Indonesia explores greener use cases for the blockchain technology
The Indonesia Stock Exchange (IDX) has signed a memorandum of understanding with the Singaporean Metaverse Green Exchange (MVGX) about IDX’s emission trading scheme. In the frameworks of cooperation, MVGX will help IDX build a carbon registry and exchange with blockchain as the infrastructure layer.
Indonesia has joined dozens of countries estimating their environmental accountability with a financial mechanism. Currently, over 40 countries across the globe are compensating for emissions through carbon taxes or emissions trading schemes (ETS).
However, such schemes face a double-counting issue when two entities or countries claim the same climate action. Using blockchain in carbon trading solves the abovementioned problem, providing transparent record-keeping.
Offering SaaS to commercialize carbon credits, MVGX and IDX can strengthen the country’s sustainability commitments.
At the same time, blockchain cannot fully solve the incentive issues around carbon credit offsetting.