Kalimantan for the 2019-2020 period to the Carbon Fund, an institution under the World Bank.
This agreement was announced after two days of in-depth meetings in Washington DC, United States some time ago.
As is known, East Kalimantan has succeeded in reducing its emissions by 32 million tons of CO2e, exceeding the emission reduction target of 22 million tons of CO2e set by the Forest Carbon Partnership Facility Carbon Fund (FCPF CF) program during the period 2019 to December 2020.
This means there is an excess emission reduction of 10 million tons of CO2e that can be traded.
"From the excess emission reduction, the Carbon Fund agreed to buy one million tons of CO2e at a higher price than the first payment," he said.
With the 23 million tons of CO2e that have reached an agreement, Isran has also partnered with the International Finance Corporation (IFC) to market another 9 million tons of CO2e.
"IFC will help East Kalimantan market the remaining 9 million tonnes of CO2e emission reductions to multinational private parties such as Google, Delta Airlines, Microsoft, IKEA, Shell, Unilever and BP," he said.
There are three trading models that can be implemented, namely through a bilateral trading system, an auction process, and registration on carbon exchanges.
The bilateral trade process can take 2-6 months, while the auction process can be prepared in one month and the transaction lasts only one to three days.
According to Isran, the auction process is safer because the buyer who wins the auction will directly transfer payment to the seller through the auction agent.
"This provides guarantees to sellers and minimizes the risk of default that could occur in bilateral trade," he explained.
Meanwhile, this achievement opens up opportunities for other provinces in Indonesia to follow in East Kalimantan's footsteps in turning emission reductions into revenue opportunities.
A number of large companies from European countries have expressed their request to buy East Kalimantan carbon. In fact, the price offered is 30-45 dollars per to.
This was stated by the Governor of East Kalimantan Irsan Noor after becoming the Kyenote Speech in the Workshop on Implementation of Carbon Economic Value and the Forest and Land-Based Greenhouse Gas Emission Reduction Program, in Balikpapan, East Kalimantan, Tuesday (29/8/2023).
"One of the big industries in Europe is Mercure, which is based in Geneva, I will meet with you on October 4. And actually many companies are interested, even the price is very suitable, not 5 dollars per ton, basically between 30-45 dollars per ton," he said.
He added that in the workshop itself various thoughts would be generated, where the thought model was hoped to be made simple and implementable. This activity is also in accordance with Presidential Decree Number 98 of 2021 which also encourages the implementation of green investment.
"Actually, in East Kalimantan, green investment has been implemented for a long time, it is already underway, only improvements are needed," he explained.
The reason why this workshop was held in East Kalimantan, Isran added, was so that East Kalimantan could maintain the achievements it had achieved. Apart from that, East Kalimantan also helps the government in making the necessary technical and detailed regulations for the Carbon Trade.
The Governor of East Kalimantan, Isran Noor himself, some time ago succeeded in negotiating the sale of 1 million tons of CO2e from the excess emission reductions in East Kalimantan for the 2019-2020 period to the Carbon Fund, an institution under the World Bank.
This agreement was announced after two days of in-depth meetings in Washington DC, United States some time ago.
As is known, East Kalimantan has succeeded in reducing its emissions by 32 million tons of CO2e, exceeding the emission reduction target of 22 million tons of CO2e set by the Forest Carbon Partnership Facility Carbon Fund (FCPF CF) program during the period 2019 to December 2020.
This means there is an excess emission reduction of 10 million tons of CO2e that can be traded.
"From the excess emission reduction, the Carbon Fund agreed to buy one million tons of CO2e at a higher price than the first payment," he said.
With the 23 million tons of CO2e that have reached an agreement, Isran has also partnered with the International Finance Corporation (IFC) to market another 9 million tons of CO2e.
"IFC will help East Kalimantan market the remaining 9 million tonnes of CO2e emission reductions to multinational private parties such as Google, Delta Airlines, Microsoft, IKEA, Shell, Unilever and BP," he said.
There are three trading models that can be implemented, namely through a bilateral trading system, an auction process, and registration on carbon exchanges.
The bilateral trade process can take 2-6 months, while the auction process can be prepared in one month and the transaction lasts only one to three days.
According to Isran, the auction process is safer because the buyer who wins the auction will directly transfer payment to the seller through the auction agent.
"This provides guarantees to sellers and minimizes the risk of default that could occur in bilateral trade," he explained.
Meanwhile, this achievement opens up opportunities for other provinces in Indonesia to follow in East Kalimantan's footsteps in turning emission reductions into revenue opportunities.
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