PLN and GGGI sign carbon agreement to support Indonesian solar projects
The Indonesia–Norway partnership aims to cut emissions by up to 12 million tonnes of CO₂, according to Norway’s climate minister.
Indonesia’s PT PLN (Persero) and the Global Green Growth Institute (GGGI) signed a Mitigation Outcome Purchase Agreement on 11 November 2026 at COP31 in Antalya, Turkey. The agreement falls under the Indonesia–Norway bilateral partnership and is intended to channel international carbon finance into Indonesian clean-energy projects, particularly solar power.
Norwegian Climate and Environment Minister Sigrun Aasland said the programme targets emissions reductions of up to 12 million tonnes of CO₂. She said Norway would support the construction of solar power plants in Indonesia through the agreement.
Indonesia will introduce a Generation-Based Incentive programme linking incentives to emissions reductions from grid-connected renewable power projects. Its initial focus will be solar plants, including those equipped with Battery Energy Storage System (BESS) facilities. Carbon funding will support projects facing financial viability challenges, including those requiring transmission infrastructure and energy storage.
Indonesian Environment Minister and Environmental Control Agency head Mohammad Jumhur Hidayat said the agreement implements bilateral cooperation under Article 6.2 of the Paris Agreement. He said the government was preparing registry, authorisation, reporting and accounting arrangements to prevent emissions reductions from being counted twice.
PLN president director Suroso Isnandar said the company’s RUPTL 2025–2034 plan provides for 69.5 GW of additional generation capacity, with around 76 per cent coming from renewables, BESS and other clean-energy sources.
Suroso said PLN had secured US$2.94 billion in energy-transition financing from development partners and export credit institutions since COP30. A further potential US$300 million in energy-project financing was nearing financial close, he added.
