Officially, OJK Issues Circular on the Procedures for Organizing Carbon Trading through Carbon Exchanges

The Financial Services Authority (OJK) officially issued Circular Letter of the Financial Services Authority or SEOJK Number 12/SEOJK.04/2023 concerning the procedures for organizing carbon trading through carbon exchanges.

Aman Santosa as Head of the Department of Literacy, Financial Inclusion and Communication of OJK revealed that the SEOJK was implemented to follow up on the provisions of the procedures for organizing carbon trading on the carbon exchange.

"The issuance of this SEOJK also discusses operational provisions and internal controls of carbon exchange organizers, as well as provisions regarding the requirements and procedures for licensing carbon exchange organizers in POJK 14/2023," he said on Thursday (7/9/2023).

Aman explained that in this SEOJK there are at least 10 important points, including:

1. Scope of carbon units traded on the carbon exchange organizer, regulates the types of carbon units that can be traded on the carbon exchange.

2. Capitalization of the carbon exchange organizer, regulating the requirements and details of the proof of capital document of the carbon exchange organizer.

3. Requirements for shareholders of the carbon exchange organizer, namely the integrity and financial feasibility of shareholders.

4. Requirements for members of the board of directors and members of the board of commissioners of the carbon exchange organizer including the competence and reputation of members of the board of directors and members of the board of commissioners.

5. Assessment of the ability and compliance of shareholders, members of the board of directors, and members of the board of commissioners, regulates OJKs authority to conduct an assessment of the ability and appropriateness of prospective shareholders, prospective members of the board of directors, and prospective members of the board of commissioners of the carbon exchange organizer.

6. Operational and internal control, regulates the obligation of carbon exchange organizers to provide systems or facilities in order to support the trading and monitoring of carbon units as well as internal control of carbon exchange organizers.

7. Procedures for applying for licenses for carbon exchange organizers, including mechanisms and document requirements for applying for a business license for carbon exchange organizers.

8. Regulation and articles of association of the carbon exchange organizer, including the requirements and mechanism for submitting and approving the application for approval of the regulation and articles of association of the carbon exchange organizer and any amendments.

9. Annual work plan and budget of the carbon exchange organizer, regulating the realization, amendment, and submission of the annual work plan and budget of the carbon exchange organizer.

10. Report of the carbon exchange organizer, regulating the type of report, and submission time.

The existence of the rules of procedure for carbon trading through the carbon exchange is then expected to be the legal basis as well as guidance or guidelines for all parties, especially for those who will apply for a license as a carbon exchange organizer, including document requirements, application procedures, and operational business activities of carbon exchange organizers.