Saturday, November 14, 2026
SUARAJATIM – Indonesia’s new carbon agreement with Norway puts verified emission reductions at the centre of a financing programme for solar power projects. Signed by state electricity company PT PLN (Persero) and the Global Green Growth Institute (GGGI) at COP31 in Antalya, Türkiye, on November 11, 2026, the agreement opens a route to additional revenue for eligible renewable energy developments.
“We ensure that every emission reduction outcome is measurable, credible and accountable,” said Indonesia’s Environment Minister and Head of the Environmental Protection Agency, Mohammad Jumhur Hidayat.
Under the programme, Norway can purchase up to 12 million tonnes of emission reductions over ten years. The Norwegian government says payments will cover reductions that have been achieved, verified and delivered, with projects required to generate reductions beyond what would otherwise have occurred.
That condition makes the agreement’s implementation as important as its headline volume. Developers must demonstrate actual results before receiving carbon payments, while Indonesia needs systems that can authorise, record and track the outcomes transferred internationally.
The Mitigation Outcome Purchase Agreement, or MOPA, operates under Article 6.2 of the Paris Agreement. GGGI acts as trustee of the Norwegian Article 6 Climate Action Fund.
For project developers, the commercial opportunity lies in supplementing electricity sales with revenue linked to verified emission reductions. This additional income is intended to help eligible projects whose financial returns would otherwise be insufficient to proceed.
Indonesia will implement the arrangement through its Generation-Based Incentive programme. Its initial focus is floating solar power, including projects paired with battery energy storage systems.
According to GGGI, batteries can enable renewable electricity to be delivered during peak demand periods and evening hours. The programme provides additional incentive payments where the standard electricity purchase price is insufficient to make an eligible project financially viable.
Electricity generation and delivery to the grid will be captured through a digital monitoring, reporting and verification system. Independent audits will check the data before carbon payments are issued based on actual performance.
Indonesia is also preparing registry and accounting arrangements to prevent the same emission reductions from being counted twice. These arrangements must remain consistent with national climate commitments and the bilateral cooperation framework.
PLN President Director Suroso Isnandar said international carbon financing offers another instrument for turning the company’s energy transition plans into investments.
Through its 2025–2034 electricity supply business plan, PLN plans to add 69.5 gigawatts of capacity. Suroso said around 76 percent of the planned additions would come from renewables, battery storage and other clean energy sources.
Following the signing, Indonesia, PLN, GGGI and Norway will continue finalising the programme’s technical and operational arrangements. Those rules will determine how eligible projects enter the programme and demonstrate the results needed to earn carbon revenue.
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| Norway’s Minister of Climate and Environment, Sigrun Aasland, said the Indonesia–Norway partnership is one of the world’s largest carbon trading programmes, aiming to reduce emissions by up to 12 million tonnes of CO₂. |
Under the programme, Norway can purchase up to 12 million tonnes of emission reductions over ten years. The Norwegian government says payments will cover reductions that have been achieved, verified and delivered, with projects required to generate reductions beyond what would otherwise have occurred.
That condition makes the agreement’s implementation as important as its headline volume. Developers must demonstrate actual results before receiving carbon payments, while Indonesia needs systems that can authorise, record and track the outcomes transferred internationally.
The Mitigation Outcome Purchase Agreement, or MOPA, operates under Article 6.2 of the Paris Agreement. GGGI acts as trustee of the Norwegian Article 6 Climate Action Fund.
For project developers, the commercial opportunity lies in supplementing electricity sales with revenue linked to verified emission reductions. This additional income is intended to help eligible projects whose financial returns would otherwise be insufficient to proceed.
Indonesia will implement the arrangement through its Generation-Based Incentive programme. Its initial focus is floating solar power, including projects paired with battery energy storage systems.
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| PLN President Director Suroso Isnandar said the MOPA partnership would help turn the company’s energy transition agenda into tangible projects through international carbon financing, opening opportunities for renewable energy development while generating economic value from emission reductions. |
Electricity generation and delivery to the grid will be captured through a digital monitoring, reporting and verification system. Independent audits will check the data before carbon payments are issued based on actual performance.
Indonesia is also preparing registry and accounting arrangements to prevent the same emission reductions from being counted twice. These arrangements must remain consistent with national climate commitments and the bilateral cooperation framework.
PLN President Director Suroso Isnandar said international carbon financing offers another instrument for turning the company’s energy transition plans into investments.
Through its 2025–2034 electricity supply business plan, PLN plans to add 69.5 gigawatts of capacity. Suroso said around 76 percent of the planned additions would come from renewables, battery storage and other clean energy sources.
Following the signing, Indonesia, PLN, GGGI and Norway will continue finalising the programme’s technical and operational arrangements. Those rules will determine how eligible projects enter the programme and demonstrate the results needed to earn carbon revenue.