Minister Hanif Prepares Five Strategic Projects For International Carbon Trade
JAKARTA - The Ministry of Environment and the Environmental Control Agency have prepared five strategic projects to support the implementation of international carbon trade.
The Minister of Environment, Hanif Faisol Nurofiq, said that the total equivalent volume of carbon dioxide (CO2) that can be certified from these projects reaches 1,780,000.
"To carry out the mandate according to regulations related to international carbon trading which was launched on January 20 yesterday, several projects have been prepared based on carbon registration data," said Hanif, Wednesday, January 22, 2025.
Hanif detailed that the five projects are, first, the operation of the Natural Gas Power Plant (PLTGU Priok Blok 4) with a potential certification of 595,000 tons equivalent to CO2, second, the conversion of Single Cycle Power Plants to Combined Cycle (PLTGU Grati Blok 2) with a potential of 400,000 tons equivalent to CO2, third, the operation of the Mount Wugul Minihydro Water Power Plant (PLTM), with a capacity of 5,000 tons equivalent to CO2.
"Fourth, the operation of PLTGU PJB Muara Karang Block 3, which accounts for 750,000 tons equivalent to CO2 and the fifth conversion of Single Cycle Power Plants to Combined Cycle (Blok 2 PLN NP UP Muara Tawar) amounting to 30,000 tons equivalent to CO2," he explained.
The price of Indonesian carbon credit is offered from Rp. 96,000 to Rp. ten thousand per tonne through the units of Indonesia Technology Based Solution (IDTBS) and IDTBS Renewable Energy (IDTBS-RE) to the international market.
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Hanif explained that the implementation of carbon trading reflected Indonesia's commitment after the United Nations Climate Change Conference (COP29).
This program is also part of efforts to accelerate the contribution determined by the second National (NDC) to be proposed in February 2025.
"The Indonesian government guarantees that every certificate issued has been validated and authorized, so that there are no multiple records, double payments, or double claims," he said.
The carbon trading mechanism in Indonesia is carried out in accordance with Presidential Regulation Number 98 of 2021, through the National Regtribution System for Climate Change Control (SRN-PPI). This system documents the entire carbon unit trading process.
Hanif also said that the government continues to strengthen key elements of the carbon ecosystem, such as the National Registration System (SRN), Measurement, Reporting, and Verification (MRV), as well as a Greenhouse Gas Emission Reduction Certificate (SPEI-GRK).
"With these elements, the emission reduction certificate issued by Indonesia has high integrity and can be trusted in the international market," he concluded.