PGE to market carbon credits as Indonesia advances carbon trading
Thursday, March 12 2026 - 07:39 AM WIB
PT Pertamina Geothermal Energy Tbk (IDX: PGEO), or better known as PGE, said it is expanding its geothermal-based carbon projects and preparing to market carbon credits as Indonesia advances its carbon trading framework and climate targets.
The company said its carbon project portfolio, developed from several geothermal operating areas, has an estimated emissions reduction potential of about 1.5 million tonnes of carbon dioxide equivalent (CO₂e) per year.
The projects are located in geothermal working areas including Kamojang, Karaha, Ulubelu, Lahendong and Lumut Balai, and have been developed under international and domestic standards such as the Clean Development Mechanism (CDM), Gold Standard and Indonesia’s National Registry System (SRN), the company said in a statement.
Indonesia is promoting the implementation of Carbon Economic Value (Nilai Ekonomi Karbon/NEK) as part of efforts to reduce greenhouse gas emissions and meet its Nationally Determined Contribution targets under the Paris Agreement, while aiming to reach net zero emissions by 2060.
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PGE said it is working to transition its carbon project portfolio to the carbon market mechanism under Article 6.4 of the Paris Agreement.
The company is coordinating with the environment ministry and climate advisory firm South Pole Group to complete the transition process, including submitting Host Country Approval to the United Nations Framework Convention on Climate Change in March 2026, a step required for international commercialization of carbon credits.
PGE and South Pole have also signed a marketing and sales optimization agreement covering carbon credits generated from the Ulubelu and Karaha geothermal projects.
Under the arrangement, PGE expects to commercialize at least 110,000 tonnes of CO₂ equivalent carbon credits in 2026.
The company said the move would strengthen its readiness to participate in cross-border carbon trading while supporting Indonesia’s climate commitments.
Editing by Reiner Simanjuntak