Indonesia Carbon Trading Scheme (ETS)

The Minister of Energy and Mineral Resources of the Republic of Indonesia inaugurated the launch of carbon trading in the electricity generation subsector on Wednesday 22 February 2023, announced in a press release from the Ministry of Energy and Mineral Resources. This launch aims to achieve the Greenhouse Gas emission reduction target in the energy sector in accordance with the enhanced National Contribution (NDC) document. This carbon trading is still in the mandatory stage and is predicted to reduce greenhouse gas emissions by 36 million CO2e in 2030. This carbon trading was first implemented in Indonesia on coal-fired power plant generating units connected to the PT PLN (Persero) electrical energy network with a larger capacity. or equal to 100 MW. The hope is that this policy will gradually encourage carbon trading in other power generation subsectors besides coal PLTUs and not only those connected to the PT PLN (Persero) network.

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