Norway has agreed to purchase up to 12 million tonnes of emission reductions from Indonesia via a new carbon credit agreement.

Under the terms of the agreement, set to last ten years according to a statement published by the Norwegian government, Norway will purchase verified emissions reductions generated through new renewable energy projects in Indonesia.

Revenue from the sales “makes it possible for Indonesia to build projects that would otherwise not be realised,” the government’s statement adds.

The agreement was signed by the Global Green Growth Institute, acting on behalf of Norway, and Indonesian state-owned utility PLN.

It operates under Article 6 of the Paris Agreement, which allows countries to cooperate on emissions reductions through the transfer of carbon credits between nations.

The deal builds on a climate cooperation agreement signed by Norway and Indonesia in June last year, which established a framework for using carbon-market financing to support floating solar power plants on reservoirs.

Norway’s Minister of Climate and Environment Sigrun Aasland said the new cooperation will help to ensure that more of Indonesia’s electricity comes from solar rather than coal, which currently covers over 70% of the country’s electricity production.

“[The agreement] shows how international cooperation can contribute to both emission cuts and a faster transition to renewable energy,” Aasland added.

The deal arrives as Indonesia begins implementing a large-scale solar programme aiming to deploy 100 GW of solar by 2029. The country surpassed 1 GW of solar capacity in 2025, with total capacity reaching 1.49 GW by the end of the year. 

Earlier this year, the Norwegian government backed a carbon finance procurement facility in Zambia that sees Norway purchase carbon credits generated by renewable energy projects. The project launched with a 300 MW solar tender for projects connected to on-site storage.