Norway to Buy Carbon Offsets from Indonesian Power Projects

CARBON TRADE - JAKARTA, Nov 12 - Norway has agreed to buy up to 12 million metric tons of carbon credits generated by solar power projects developed by Indonesia's state-owned utility Perusahaan Listrik Negara, the Indonesian government on Thursday.

The carbon credits are valued at between $20 to $40 per ton of CO2e, the government said in a statement.

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The deal was signed on the sidelines of the United Nations Framework Convention on Climate Change meeting (COP31) in Turkey.

The agreement is expected to provide Indonesia with a sustainable financing mechanism for its energy transition under Article 6.2 of the Paris Agreement, Jakarta said.

This refers to the framework allowing countries to cooperate in reducing emissions through bilateral arrangements.

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It enables nations with surplus emissions reductions to transfer them in the form of credits to countries seeking to meet their own climate targets.