Jakarta – The Director General of New Renewable Energy and Energy Conservation of the Ministry of Energy and Mineral Resources, Eniya Listiani Dewi, said that the government is drafting a New Energy and Renewable Energy Bill (EBET Bill) that will provide financial incentives to business entities that successfully reduce carbon emissions.
The EBET Bill will incentivise all business entities that can reduce emissions significantly through a carbon economic value mechanism. Based on the economic value of carbon, this incentive scheme is expected to be a strong impetus for the industrial sector to transform to green technology.
“This incentive model will be applied strictly so that only industry players who contribute to decarbonisation can receive financial support,” Eniya said at the launching of Hydrogen Refueling Station at xEV Center, Karawang, Tuesday, February 11.
Details of the funding mechanism and incentive distribution are still being finalised. Still, Eniya added that this approach is designed to provide economic rewards to companies that innovate to reduce emissions.
“This incentive is expected not only as an economic stimulus but also as a catalyst for the national energy transition towards net-zero emissions by 2060,” Eniya added.
In the EBET Bill, the incentives provided will be calculated periodically based on the emission reduction achieved in the industrial sector. The funds will be managed through a unique funding scheme that utilises cooperation with national and international financial institutions.
This carbon economy incentive is believed to open up new investment opportunities and encourage companies to improve production efficiency by adopting decarbonisation technologies. This is particularly important given the government’s ambitious target to achieve a higher renewable energy mix in the coming decades.
The EBET Bill is an integral part of the national energy transition strategy. By providing incentives to business entities that contribute to reducing emissions, the government hopes to encourage the growth of green industries that are both environmentally friendly and highly competitive in the global market.
“We believe that implementing these incentives will create a business environment that supports innovation and transformation to clean energy while accelerating the realisation of sustainable energy transition targets,” Eniya concluded. (Hartatik)
