Socializing The Regulation Of The Carbon Sector Of Gatric, ESDM Targets A Dredging Of 500,000 Ton Carbon In 2023

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) has begun to socialize the Ministerial Regulation (Permen) of Energy and Mineral Resources No. 16/202 and the official carbon trading mechanism will begin from 2023-2024 for the first phase specifically for steam power plants (PLTU) that are connected to PLN networks.

Acting (Plt) Director General of Electricity at the Ministry of Energy and Mineral Resources, Dadan Kusdiana, said that his party is targeting a reduction of 500,000 tons of emissions from the electricity sector this year.

"From us, the calculation is 500,000 tons for this year," he said in 'Socialization of the Regulation of the Minister of Energy and Mineral Resources Number 16 of 2022 concerning Procedures for the Implementation of Economic Values of Carbon Subsectors for Power Plants, Tuesday, January 24.

Dadan added, this number is only 1/500 from the government's target agency which plans to reduce 240 to 250 million carbon emissions from the electricity sector.

He explained, this number is quite large because PLTU with a capacity of 1 gigawatt (GW) disposing of 5 million tons of emissions, meaning that the target is equivalent to stopping the PLTU with a capacity of 100 megawatts (MW).

"Approximately the value is the same as providing cleaner electricity with a scale of 0.5-0.6 GW that was built new. But we are not building, we are shifting. I believe what we are compiling is based on things that can be done directly at the generator," explained Dadan.

Dadan added, there are 99 PLTUs that follow the mechanism of carbon trading in the generating sector this year.

He said that later this regulation would become a reference in the implementation of Carbon Economic Value (NEK) including carbon trading activities in the sub-sector of power plants.

"We will not formulate our own mechanisms, but we make sure that the regulations that have been prepared together must run fairly for our sake, the goal with which we are to reduce GRK emissions," said Dadan.

Just so you know, this rule is a follow-up to Presidential Regulation (Perpres) Number 98 of 2021 concerning the Implementation of Carbon Economic Values for the Achievement of Nationally Stipulated Contribution Targets and Control of Glass House Gas Emissions in National Development.