Energy Decarbonization, Electricity Sector Most Ready To Implement Carbon Trading

Deputy for Coordination of Environmental and Forestry Management at the Coordinating Ministry for Maritime Affairs and Investments, Nani Indrianti. (photo: Doc. Ministry of SOEs)

JAKARTA - The government is trying to conduct carbon trading or carbon trading in the electricity sector starting in the second quarter of 2022. This carbon trading pilot project will follow national and international standards.

Deputy for Environmental and Forestry Management Coordination of the Coordinating Ministry for Maritime Affairs and Investment Nani Indrianti said the carbon trading will begin to be implemented in April 2022.

"Especially for the electricity sub-sector. This starts from a sector that is more prepared," said Nani in the signing of the MoU on the Decarbonization of SOEs, Wednesday, February 2.

On the same occasion, Deputy Minister of SOEs I Pahala Nugraha Mansury added, this first step in carbon trading is good momentum.

"So we can carry out carbon offset market trading in the electricity sector. We are also able to assess and calculate the baseline reduction so that the mechanism can really be implemented," said Pahala.

Furthermore, Pahala said that for other sectors apart from the electricity sector, it is hoped that they will immediately prepare to achieve the carbon emission reduction target (decarbonization) that has been set by the government.

"Perhaps other sectors in parallel will begin to prepare, how is the reduction target and also the initiatives that need to be carried out to be able to achieve this and maybe here is the role of PT Biro Statistik Indonesia (Persero) or BKI which we expect and this is also a follow-up or a continuation of our initiative last year," he said.

Pahala said that this decarbonization is a very significant change that also requires BKI or a survey company that can help assess how much emissions are produced and how much are the results of emission reductions.

"Hopefully, through this initiative, we can coordinate in the future. We also need input, suggestions, and directions. Especially from the Ministry of Environment so that this can indeed run as well as possible," he said.