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LX International Opens Path to Monetizing Carbon Credits in Indonesia
- 02/12/2026
- View 261
- Hasang hydropower project becomes first Indonesian project approved for international transfer of emission reductions by the Indonesian government
- Plans to pursue sales in domestic and global carbon markets following UN approval and subsequent procedures
- Establishing a carbon credit portfolio in Indonesia totaling 310,000 tons annually
LX International has secured the practical conditions necessary to transfer or sell carbon emission reductions generated in Indonesia.
The company announced on the 12th that its Hasang hydropower project in Indonesia received official approval last month from the Indonesian Ministry of Environment as a carbon reduction project under Article 6.4 of the Paris Agreement. This marks the first time Indonesia has formally approved a domestic project under the Paris Agreement mechanism since its entry into force in 2021.
The Paris Agreement mechanism is a new international carbon reduction framework designed to replace the Kyoto Protocol’s Clean Development Mechanism (CDM). Led by the United Nations (UN), it enables the international transfer and utilization of greenhouse gas emission reductions between countries.
With this approval, LX International has opened a pathway to monetize the carbon credits secured in Indonesia. Following UN approval and other subsequent procedures, the company plans to explore various utilization options, including conversion into domestic credits or sale in global carbon markets.
Building on this milestone, LX International plans to establish a carbon credit portfolio in Indonesia totaling approximately 310,000 tons annually through its renewable energy generation projects. This includes 210,000 tons from the Hasang hydropower project and 100,000 tons from a palm plantation-based biogas power generation project.
The Hasang hydropower plant, located in North Sumatra, Indonesia, has an installed capacity of 41 megawatts (MW). By utilizing the natural drop in water elevation, it generates carbon-free electricity and supplies power to local communities. The plant produces enough electricity to serve approximately 150,000 households in Indonesia for one year.
LX International is also preparing to transition the emission reductions associated with its biogas power generation project to the Paris Agreement mechanism. The biogas plant, operating at a palm plantation in West Kalimantan, captures biogas generated during the treatment of plantation wastewater and converts it into electricity as part of a waste-to-energy(WtE) project initiative.
An LX International official stated, “This approval represents a meaningful achievement of our new growth initiatives, combining our capabilities in operating renewable energy assets with our carbon credit business.” The official added, “It is particularly significant in that it establishes a foundation for monetizing carbon credits secured overseas by linking them to domestic and global carbon markets.”
He further noted, “The project is also meaningful in that it contributes to achieving national greenhouse gas reduction targets (NDCs) through international mitigation initiatives.” (End)
Photo: Hasang Hydropower Plant in Indonesia
