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Carbon in 2025: Challenges and Opportunities in the Global Carbon Issue

  • Writer: Peterson Solutions Indonesia
    Peterson Solutions Indonesia
  • Mar 3
  • 4 min read

isu karbon di 2025

Carbon Issues in 2025

As we approach 2025, the issue of carbon emissions has become a central focus in the global agenda. The undeniable impacts of climate change, combined with international pressure and national commitments to achieve net-zero emissions, have made carbon reduction a critical priority. This article explores the latest developments in carbon-related policies, the challenges faced, and the opportunities available to create a more sustainable future. Additionally, it highlights Indonesia's role, particularly through the launch of international carbon trading via the Indonesia Carbon Exchange (IDXCarbon), as a significant step in reducing carbon emissions.


1. Recent Developments in Global Carbon Policies

By 2025, many countries are expected to have implemented stricter carbon policies. Key developments include:

  • Implementation of the EU’s Carbon Border Adjustment Mechanism (CBAM): Starting in 2026, the EU will impose carbon taxes on imports of goods with high carbon footprints. This move pressures exporting countries, including Indonesia, to accelerate their transition to clean energy.

  • Net-Zero Commitments: Over 130 countries have committed to achieving net-zero emissions by mid-century. The year 2025 serves as a crucial milestone for evaluating their progress.

  • COP30 Climate Summit: The 2025 global climate conference is expected to be a pivotal moment for assessing nations' commitments to reducing emissions.


2. Challenges in Reducing Carbon Emissions Despite significant progress, several challenges remain:

  • Uneven Energy Transition: Developing countries still rely heavily on fossil fuels due to technological and financial limitations.

  • Deforestation and Land Degradation: Despite reforestation efforts, deforestation rates remain high in some regions, particularly for agricultural and plantation expansion.

  • Dependence on Carbon-Intensive Industries: Sectors such as transportation, manufacturing, and mining continue to be major contributors to carbon emissions.


3. Opportunities and Innovations in Carbon Management

Amid these challenges, there are numerous opportunities and innovations:

  • Carbon Capture and Storage (CCS) Technology: Advances in CCS technology offer promising solutions for reducing emissions from heavy industries.

  • Carbon Markets and Trading: Carbon trading mechanisms are maturing, providing economic incentives for companies to cut emissions.

  • Renewable Energy: The declining costs of solar and wind energy make them increasingly competitive with fossil fuels.

  • Green Finance: Investments in sustainable projects are growing, supported by financial instruments such as green bonds and sustainability-linked loans.


4. Indonesia’s Role in the Carbon Issue

As home to one of the world’s largest tropical forests, Indonesia plays a crucial role in global carbon reduction efforts. Key initiatives include:

  • Implementation of Carbon Economic Value (NEK): This policy promotes emission reductions through market-based mechanisms.

  • Peatland and Mangrove Restoration: Programs like the Peatland and Mangrove Restoration Agency (BRGM) aim to restore ecosystems that serve as carbon sinks.

  • Transition to Clean Energy: The government targets a 23% renewable energy mix by 2025, though infrastructure and funding challenges persist.


5. IDX Carbon: Achievements and Progress in 2025

In 2025, Indonesia took a significant step forward by launching international carbon trading through the Indonesia Carbon Exchange (IDXCarbon). On January 20, 2025, Indonesia officially began international carbon trading via IDXCarbon, aligning with its Nationally Determined Contribution (NDC) targets and implementing Articles 6.2 and 6.4 of the Paris Agreement.


a. Growing Trading Volume

As of January 17, 2025, the total trading volume on IDXCarbon reached 1,131,000 tons of CO₂ equivalent (tCO₂e), with a transaction value of Rp56.86 billion. This growth reflects increasing market enthusiasm for carbon trading mechanisms.


b. Registered Carbon Projects

In early 2025, IDXCarbon added three new Certified Emission Reduction (CER) projects, including the PLTGU Priok Block 4 project (verified emission reduction of 763,653 tCO₂e, vintage year 2021), the PLTGU Grati Block 2 project (407,390 tCO₂e, vintage year 2021), and the PLN NP UP Muara Tawar power plant conversion project (30,000 tCO₂e, vintage year 2023).


c. Challenges in Regulation and Taxation

Despite its progress, IDXCarbon faces challenges, particularly in regulatory harmonization and taxation. Ratna Juwita Sari, a member of the Indonesian House of Representatives’ Commission XII, emphasized the need for legal certainty and improved tax regulations to support the sector’s growth. Additionally, the acceleration of renewable energy legislation is expected to provide a stronger legal foundation for the carbon trading and renewable energy sectors.


d. Implementation of Carbon Tax

The Indonesian government has also introduced a carbon tax as part of its efforts to reduce emissions and promote renewable energy. The tax applies to taxpayers who purchase carbon-containing goods or engage in activities that produce carbon emissions. The carbon tax rate is set at a minimum of Rp30 per kilogram of CO₂ equivalent (CO₂e). By 2025, the government plans to fully implement the carbon tax and expand its coverage across more sectors.


e. Challenges in the Mining Sector

Carbon emissions remain a significant challenge in the mining industry. The Indonesian Mining Services Association (Aspindo) has urged the sector to intensify efforts to reduce emissions and achieve sustainability targets.


Conclusion

As 2025 approaches, the global carbon issue remains at the forefront of efforts to combat climate change. While significant challenges persist, there are ample opportunities for innovation and collaboration. Indonesia, as part of the global community, must strengthen its commitments and actions to contribute to carbon reduction. The launch of IDXCarbon and the implementation of a carbon tax demonstrate the country’s proactive approach to leveraging market mechanisms and fiscal policies for a low-carbon economy. With concrete steps and multi-stakeholder collaboration, a greener and more sustainable future is within reach.


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