Saturday, July 13, 2024
HomeBUSINESSIndonesia aims to Develop High-Quality and High-Integrity Carbon Credit Projects

Indonesia aims to Develop High-Quality and High-Integrity Carbon Credit Projects

JETP has set targets to be achieved by 2030, including 250 Mt CO2 emissions (on-grid) and a 44 per cent share of renewable generation. To meet these targets, an estimated $97.3 billion will be required by 2030.

SINGAPORE
– Indonesia and the International Partners Group (IPG), led by the United
States and Japan, have jointly committed to establishing the Just Energy Transition
Partnership (JETP) during the 2022 G20 Summit in Bali, Indonesia. JETP aims to
accelerate a fair and gradual energy transition in Indonesia’s electricity
sector. Through JETP, Indonesia pledges to reduce peak greenhouse gas emissions
to 290 metric tons of carbon dioxide (Mt CO2) by 2030, accelerate the share of
new and renewable energy (NRE) to 34 Mt CO2, and achieve Net Zero Emission
(NZE) by 2050. In support of Indonesia’s goals, IPG members have promised
funding of $20 billion from the public and private sectors for energy
transition projects in Indonesia.

According
to Edo Mahendra, the Special Advisor to the Coordinating Minister for Maritime
and Investment Affairs of Indonesia, JETP has set targets to be achieved by
2030, including 250 Mt CO2 emissions (on-grid) and a 44 per cent share of
renewable generation. To meet these targets, an estimated $97.3 billion will be
required by 2030.

“In
2030, there will be over 400 priority projects, and we need an investment of
$66.9 billion,” he stated during a presentation on the JETP Implementation
Phase and Indonesia Carbon at an investment forum held in Singapore on Friday
(8/12).

The
Comprehensive Investment and Policy Plan (CIPP) for the Indonesia Just Energy
Transition Partnership (JETP) has been released for public comment. The CIPP, a
“living document” requiring regular updates to reflect global trends
and national priorities, covers energy transition pathways, policy
recommendations, financing, and implementation.

Image

“The
JETP website acts as the meta-monitoring platform for the public, facilitating
matchmaking between project developers and financiers. It also serves as a
dashboard to monitor and evaluate progress.”

Indonesia
is pursuing multiple carbon pricing mechanisms to capture value from emissions
reductions.

“The
carbon pricing mechanism is divided into two – market mechanism and non-market
mechanism. For market mechanisms, there is the Emission Trading System (ETS)
and offset carbon market.”

Edo
added that Indonesia aims to produce high-quality and high-integrity carbon
credit projects, with the benefits of spurring investment in emission
mitigation activities and low-carbon technology. The country also aims to
unlock opportunities from domestic and international entities seeking high-quality
carbon credits at a premium price and promote Indonesia as a global carbon
market hub.

“To
further develop its carbon market, Indonesia needs to focus on three key
pillars. First, opening the Indonesian carbon market for carbon credits from
projects in Indonesia and other countries and exploring the potential for
cooperation for derivative products. Secondly, collaboration with
internationally accredited carbon standards to ensure mutual recognition of
various traded carbon credits and to build quality of the human capital that
manages the Indonesian carbon market.”

According
to Edo, the last crucial aspect is technology, “Using technology that can
maintain the integrity, security, and transparency of carbon transactions, such
as blockchain,” he concluded.

This press release has also been published on VRITIMES

- Advertisment -spot_img

Related Articles