Indonesia is ready to launch a carbon exchange in September, according to the Straits Times, with power generation companies the first to trade on it.

Indonesia’s BEI stock exchange will operate the carbon exchange, which will be supervised by its financial regulator, the Financial Services Authority, and the Environment and Forestry Ministry.

Initially, power producers that operate coal power plants and have a level of emissions lower than what is set by the government can sell emission allowances to less efficient peers.

Indonesia, the world’s eighth-largest greenhouse emitter, in February launched the first phase of mandatory carbon trading for 100 coal-fired units owned by 40 or so companies and supplying electricity to the state utility PLN. More than half of the power generation in the country is sourced from coal.