Indonesia Stock Exchange signs MoU with Singapore-based Green Fintech MVGX to explore opportunities to develop carbon markets

by James · October 31, 2022

IDX is preparing a trading system for a carbon exchange i Indonesia
MVGX provides IDX with opportunities to explore its industrial-grade software to establish IDX’s carbon exchange capabilities
Both parties are exploring opportunities for the development of Indonesian carbon trading.

SINGAPORE and JAKARTA, Indonesia, 1 November 2022 /PRNewswire/ — Indonesia Stock Exchange (“IDX”), the country’s national stock exchange and among the fastest growing on the continent, is exploring the possibility of partnering with MetaVerse Green Exchange (“MVGX”), a digital green exchange licensed and regulated by the Monetary Authority of Singapore (MAS), to develop Indonesia’s carbon exchange system.

This development comes amid the Indonesian government’s planning to launch the country’s own quota trading scheme by 2025 to motivate domestic companies in high-emitting industries to reduce their emissions. To date, Indonesia is among 61 countries with established rules for CO2 pricing and has committed to reducing its greenhouse gas emissions by 43 percent by 2030 with international support, either through financing or new technology. Indonesia itself has delivered on its sustainability pledges, having cut 10.37 million tonnes of carbon dioxide from energy plants in 2021 alone – 210.8% of the original target.

Commenting on the partnership, Jeffrey HendrikIDX Director of Business Development, said: “The Indonesian government has recognized the important role that the financial industry can play in strengthening the country’s sustainability commitments. IDX is currently preparing for the possibility of becoming a carbon exchange in Indonesia and started discussions with several parties to deepen our knowledge. We believe that this strategic partnership with MVGX can support us in building a robust carbon exchange infrastructure and ecosystem that will underpin the country’s plan to develop a sustainable financial ecosystem.”

Bo Baiexecutive chairman and co-founder of MVGX, said: “At MVGX, our goal is to build an ecosystem of secure, compliant carbon trading systems around the world to empower and enable companies and authorities to achieve their sustainability goals. Today, carbon markets continue to face challenges around a lack of transparency, standardization and liquidity – we are thrilled to support IDX as they work to meet this critical milestone as part of Indonesia’s climate policy and when they raise the standard for green finance in the region.”

MVGX utilizes blockchain technology that offers a transparent, tamper-proof overview of the performance of all green projects linked to the credits listed on the exchange infrastructure. This will provide buyers and issuers with the utmost assurance of the integrity of the carbon credits listed in IDX’s registry. When used for corporate carbon neutrality verification, these credits will be certified in accordance with internationally recognized gold standards for carbon footprint validation in line with ISO 14064-1:2018 Carbon Footprint Verification and PAS 2060 Verification of carbon neutrality.

Michael Sherenpresident of MVGX, former senior advisor to the Bank of Englandformer co-chair of the G20 Sustainable Finance Study Group, said: “Asia is set to be among the hardest hit by the impact of climate change, and it is estimated that USD 2 trillion in sustainable funding will be needed over the next decade Southeast Asia alone to pave the way for a sustainable transition towards achieving net zero. Home to a third of the world’s rainforests, Indonesia has made significant progress in reducing deforestation, and in working with IDX, we are excited about this opportunity to support the country on its next climate-related milestone as it looks to develop and launch its own carbon trading registry.”

IDX is a self-regulatory organization that aims to be a competitive stock exchange equipped with world-class credibility that holds membership titles with the World Federation of Exchanges and Sustainable Stock Exchanges. As one of the fastest growing exchanges on the continent, IDX has more than 800 listed companies on the exchange and a total of over 4.2 million investors on the exchange.

Irvan Susandy, IDX Director of Trading and Membership, said: “Indonesia has so many potential nature-based solutions. With a fully operational infrastructure for carbon trading in place, companies and authorities will be able to trade carbon credits while identifying high-quality climate projects. This partnership with MVGX will enhance IDX’s capacity and ability to design carbon trading exchanges that Indonesia’s efforts to build a climate-robust future.”

MVGX is a leading FinTech company providing end-to-end Carbon-as-a-Service solutions, supported by its licensed digital asset exchange platform and patent-pending technologies, including its Non-Fungible Digital Twin (NFDT^®) and CNTs^®, its proprietary digital carbon credit. CNT^®s addresses one of the most challenging aspects of the Paris Agreement (COP21) – namely the ability to properly verify and track carbon credits – enabling carbon neutrality at scale and facilitating the global goal of net zero emissions.

MVGX has built a world-class digital exchange platform with best-in-class Nasdaq engines, MVGX proprietary digital assets with a carbon footprint tag and strict compliance processes. MVGX is committed to bridging carbon trading markets from different jurisdictions and bridging illiquid assets in the real economy with wider investor accessibility.

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MVGX Executive Chairman and Co-Founder Bo Bai and MVGX President and Chief Strategy Officer Michael Sheren are all available for interviews

About Indonesia Stock Exchange

IDX is the only exchange in Indonesia with more than 800 listed companies and a total market value of approx 600 billion dollars. IDX is a non-profit organization whose main function is to create a fair, orderly and efficient capital market Indonesia. IDX promotes a sustainable capital market through various initiatives and works closely with all stakeholders to provide transparency and investor protection

About MetaVerse Green Exchange

MetaVerse Green Exchange (“MVGX”) is the first regulated exchange of the metaverse era, with licenses from the Monetary Authority of Singapore (“MAS”) including the recognized market operator (RMO) licence, the capital market services license for trading in securities, collective investment schemes, exchange-traded derivatives, OTC derivatives, the provision of custody services, as well as exempt licenses under the Payment Services Act.

MVGX is committed to bridging carbon trading markets from different jurisdictions and bridging illiquid assets in the real economy with wider investor accessibility. Founded in 2018 and based in SingaporeMVGX has built a world-class digital exchange platform with best-in-class Nasdaq engines, MVGX’s proprietary carbon footprint digital asset ledger and strict compliance processes.

MVGX has two patent-pending technologies, Non-Fungible Digital Twin (NFDT^®) to represent objects in the metaverse, and CNT^® — its proprietary digital carbon credit — to facilitate cross-border trading of voluntary carbon emission reduction credits without triggering national ownership issues (nationally determined contributions).

MVGX – the exchange that creates a sustainable and greener future in the metaverse era.

Visit www.mvgx.com or contact [email protected] for more information about MVGX.

Media connector (MVGX)

[email protected]
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SOURCE MetaVerse Green Exchange