Upgrade your membership plan for the full website experience.
View Membership Plans
March 14, 2023

Indonesia launches emissions trading scheme for coal power plants

Authored by
placeholder
placeholder
March 14, 2023

The Indonesian Ministry of Energy and Mineral Resources (MEMR) recently announced the launch of the first phase of a mandatory carbon trading emissions trading system (ETS) for coal power plants. The first phase (2023-2024) covers 99 power plants that are directly connected to power grids owned by state utility company Perusahaan Listrik Negara (PLN) and have a capacity of at least 100 MW. The emissions quota for power plants is currently set at 20 million tonnes of CO2. Under the carbon trading mechanism, power plants with above-quota emissions can buy carbon credits from plants with below-quota emissions or carbon credits from renewable power plants. The price of carbon credits will be set by a market-based mechanism, with an estimated value between $2 to $18 per tonne.  

The government plans to expand the national ETS to include oil and gas power plants and coal plants not connected to PLN’s grid during the second (2025-2027) and third (2028-2030) phases. The ETS will enable Indonesia to decrease carbon emissions by an estimated 36 million tonnes by 2030, advancing the country’s goal of reaching net zero emissions by 2060. By 2030, Indonesia seeks to reduce carbon emissions by 31.89 percent independently or 43.2 percent with international support.

Join the Council to continue reading this article
Enhance your business impact in Southeast Asia: Become a member of the US-ASEAN Business Council and tap into a network of possibilities.
Free Related Articles

Membership Plans

Corporate Council

Corporate membership provides general advocacy support, access to all country- and industry-specific updates, and access to most Council events.

  • Business missions to all 10 ASEAN markets which engage governments at the highest levels.
  • Off-the-record roundtables and policy briefings with senior government leaders in ASEAN and the U.S.
  • On-the-ground support for promoting your positions/policy priorities with policy makers.
  • Industry-specific, country-specific, cross-sector and regional advocacy through committees that target their engagement based on member priorities.
  • Advocacy on your behalf in situations where your company should not be directly identified or is unable to be present.

Chairman’s Council

Corporate membership provides general advocacy support, access to all country- and industry-specific updates, and access to most Council events.

  • All Corporate benefits.
  • Assistance with resolving company-specific trade or investment issues through our six regional offices and U.S.-based staff.
  • Develop effective advocacy strategies to impact policy concerns.
  • Identification of, and engagement with appropriate policy influencers to impact policy concerns.
  • Assistance in conducting follow-up after engaging government leaders (can include providing officials with additional materials, setting up meetings with their staff, getting a readout of the government’s reaction to the discussion).
  • Support for developing arguments that will resonate with target stakeholders.
  • Leading and setting the agenda and policy priorities of the Country and Industry Committees.