Renewables
Norway and Indonesia finalize ten-year carbon credit pact
Norway has contracted to acquire up to 12 million tonnes of verified emission reductions from Indonesia under a ten-year bilateral framework.
Key points
- Norway commits to buying up to 12 million tonnes of emission reductions over ten years.
- The agreement operates under Article 6 of the Paris Agreement to support new renewables.
- Indonesian state utility PLN and the Global Green Growth Institute signed the pact.
What happened
According to reporting by pv magazine, the Government of Norway has entered a decade-long accord with Indonesia to acquire up to 12 million tonnes of verified emission reductions. The arrangement is designed to unlock funding for renewable energy infrastructure that might otherwise struggle to secure commercial backing.
Signatories to the pact include the state-owned utility PLN alongside the Global Green Growth Institute, which acted as an intermediary for the Norwegian administration. The framework functions under Article 6 of the Paris Agreement, enabling cross-border cooperation on emissions reductions via international carbon credit transfers.
This bilateral arrangement expands upon previous climate collaboration established between Oslo and Jakarta in June of the prior year, which initially laid groundwork for carbon-market financing directed at floating solar installations on reservoirs.
Implementation and wider context
Sigrun Aasland, Norway's Minister of Climate and Environment, noted that the initiative will assist in shifting electricity generation away from coal, which currently accounts for more than 70 percent of Indonesia's power production, according to the government statement cited by pv magazine.
The carbon credit arrangement coincides with broader deployment targets in Indonesia, where authorities have initiated a large-scale solar campaign aiming for 100 GW of capacity by 2029. Official figures indicate that national solar capacity reached 1.49 GW by the conclusion of 2025.
Similar recent activities by Norway include backing a procurement facility in Zambia earlier in the year to acquire carbon credits originating from solar assets equipped with on-site storage.
Why it matters
For energy investors and policymakers across emerging markets, bilateral carbon credit agreements under Article 6 represent an increasingly vital mechanism for mobilising capital toward clean energy infrastructure. As nations seek innovative financing structures to meet stringent decarbonisation targets, leveraging international compliance markets can bridge funding gaps for utility-scale solar and other renewable technologies. For energy-exporting economies in Africa and beyond, establishing transparent frameworks for carbon credit transfers offers a pathway to monetise emission reductions while accelerating domestic energy transitions away from carbon-intensive generation assets.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Renewables are the fastest-growing part of the world’s energy system. The COP28 goal is to triple capacity by 2030, and solar mini-grids are the fastest route to power for millions of people without electricity.
15.5% of electricity in Indonesia was renewable in 2021Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
