Can Accommodate CO2 To 400 Gigatons, The Value Of Indonesian Carbon Trading Will Reach 15 Billion US Dollars

Green energy illustration (Photo: Doc. unsplash)

Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut B Pandjaitan revealed that Indonesia was able to accommodate up to 400 giga tonnes of carbon in the delayed reservoir and saline aquifer.

"We may be one of the countries that can accommodate CO2 because we have a reservoir and we have a sealine aquifer which can suck up approximately 400 gigatons, so this is a very big number," Luhut told the media, Monday, July 24.

Luhut also estimates that the value of carbon trading in Indonesia could reach US $ 1 to 15 billion.

He also said that the implementation of Carbon Capture Storage (CCS) could be an important short-term strategy in reducing emissions in the oil and gas sector.

Furthermore, Luhut also said that the government plans to launch a carbon exchange in September 2023. This is part of an effort to increase the use of renewable energy and achieve net zero emission by 2060.

"And Indonesia as one of the largest economies in Southeast Asia wants to cut its emissions by more than 30 percent by 2030," said Luhut.

Later, carbon trading will be supervised by the Financial Services Authority (OJK) and only entities operating in Indonesia will be allowed to trade on the stock exchange.

"And the scheme will be similar to stock trading and the Financial Services Authority (OJK) will oversee activities on the carbon exchange," added Luhut.

On the same occasion, Kemenkomarves and the British Embassy in Jakarta and signed the Implementation Regulation of the UKPACT Carbon Economic Value Program (UK Partnering for Accelerated Climate Transitions) in Jakarta.

Luhut revealed that the agreement was following up on the UK-Indonesian MoU on Climate Action and Carbon Economic Values, which were signed on the sidelines of the G20 Summit in Bali last year.

The agreement shows the UK-Indonesian cooperation regarding the value of the carbon economy and the carbon market, an important component of Indonesia's approach to low-carbon development.

He explained, through this program, the UK is committed to 2.7 million for technical assistance to support technical development and coordination in climate action and the value of the carbon economy (NEK).

This program will support the Kemenkomarves in leading the Indonesian NEK Steering Committee, and involve relevant Ministries and Institutions including the Ministry of Finance specifically for carbon taxes.