JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) through the Directorate General of Electricity (Ditjen Gatrik) targets 99 units of steam power plants (PLTU) to participate in carbon trading by 2023.
The Director General of Electricity, Jisman Hutajulu, detailed that the distribution of 99 units of PLTU Batubara from the 42 companies was 55 units of PLTU from PLN Group and 44 units of PLTU from Independent Power Producer (IPP).
"The 99 generators that will participate in the carbon trade in 2023 are PLTI above 100 MW. In 2024 we will enter more than 50 MW of PLTU. Well, in 2025 all generators will participate in the carbon market, both PLTGU and PLTG," said Jisman in Energy Corner quoted on Tuesday, March 14.
Jisman explained that Indonesia's energy sector CO2 emission reduction target was 358 million tons of CO2e or 12.5 percent with its own capabilities, and 446 million tons of CO2e or 15.5 percent with international assistance from the Business as Usual (BAU) scenario in 2030.
According to Jisman, in order to achieve the target of reducing greenhouse gas emissions, it is also necessary to play a role in non-party stakeholders (NSP) so that the reduction in CO2 emissions is not only carried out by the Government.
"The instrument that can attract interest from NPS in reducing GRK emissions is through carbon trading," explained Jisman.
The current implementation of carbon trading, called Jisman, is carried out through direct trading between business actors who participate in carbon trading, both through emission trading mechanisms and offsets of GRK emissions.
"The price of carbon can be determined based on an agreement between carbon trading participants, so it can be said that the price of carbon is following the market price. Even though there is no carbon exchange and price fixing, business actors can still trade carbon in a manner (Business to Business) between power generation units," said Jisman.
As is known, the Ministry of Energy and Mineral Resources officially launched the Electric Power Sub-Sector Carbon Trade on February 22, 2023.
Based on the carbon trading roadmap that has been prepared, the implementation of carbon trading has the potential to reduce GHG emissions by more than 36 million tons of CO2e by 2030.
The launch of Carbon Trading is a follow-up to the mandate of Presidential Regulation Number 98 of 2021 concerning the Implementation of Carbon Economic Values for the Achievement of Nationally Determined Contribution Targets and Control of Greenhouse Gas Emissions in National Development.
This carbon trade is a form of Indonesia's commitment to supporting the achievement of Net Zero Emission and reducing GRK emissions.
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