Jakarta – Throughout 2023, carbon trading in the power plant subsector has recorded transactions worth Rp84.17 billion with a total carbon volume of 7.1 million tons of CO2 equivalent. This was revealed by the Secretary General of the Ministry of Energy and Mineral Resources (MEMR), Dadan Kusdiana, in a webinar entitled ‘Indonesian Carbon Trading and Exchange’ on Wednesday, July 23.
“The implementation of carbon trading in the power generation subsector aims to reduce negative impacts on the environment, encourage energy efficiency, increase the role of business actors in climate change mitigation, and encourage national energy transition, especially on the energy supply side,” said Dadan.
In the carbon trading roadmap for the power generation subsector prepared by the Ministry of Energy and Mineral Resources, there is potential to reduce greenhouse gas emissions by at least 100 million tons of CO2 equivalent by 2030. The roadmap is divided into three phases: the first in 2023-2024, the second in 2025-2027, and the third in 2028-2030.
“The three phases will gradually increase carbon dioxide emission standards for power plants, especially those based on steam or coal fuel. Emission standards will become increasingly stringent, requiring a combination of carbon trading and offsets,” Dadan explained.
By 2023, there will be 99 units of PLN grid-connected power plants with a capacity of 100 MW or more participating in carbon trading. For 2024, the number of participants increased to 146 units, including additional PLTU units with a capacity of 25 MW or more.
“With great potential for emission reduction and clean energy development, we can optimise the use of clean energy as well as carbon trading, resulting in a win-win solution in terms of energy supply and national emission reduction,” said Dadan.
Dadan also added that carbon trading will be applied gradually to all fossil fuel-fired power plants, both those connected to the PT PLN network and plants in non-PLN business areas and plants used for their purposes. (Hartatik)
