Hasang Hydroelectric Power Plant in North Sumatra Province, Indonesia, which is developed and owned by LX International / Courtesy of LX International
LX International, the trading arm of LX Group, said Thursday that the Indonesian government has recognized a hydropower plant it developed under the Paris Agreement, allowing it to trade the facility’s carbon credits independently.
It marks the first time since the Paris Agreement took effect in 2016 that Indonesia has recognized a renewable energy project owned by a Korean company under the global climate accord.
According to LX International, which owns Hasang Hydroelectric Power Plant in North Sumatra Province, the project was recently approved as an official carbon reduction initiative under Article 6.4 of the Paris Agreement.
Article 6.4 establishes a United Nations-supervised carbon crediting mechanism under which a host country certifies emissions reductions achieved by a project and authorizes the transfer of corresponding credits to a buyer.
The Hasang plant has a generation capacity of 41 megawatts and produces carbon-free electricity using falling water. The facility can supply power to approximately 150,000 households annually.
LX International said the approval paves the way for revenue generation through international carbon credit trading. The company plans to coordinate with the U.N. Framework Convention on Climate Change to transfer the credits to Korea, contributing to the country’s nationally determined contribution (NDC) targets for greenhouse gas reduction.
The firm said it will begin preparing a carbon credit portfolio totaling 310,000 metric tons, combining reductions from the Hasang plant and another renewable energy project it operates in Indonesia — a biogas power plant that uses wastewater from a palm oil plantation in West Kalimantan Province.
“This achievement reflects our renewable energy project management capabilities and our expanding global carbon credit business,” an LX International official said. “We expect it to contribute to Korea’s efforts to meet its NDC targets.”
Source: Korea Times News
