Indonesia Carbon Policy Landscape

Mandala Consulting
September 2024
Objective:

Provide basic overview on carbon and how each

component contributes to carbon emissions. At the
same time, giving full picture of the dynamic and
complexity of global and Indonesian carbon sector.

2
Table of What is carbon and how does it impact climate change? 4

Contents What are the components of greenhouse gases? 6

How much carbon do we emit? 10

How do we measure carbon emissions? 15

How do we reduce carbon emissions and how does carbon pricing
work? 18

How do we know all of these can be trusted? 28

Where does our government regulation stands regarding carbon
and what are their impacts to carbon reduction businesses? 32

How attractive is the carbon market in Indonesia financially? 41

Who are the key stakeholders in Indonesia?

43

What are the top issues of carbon trading in Indonesia? 46

What is carbon
and how does it
impact climate
change?
4
4
The intensity increment of Greenhouse Gases in the atmosphere is the main cause of
climate change effect such as an increase in natural disasters occurrence
Greenhouse Gases (GHG):
Gases in the atmosphere that trap heat. Five main GHG that dominates the atmosphere are carbon dioxide, methane, nitrous oxide,
water vapor and ozone.

Carbon Footprint:
the total amount of GHG emitted by individual, organization, or product either directly or indirectly into the atmosphere as a result of
human activities. Total GHG is calculated by adding the emissions from every stage of a product or services’ lifetime:

Material Production Manufacturing Use End-of-life

The science behind: Heat Trap

Heat from the sun comes through the atmosphere and then
emitted back as infrared radiation. Greenhouse effect is when
the heat tries to leave earth, but some of it gets trapped by
chemicals like water vapor, carbon dioxide, and methane in
the atmosphere.

GHG refers to gases that trap heat in the atmosphere. The

increase of GHG quantity in the atmosphere means an
increase in trapped heat that correspond to rise of global
temperature.
Illustration source: https://www.nrdc.org/stories/greenhouse-effect-101
5
What are the
components of
greenhouse
gases?
6
6
Carbon Dioxide, Methane, and Nitrous Oxide accounted to 93% of total Global Greenhouse Emission

Throughout a product’s lifecycle various GHGs are emitted, each with a greater or lesser ability to trap heat in the atmosphere:
Industrial Gasses

Greenhouse CO2 CH4 N2O HFC, PFC, SF6 , NF3

Gases Hydrofluorocarbon, Perfluorocarbon,
Carbon Dioxide Methane Nitrous Oxide Sulfur hexafluoride, Nitrogen trifluoride

Emissions characteristic

HFC: Refrigeration, air-condition,

Agriculture aerosols, and foams
Combustion of
Leak from natural (fertilizers), fuel
Main fossil fuels (coal, PFC: electronic industry to produce
gas systems and the combustion,
emitting natural gas, and semiconductors
raising of livestock wastewater
activity oil), cement
management, and
production, land SF6: electronic utilities
industrial processes
use change
NF3: high-tech industries

Atmosphere 1.5 - 200 years,

300 - 1,000 12 years 114 years 10,000 - 50,000 years,
lifetime
years 3,200 years, and
100 years (respectively)

Heat-trapping
28 times stronger 265 times stronger PFC : 6,630 times stronger than CO2
ability 1 (low)
(warming impact of 1 tonne of than CO2 than CO2 SF6 : 23,500 times stronger than CO2
CO2 over a 100 year timescale)

Differences between GHGs are accounted for by the global warming potential of each gas and the carbon footprint is measured in units of carbon dioxide equivalents (CO2e)
7
Carbon Dioxide, Methane, and Nitrous Oxide accounts to significant amount out of the
total Global Greenhouse Emission

Emissions contribution to Global Greenhouse (GHG) Emission refer to Appendix 1

Greenhouse
Gases CO2 CH4 N2O
Proportion from
total GHG
emission in 2019
72% 16% 5%

94% are from: 98% are from: 96% are from:

1. Electricity and heat 1. Agriculture 1. Agriculture
Top generating 2. Transportation 2. Fugitive Emissions* 2. Industry
sectors across 3. Manufacturing and 3. Waste 3. Waste
all sectors Construction
4. Buildings
5. Industry

Each of these sectors emitted Agriculture sector emitted 60% of Agriculture sector emitted 40%
more than 97% of CO2 compare CH4 out of total GHG emitted within of N2O out of total GHG emitted
to other GHG within each of these this sector. within this sector
Highlights
sectors:
● Electricity and heat While Fugitive Emissions and Waste
● Transportation sectors each emitted 91% of CH4
● Manufacturing and out of total GHG emitted within each
Construction of these sectors.
* Fugitive emissions: unintended and undesirable releases (leakage or discharge) of gases or vapors from pressure containing
equipment, primarily associated with industrial activities 8
Appendix 1: Emissions contribution to Global Greenhouse Emission

Total Global Total CO2 % of CH4

emission Total CH4 emission Total N2O emissions % of N2O
Greenhouse % of GGE % of CO2 from from Total
component out component out of component out of from Total
Sectors Emission (GGE) contribution Total GGE GGE within
of Total Global Total Global GHE Total Global GHE GGE within
contribution in 2019 in 2019 within sector (measured in CO2 equivalents sectors (measured in CO2 equivalents
(measured in CO2 equivalents GHE and in billion of tonnes unit) and in billion of tonnes unit) sectors
and in billion of tonnes unit) (in billion of tonnes unit)

Electricity and heat 15.83 31% 15.76 99.6% - - - -

Transportation 8.43 17% 8.22 97.5% - - - -

Manufacturing and
6.30 12% 6.25 99.2% - - - -
construction

Agriculture 5.79 11% - - 3.49 60% 2.3 40%

Fugitive emissions* 3.40 7% 0.28 8% 3.11 91.5% 0.006 0.2%

Buildings 3.07 6% 2.79 90.9% - - - -

Industry 3.06 6% 1.61 53% 0.009 0.3% 0.26 8%

Land-use change
1.64 3% 1.36 83% 0.19 11% 0.09 5%
and forestry

Waste 1.63 3% - - 1.49 91.4% 0.14 9%

Aviation and
1.31 3% - - - - - -
shipping

Other fuel
0.60 1% 0.59 98.0% 0.01 2% 0.002 0.3%
combustion

Total 51.06 36.86 72% 8.30 16% 2.80 5%

Energy Sectors Table is processed from source: https://ourworldindata.org/emissions-by-sector

9
How much
carbon do we
emit?
10
10
 Energy, Agriculture, Forestry and Land-Use Change were the biggest emitters, emitted a
total of 46.4 billion tonnes or 91% of total global GHG in 2019
Sectors Energy Agriculture, Forestry, Industry Waste
and Land-Use Change

Emission
Share out of
total GHG 76% 15% 6% 3%

Usage in Industry Livestock &

25% ( 12.9 ) Manure
Usage in Building 5% ( 2.3 )
18% ( 9.3 )
Agricultural Soils
Transport 3% ( 1.7 )
17% ( 8.6 ) Crop Burning
3% ( 1.4 )
Unallocated Fuel
Emission Combustion
Deforestation Landfills
8% ( 4.1 ) Cement
Breakdown* 2% ( 0.9 )
3% ( 1.8 )
2% ( 1.0 )
(measured in CO2 equivalents Emissions
and in billion of tonnes) from Energy Cropland
Production 1% ( 0.6 )
Wastewater
6% ( 3.1 ) Chemicals 1% ( 0.7 )
3% ( 1.3 )
Agriculture
Rice
& Fishing
Cultivation
2% ( 0.9 )
1% ( 0.5 )

* using 2019 total GHG with percentage allocation based on 2016 proportion
Illustrations are processed from source: https://ourworldindata.org/emissions-by-sector
11
Carbon emissions from other perspective: viewing it from their type of consumption*
* the figures here are for United States in 2020

Food Household Personal Transportation

Accounts to 10-30% of a household’s For each kWh of electricity generated, 16% of the total GHG emissions was
carbon footprint an average of 0.37 kg of CO2e is or emitted 0.9 billion metric tonne of CO2e
released at the power plant
Production accounts for 68% of food
emissions and transportation accounts
84% of emitted lifetime (roughly 29,937
9.4% of the total GHG emissions was kg CO2e) of an internal combustion
for 5% residential electricity use or emitted engine come from the use phase
561.1 mmt CO2e
Meat products exhibit higher carbon
footprint per calorie than vegetable due average emits 0.22 kg of CO2 per km
to less efficient conversion of plant to Space heating and cooling are typically
animal energy, methane release from projected to make up to 43% of average emits 0.25 kg of CO2e per
manure management, and enteric passenger km. Total commercial aircraft
energy consumption in household
fermentation in animals GHG emissions was 92.1 mmt CO2e*
*emissions vary according to aircraft type, trip length,
Cattle, sheep, and goats contributed 175 occupancy rates, and passenger and cargo weight
million metric tonnes (mmt) of CO2e
from enteric methane emissions. emitted 34.2 mmt CO2e, or 2% of
transportation emissions
Eliminating food transportation per
household for one year could save the
GHG equivalent of driving 1,609 km.
Information source: https://css.umich.edu/publications/factsheets/sustainability-indicators/carbon-footprint-factsheet
12
Carbon visuals will make quantifying carbon footprints volume easier, such as to offset 1x
of filling up gas tank of a car require sequestering 566 m2 of forests for 1 year

Average carbon footprint per person is approximately 12 tonnes of CO2 per year

What does a tonne of CO2 looks like? What does 50 liters of gasoline consumed looks like?
Equivalent to:
Expressing CO2 in terms of activities 117 kg of CO2e released

● 4,023 km driven by an average gasoline passenger vehicle or Equivalent to GHG emissions from:
● 120,000 smartphone charges or 484 km driven by an average gasoline passenger vehicle
● 500 litres of diesel consumed
Equivalent to CO2 emissions from:
59 kg of coal burned
Equivalent to GHG emissions avoided by:
41 kg of waste recycled instead of landfilled or
4.4 incandescent lamps switched to LEDs
Equivalent to carbon sequestered by:
1.9 tree seedlings grown for 10 years or
566 m2 of forests sequestering CO2 for one year
Information source: https://www.edenseven.co.uk/

Rule of thumb

● CO2 offsetting rate varies from 21.8 to 31.5 kg CO2 per tree ● There are approximately 300 to 500 trees per hectare
● To compensate 1 tonne of CO2 31 to 46 trees are required ● 1 hectare of forest: 500 trees x 24 kg CO2/tree = 12 tonnes CO2
● 1,000 kWh of electricity emits 400 kg of CO2 offsets/hectare
● 1,000 kWh of natural gas emits 181 kg of CO2
● 1 liter of fuel oil emits approximately 2.7 kg of CO2
Information source: https://www.encon.eu/
13
Although Indonesia has moderate yearly GHG emission, per capita emissions is
considerably lower compare to other countries especially in Asia

Comparative Study Rationale

Advanced in terms of Slightly lower Lower annual Lower annual CO2 Significantly Significantly
carbon trading market annual CO2 CO2 emissions emissions lower annual lower annual
and regulation emissions CO2 emissions CO2 emissions

2020 annual CO2e emissions

Biggest Emitter GDP Dominating GDP Sector
Country GHG Emissions Per Capita Emissions NDC Targets in 2030
Agriculture (56%)
1.5 Bil tonnes Manufacturing (20%) 5.4 tonnes Reduce by 29% from 2030 USD 1.2 Tril Manufacturing (19.3%)
business as usual
Manufacturing (25%)
5.3 Bil tonnes Electricity (24%) 16.0 tonnes Reduce 50% - 52% from USD 23.3 Tril Services (77.6%)
2005
Electricity (34%)
1.1 Bil tonnes Manufacturing (28%) 8.4 tonnes Removal of 46% from USD 4.9 Tril Services (71.4%)
2013
Manufacturing (27%)
681.2 Mil tonnes Electricity (25%) 8.2 tonnes Reduce 40% from 1990 USD 4.3 Tril Services (62.9%)

Electricity (42%)
613.5 Mil tonnes Manufacturing (22%) 11.8 tonnes Reduce 40% from 2018 USD 1.8 Tril Services (57.0%)

Manufacturing (35%) Reduce 15.8% from

458.1 Mil tonnes Electricity (32%) 4.7 tonnes USD 336.1 Bil Services (41.2%)
business as usual

Electricity (31%)
367.8 Mil tonnes Agriculture (30%) 11.4 tonnes Reduce 45% from 2005 USD 373 Bil Services (51.6%)
14
How do we
measure
carbon
emissions?
15
15
Three scopes of greenhouse gas protocol accounting method: Scope 1 emissions are
directly owned or controlled by a company, while scope 2 and 3 emissions are indirect
Scoping is a mechanism that classify various types of emissions generated within a company’s operations and throughout its value chain

Scope 1 Scope 2 Scope 3

Burn Buy Beyond
Indirect emissions associated with
Indirect emissions from purchased everything else that support company
Emissions originating directly from
Definition energy (company consumed energy activities.
sources owned or controlled by an entity
that were generated off site) Note: unless you own physical assets, the majority of
your emissions will be scope 3

8 upstream categories: purchased goods and

services, capital goods, fuel and energy-related
activities, transportation and distribution,
operational waste, business travel, employee
Example commuting, leased assets
Emissions from combustion of fossil fuels
in vehicles, fuel to power equipment in Electricity, steam, heat and cooling 7 downstream categories: investments, franchises,
buildings, and industrial processes leased assets, end-of-life treatment of sold
products, use of sold products, processing of sold
products, transportation and distribution

Company Upstream Upstream + Downstream

Company + Upstream: Occur in the early stages of the supply chain that includes activities Downstream: Occur in close to the point
such as extraction of raw materials, production of components, manufacturing, and of consumption that includes activities
transportation of goods or resources. Associated with the suppliers, producers, and such as distribution, retail, consumer use,
manufacturers involved in the initial stages of the product's creation. and disposal or recycling of the product.
Emissions are as a result of energy
consumption, transportation, or other
activities associated with the product's use
or disposal and are more directly
attributed to the end-user or consumer. 16
Example of how Apple report their carbon footprint in terms of scoping and typical GHG
emissions by sector
Scope 1 Scope 2 Scope 3

76%
25.1 million MT of CO2e Product
manufacturing

3%
0% Business < 1% 5% 14%
Apple’s Carbon < 1% Emissions
travel &
employee
Material
Product
Product use
Direct from recovery
Footprint commute transport
emissions electricity

Corporate emissions Product life cycle emissions

Energy

Consumer Discretionary

Materials

Utilities Typically every company within sector has different

Industries composition GHG emissions by scope. Most
Consumer Staples

Information Technology
sectors have significant Scope 3 Downstream
Financials GHG emissions, except for Communication
Communication Services Services and Health Care sectors.
Health Care

Real Estate

0% 20% 40% 60% 80% 100%

Scope 1 Scope 2 Scope 3 Downstream Scope 3 Upstream
Illustration sources: https://plana.earth/academy/what-are-scope-1-2-3-emissions and https://www.allianzgi.com/en/insights/outlook-and-commentary/net-zero 17
How do we
reduce carbon
emissions and
how does
carbon pricing
work?
18
18
There are two main tools of carbon reduction solution: technology base and nature base

Technology Base Nature-Based Solutions

Strategy to remove CO2 using natural processes and natural

Innovative methods that are designed to remove CO2 from habitats to sequester GHG from the atmosphere and store it
the atmosphere or remove it from emission sources. in vegetation, soils, and others. There could be an
involvement of technology in the nature-based solutions.

Examples: Examples:

● Energy Efficiency Improvements: implementing energy ● Renewable Energy Transition: changing from fossil
efficient technologies fuels base to renewable energy sources (solar, wind,
hydroelectric and geothermal power)
● Low Carbon Transportation: encourage cycling, walking
and electric vehicles ● Carbon Offsetting: investing in carbon offset projects
that remove CO2 from the atmosphere, example:
● Carbon Capture Storage: capturing carbon from power
reforestation, afforestation or carbon farming initiatives
plant and storing it underground to prevent GHG release in
the atmosphere ● Sustainable Agriculture: adopting farming practices
that improve soil health and reduce greenhouse
● Green Building Design: constructing energy-efficient
emissions
building
● Waste Reduction and Recycling: the aim is to reduce
methane and potent GHG from landfills

19
Alternative to Nature Base Solution: Coastal Blue Carbon where absorptions of CO2 from the atmosphere
and storing it within saltwater ecosystems gain traction as it generates higher amount of carbon
Salt Marshes Mangroves Seagrass Meadows

Soils and vegetation in coastal ecosystems store between 10 and 24 billion metric tonnes of carbon, in addition every year they add
between 30 to 70 million metric tons to their soils

Coastal plants and trees capture carbon dioxide through photosynthesis.

While a portion of this carbon is released back into the atmosphere as
methane and carbon dioxide, some gets stored in the soil, and a portion is
transported to ocean sediments. These submerged soils and sediments
serve as effective long-term carbon sinks. On land, decomposition happens
right away, releasing carbon dioxide in the process. In flooded areas with low
oxygen levels, decomposition occurs at a slower pace, allowing for greater
carbon retention.

● Coastal blue-carbon ecosystems are gaining attention as a valuable

solution for reducing atmospheric carbon dioxide due to their
remarkable carbon sequestration potential relative to their size.
● Seagrass is able to capture and store approximately 220 grams of
carbon per square meter per year from the atmosphere in its soils -
which exceeds the carbon storage rate of tropical rainforest by more
Illustration and information source: www.climate.gov than 3x per square meter, surpasses the rate in temperate forests by
over 7x, and exceeds the storage rate in grasslands by more than 10x.

20
Appendix 2: Global Carbon Storage Potential of Coastal Ecosystems in millions of tonnes of
carbon per year and global locations of key blue-carbon ecosystems

Global Carbon Storage Potential of Coastal Ecosystems

The estimates vary from approximately 0.15 million tonnes per year (lightest
green) in regions like Greenland, west part of South America, and around
Antarctica, to 11 million tonnes per year (dark blue) in areas like Australia,
Indonesia, and the United States.

Illustration source: www.climate.gov

Global Locations

The carbon storage capacity of coastal ecosystems have its own weakness despite the benefits: when these ecosystems are disrupted or drained, they
have the potential to release significant amounts of CO2 back into the atmosphere. However, when protected or restored, they can serve as a valuable
tool for offsetting CO2 emissions, particularly for island nations and developing countries with relatively lower greenhouse gas emissions. Additionally,
these ecosystems offer various other benefits such as wildlife habitat and hurricane protection. Consequently, strategies aimed at safeguarding and
revitalizing coastal blue-carbon ecosystems are expected to play an increasingly important role in international climate policies in the years ahead.
Illustration and information source: www.climate.gov
21
Carbon market offers the opportunity to trade three types of carbon:
Reduction, Offset, and Removal

Removal
Reduction Offset

A reduction emissions effort from An effort to avoid an increase of Refers to absorption or

status quo, then these emissions emissions that are release to the suppression removal of carbon
reduction could be sold in the carbon atmosphere. Nature-Based Solution from the atmosphere using
market. Example: a factory previously example: forest conservation. technology or other methods. The
had 1,000 of CO2e emissions, then this aim is solely to absorb or eliminate
factory utilized solar panels that result carbon from the atmosphere.
in a decrease of emissions to 800 of Nature-Based Solution example:
CO2e emissions. The reduction of 200 reforestation of deforested areas.
CO2e emissions could be sold in the
carbon credit market. This type of
carbon credit has the cheapest price
per ton. Other Nature-Based Solution
example: palm oil companies use
other environmentally friendly
method other than burning to clear
up the land for plantation.

22
Compliance offsetting is legally required and enforceable by regulations, while voluntary
offsetting is optional and driven by choice

Compliance Offsetting Voluntary Offsetting

● Regulations implemented by governments or regulatory bodies ● Initiatives by individuals, organizations, or businesses on a
that require certain entities or industries to offset their voluntary basis to offset their carbon emissions
emissions ● Proactive step taken by entities although they are not legally
● A part of a climate change mitigation strategy or a specific obligated to reduce their emissions
regulatory requirement for specific sectors ● Might be in the form of investing in offset projects and
● Ensures that entities are accountable for their emissions and supporting sustainable development initiatives
incentivizes emission reduction efforts. ● Carbon credit mechanism is the offset scheme
● Carbon tax, cap and trade, and carbon credit mechanism are the
offset schemes

Carbon Pricing: an approach to reducing GHG emissions by assigning monetary value to carbon dioxide (CO2) emissions

Carbon Tax Cap and Trade Carbon Credit Mechanism

Tax imposed on the carbon content of fossil fuels Sets a limit on emissions for industries and power Involve the creation and trading of carbon
or other emissions sources, setting a price per plants. These entities must buy allowances to credits or offsets. Projects that reduce emissions,
tonne of CO2 or equivalent emissions. It is applied emit a certain amount of greenhouse gases. If example: renewable energy or reforestation
at the point of carbon emission, increasing the cost they exceed their allowances, they must purchase initiatives, can generate these credits and can be
of carbon-intensive activities and creating an more from others with surplus allowances. sold to entities looking to offset their emissions.
economic incentive to reduce emissions.

23
Cap and Trade sets a limit on emissions and allows allowances trading, while carbon credit
mechanisms focus on generate and trading credits based on emissions removals

Cap and Trade Carbon Credit Mechanism

Incentivize emission reduction projects by generating
Set an overall limit on GHG emissions with a goal to
tradable carbon credits; the focus is on promoting specific
Objective achieve a specific emission reduction target by
projects or actions that result in verifiable emissions
allocating or trading emission allowances.
reductions or removals.

Allocate a fixed number of emission allowances to Generate tradable carbon credits through specific
Emission covered entities and sectors. These allowances projects or activities that reduce or remove greenhouse
Allowances represent the right to emit a specific amount of gas emissions. Each credit represents a quantified
greenhouse gases. emission reduction or removal

Create a market for trading emission allowances Create a market for trading carbon credits. Entities or
Market
among entities. Entities with excess allowances can individuals can purchase credits generated by emission
Dynamics sell them to those needing additional allowances. reduction projects to offset their own emissions.

More flexible and can support projects in various sectors,

Coverage and Typically focus on larger industrial sectors or entities
such as renewable energy, energy efficiency, afforestation,
Scope that are major emitters
or methane capture.

Regulatory Often implemented as mandatory compliance Usually operate under voluntary frameworks, but can be
Nature mechanisms under government regulations integrated into regulatory

Provides a market-based approach, allowing flexibility

Incentivize the development of emission reduction
Advantages and cost-effectiveness in achieving emission
projects and support sustainable development initiatives
reductions
24
Carbon offsetting is a strategy to mitigate the impact of GHG emissions and reduce carbon footprint

Definition: Carbon Offset

the action of compensating for carbon dioxide emissions arising from industrial or human activity, by participating in programs
or investing in projects designed to make equivalent reductions of carbon dioxide in the atmosphere.

Carbon offset projects are vetted and verified to ensure that they are additional, meaning that the emission reductions or
removals achieved would not have occurred without the support of the offset funding. Verification is typically done by
independent third-party organizations to maintain transparency and credibility.

3 Pillars of Carbon Offset Market

Seller Market Clearing + Marketplace Buyer

Company A is Measurement, Registration and Verification Company B has emissions to be reduce

developing carbon Company A’s carbon projects are and purchase carbon credits. Company B
reduction projects independently verified and registered with a approach a retailer, broker or carbon
recognized voluntary carbon offset program. registry to buy carbon credit.
The program issues carbon credits that can
be traded on the carbon market

25
Brief overview of carbon offset market

Project Design Financing Validation and Carbon Credit Carbon Credit

Verification Issuance Market

● Project Feasibility ● Securing investors ● Project Design Once it has been Could be sold via
Study (including and funds for the Document fully validated and carbon exchange,
profit (loss) and project audited by third verified by the carbon broker, or
operational cost) party auditor registry, carbon directly to company.
● Detail on who is
● Registry process: credit can be sold
● Project Design going to fund
where they will in the market.
Document (example:
visit the site or
offtaking, where a
● Baseline and forest to validate
company invest in
additionality study the carbon project.
carbon project
● Land tenure study development) and
● Etc using what kind of
funds (example:
ESG fund)

26
Two main important stakeholders to ensure the existence of carbon offset market are
Project Developers and Registrator

Third Party Auditors Registration and Certification

Independent emissions assessors before of Carbon Offset Programs 1 Finance carbon credit projects
projects are registered and regularly
Setting carbon credit quality standards,
assesses project emissions reduction after
registration. For Forestry in Indonesia: 5 certification, issue carbon credits.
Utilize registry to track certified carbon 2 Validation and verification
MUTU and TUV. For Industry there are
2 plenty: ID Survey, Sucofindo, etc.
credit projects and credit issuance. In payment
Indonesia it is done by SRN.
3 Registration and credit issuance fee
6

3 4 List issued carbon credits for a fee

Project Developers and Land Owners* Carbon Credit Buyers

Develop carbon offsets projects and Buy carbon credits to offset personal or 5 Accreditation or annual fee
might sells carbon credits to buyers. companies’ emissions. Example:
Example: governments, NGOs, and companies regulated by cap-and-trade
companies regulation, companies that buy credit Account registration fees to
7 6
* can be two different parties (PD can invest to LO or PD) voluntarily, governments transfer and retire credits

Buyers finance continued operation

4 to offset projects. Options: engaging
7 7 directly with project developers or
1
through third parties

Investors Carbon Exchanges Carbon Brokers / Retailers

Financing of credit projects. Carbon credit marketplace where Offer range of credits and services that
Example: companies, financial verified credits are listed, bought can reduce time required if engage
institutions, and other institutions and sold directly with project developers

: capital flow : key in sales of carbon offset

Source: https://paiaconsulting.com.sg/carbon-offsets-and-credits-explained/ and edited through expert consultation

27
How do we
know all of
these can be
trusted?
28
28
Carbon Offsetting Standards: sets of guidelines and frameworks that establish criteria
for the development, implementation, and verification of carbon offset projects
Carbon Offset Standards purpose is to guarantee the trustworthiness, openness, and ecological soundness of these projects while also
establishing a shared methodology and terminology for measuring, reporting, and verifying the reduction or removal of emissions.

Standards for certifying carbon emissions reduction firms: A voluntary climate change mitigation framework by UN:

● Commonly adapted voluntary offset standards ● Referred to as Clean Development Mechanism (CDM) that
● Offers robust quantifying and verifying GHG emission allows emission reduction projects in developing countries to
reductions framework earn certified emission reductions (CERs).
● Projects aiming for these standards must adhere to specific ● It encompasses activities related to conservation, sustainable
criteria related to project design, monitoring, reporting, and management of forests, and enhancement of forest carbon
third-party verification stocks.
● Reducing Emissions from Deforestation and Forest
Degradation (REDD+), framework developed under UNFCCC
to address deforestation and degradation.

It is recommended for individuals and organizations to choose projects that comply with acknowledged standards and have been
independently verified by third-party auditors to ensures the reliability and efficacy of the offsetting process while maintaining its integrity.

29
VCS has the biggest market share among the other standards with the most registered
projects that are mainly in the developing countries

746 Million credits 184 Million credits 66 Million credits 63 Million credits
Market Volume
70.4% share 17.4% share 6.2% share 6.0% share

Name of credits Verified Carbon Verified Emission Climate Reserve Emission

(in 1 tCO2e) Units Reductions Tonnes Reduction Tonnes

1,792 registered 1,313 registered projects

Geographical projects in 82 countries in 80 countries
26 projects in the US 156 projects in the US
scope (dominant in developing (mainly purchased by
countries) buyers in Europe)

Covers most Covers industrial

Covers agriculture and
Covers all project project classes processes, land use, land
Sectoral scope classes excluding project
forestry, energy, waste, and
use change and forestry,
non-CO2 GHG abatement
level REDD+ carbon capture, waste

Information source: https://vcmprimer.org/chapter-7-what-is-the-role-of-carbon-standards-in-the-voluntary-carbon-market/

30
Although scandal within Carbon Offsetting Projects has caused some doubts from people,
big corporations remain active in carbon offset procurement as a corporate responsibility

Researchers’ studies Further investigation by journalists

Two groups of researchers Analysis on projects by comparing estimates made by the

offsetting projects with results obtained from scientist

Has issued more than 1 billion carbon credits Analyzed ⅔ of 87 Verra-approved active projects 94% of the credits produced by the projects
and approves ¾ of all voluntary offsets. (several were left out because there was not enough information should not have been approved
available to be fairly assessed)

Rapidly growing $2 billion voluntary offset

Credits from 21 projects had no climate
projects The studies found only 8 out of 29
benefit
Verra-approved projects* showed evidence of
Rainforest protection programs makes up to meaningful deforestation reductions
40% of the approved credits 7 projects had between 52% - 98% fewer
* where further analysis was possible
than claimed using Verra’s system

Based on investigation at least 90% of Verra’s rainforest

carbon do not results in real emission reductions
University of Cambridge team Only 1 had 80% more impact

94.9 m
carbon credits claimed In 32 projects*, the baseline scenarios of
forest loss are overstated by about 400%.
Out of 40 Verra projects, several had Out of these 3 projects in Madagascar have
stopped some deforestation, although the achieved excellent results and altered the
areas were extremely small. figures. If these 3 projects are not included,
5.5 m the average inflation is about 950%.
real emissions reductions Only 4 projects were responsible for ¾ of
the total forest that was protected. * where it was possible to compare Verra’s claims with
the scientists study finding
Each credit is equal to one metric tonne of CO2 equivalent

Illustration source: The Guardian analysis

31
Where does our
government
regulation stands
regarding carbon
and what are
their impacts to
carbon reduction
businesses?
32
32
Indonesia’s Carbon Credit Market as regulated by Presidential Regulation 98 / 2021

Mechanism Procedures Indonesia’s National Revenue

Carbon Exchange Indonesia’s Fund

Domestic or Non-Tax Revenue
Carbon Trade Management
International (PNBP)
through BPDLH
Direct (domestic only)

Emission Trading Company’s Upper

Sector Upper Limit (PT BAE) Limit (PT BAE PU)
Mechanisms and Indonesia’s
procedures Fee
Certification
Verified Emission
Emission Offsets Baseline (sector & juris)
Reduction

1. International sources to central

Result-based payments RBP guidelines government
2. International sources to
provincial governments Non-Tax Revenue
Benefit sharing 3. National to subnational (PNBP)
mechanism governments
4. Province to cities/regencies,
private, individuals
Carbon Tax
To be determined Tax Revenue Ministry of Finance
(by Ministry of Finance)

Other mechanisms as
Non-Tax Revenue
authorized by the Case by case basis
(PNBP)
Minister

Illustration source: https://lens.monash.edu/

33
Carbon Trading Regulations in Indonesia

Minister of Environment and Forestry Minister of Environment and Forestry

Regulation No. P71 / 2017 Presidential Regulation No. 98 / 2021
Regulation No. 21 / 2022
Regulate the implementation of national Economic Value of Carbon is defined as the Regulate the needs to provide a buffer from
registry system (SRN) for controlling climate value of each unit of GHG emissions generated certificate of GHG emission reduction by 30%
change. from human activities and economic activities. minimum:

Implementation is carried out within 3 stages: Governance of economic value of carbon is 0 - 5% to offset domestic GHG emission
1. Registration regulated, including transparency structure,
2. Technical validation monitoring and evaluation, and financing. Minimum of 10% until 20% to offset foreign GHG
3. Verification of actions and resources emission obligated by Nationally Determined
Detailed regulation on specific sectors and Contribution (NDC)
When validation result is successful, SRN will sub-sectors will be regulated by respective
allocate a registration number ministries Minimum of 20% to offset foreign non-NDC GHG
emission

Minister of Energy and Mineral Resources Minister of Environment and Forestry

Law No. 4 / 2023
Regulation No. 16 / 2022 Regulation No. 7 / 2023
According to Article 24 of the law, both Regulate procedures for carbon exchange in
Regulate procedures for implementing
domestic and foreign carbon trading can be forestry sector.
carbon economic value in the power
conducted through a carbon exchange
generation sub-sector Carbon exchange for Production Forest,
mechanism. However, carbon exchanges can
Protected Forest, and Peat and Mangrove within
only be operated by market operators who
Carbon economy implementation of power Forest can only be conducted by Forest
have obtained business licenses from the
generation sub-sector includes regulation on Utilization Business Permit (PBPH) holders,
Financial Services Authority (OJK). It is also
baseline GHG Emission for every type of power Social Forestry Management Approval, or
required that the carbon exchange center is
generator (set by Minister of Energy and Mineral management rights. Other Protected Forest
located within Indonesia. Further regulations
Resources) and NDC target among others. Block require Minister approval. Peat and
regarding carbon trading through carbon
Electric steam power plant is the first one to be Mangrove outside of Forest area and
exchanges will be established by the OJK
implemented (between 2023 - 2024) Conservation Forest require either Governor,
through its regulations.
Regent/Mayor, or Minister approval

34
Indonesia launched its first carbon exchange with IDX responsible for the platform.

Launch Date: September 26, 2023 Category of SPE GRK

Platform: Indonesia Stock Exchange (IDX)
Regulator: State Financial Authority (OJK)
MEF currently halt nature
based solution carbon credit
to prevent NDC double
Technology Nature Based
Key regulation Solution
counting.
Based Solution

Presidential Decree No.98/2021

Introduces a regulatory framework for the

implementation of carbon exchange.
IDX Carbon Trading Mechanism
Buyers submit bids for
desired amounts and
prices; government Price is fix, set
and regulators by buyer bids
Carbon Product Offered Auction
allocated carbon.
Related
Description
Institution
Real-time trading Price fluctuate,
Government allocate emission caps for between buyer and set by market
businesses where entities exceeding their seller based on market mechanism
Cap-and-Trade caps can purchase additional carbon units conditions.
Persetujuan Teknis Batas from those with surplus or through auctions Regular Trading
Atas Emisi - Pelaku Usaha from relevant ministry.
(PTBAE-PU) MEMR Trades agreed upon in
advance between Price is fix, set
buyer and seller by negotiated
Carbon credit certificates represent verified settled and formalized trading
emission reductions from projects and can Negotiated Trading through IDXCarbon
be traded through auctions, marketplaces,
Carbon Credit or negotiated trades via carbon exchange Seller set a fix price for
Sertifikat Pengurangan (IDX carbon). Price is fix, set
carbon and buyer can
Emisi - Gas Rumah Kaca by seller price
MEF buy based on the
(SPE-GRK)
predetermined price.
Marketplace

35
High initial transaction volumes and fluctuating demand shows Indonesia’s carbon
exchange infancy stages

Analysis period: 26 September 2023 - 19 July 2024

Cumulative Cumulative Cumulative Carbon Exchange

Trade Volume Trade Value Retirement Volume Participant

609,005 tCO2e 417,753 tCO2e 68

(equivalent to CO2 sequestered 36.80 bn IDR (equivalent to prevent burning
(dominated by listed companies
by 27,682 trees for one year) and subsidiaries and state owned
approximately 213 metric tons of coal)
enterprises)

tCO2 Trading Volume: Monthly tCO2 Volume Data Policy Highlight

Day 1 vs. Post-Day 1 until July 19 (Sep 2023- June 2024)
● 23 August 2023: OJK launch
provision regarding carbon
trading mechanism via carbon
24.5 Transaction Post Day 1
(149,052 tCO2)
exchange (POJK Bursa Karbon
● 26 September 2023: President
Joko Widodo open IDX carbon,
with transaction amount
reaching 459,953 tCO2e.
75.5
Transaction Day 1 ● 29 January 2024: Indonesia’s
(459,953 tCO2)
N/A President Regulation 14/2024
provide legal framework for Carbon
Capture, and Storage (CCS) with
the purpose of increasing country’s
T carbon offset project.

36
This is presented by limited demand on IDX Carbon due to voluntary offsetting, sector
limitation on carbon cap, and low carbon tax rate..

Voluntary offsetting Sector limitation on carbon cap Low carbon tax rate

● Current carbon regulatory regime does not ● Current carbon cap scheme limits carbon ● The carbon tax mandated by the Omnibus Tax
present mandatory carbon offsetting quota for electricity subsector, particularly to Law (UU HHP) is currently lower than the rates
mechanism. 42 coal-fired power station with upcoming available in the carbon exchange, as the tax
● Voluntary nature of carbon offsetting does not expansion to other electricity generation. rate has not yet been adjusted in the house of
present demand for emitter to buy carbon representative.
● However, subsector apart from electricity
credit from IDX carbon. does not yet have carbon cap, resulting to ● Carbon taxes are often designed to be higher or
● Areas with high compliance carbon offsetting, limited trade activity on carbon exchange. on par with the average price of carbon credits
such as EU, present a higher volume of carbon ● In addition, critics mentioned that PLN is ● When carbon tax is more affordable, demand
traded on the carbon exchange merely trading carbon within its own power for carbon on the secondary market is likely
plants, leading to the carbon remaining going to be reduced.
confined within those facilities

Benchmarking to EU ETS Carbon Current Carbon Tax and Carbon ETS price
“... since the emission trading system in Cap Sector
Indonesia is voluntary, there is little
Ratio of Carbon
incentive for company to participate in the Carbon Tax Carbon ETS
Country Tax to Carbon
Price (USD) Price (USD)
carbon exchange. Usually, company prefer ETS
to offset its carbon via their own initiative
rather than via IDX carbon” 0.4x less
1.87 3.84
expensive
Aircraft Energy Manufacturing 2x more
1.91 0.95
Carbon Analyst, expensive
Leading Carbon Trading Company
1.7x more
107.78 61.3
expensive

Source: World Bank Carbon Pricing Dashboard 37

..On top of that, unattractive carbon price, limited methodology, and lengthy approval
limits carbon offset project on IDX carbon

Unattractive carbon price Limited carbon registry methodology Lengthy approval for SPE GRK

● Unattractive carbon price have stalled carbon ● Indonesia’s registry system for carbon unit (SRN) is
● SPE GRK lengthy process stalled carbon offset
offset projects from listing on IDX carbon. seen as not accommodating carbon offset project,
project to be listed on IDX Carbon.
● As a result, many carbon offset project especially for nature based projects and niche
carbon project to obtain SPE GRK. ● Limited SPE GRK verificator also increase
developers in Indonesia adopt a wait-and-see
bottleneck in assessing current carbon offset
approach, hoping for improvements in local ● Compared to more established carbon
project.
carbon prices or aspiring to sell carbon on standardisation agency, Indonesia’s methodology
global ETS. in SRN is relatively limited ● SPE GRK verificator shortage arises since MEF
only chooses five verification agency to verify
● Yet, according to regulations, selling carbon ● For example, Verra offered 99 different
carbon offset project since 2023.
to foreign countries requires authorization methodologies of registering carbon while SRN
from the Ministry of Forestry, which is often only accommodate 49 different methodologies.
reluctant to expedite such approval.

ETS Carbon Price Comparison “Methodology to assess nature based “Apart from limited verificator, our
carbon offset project in Indonesia is process of obtaining SPE GRK involves
relatively limited [compared to other various bureaucratic delays. Ministry
USD 3.83 per tCO2 international standardisation agency],
this makes it hard for FOLU project to
that is in charge of issuing often have
limited manpower to assess our
be registered on SRN] and listed on IDX document, resulting a prolonged
carbon” process”

Carbon Analyst, Carbon Analyst,

USD 6.3 USD 12.57 USD 61.3 Leading Carbon Trading RE Company Applying SRN
per tCO2 per tCO2 per tCO2 Company

Source: World Bank Carbon Pricing Dashboard

38
If the carbon tax remains low as discussed in the previous slide, why Renewable Energy
Certificates still interesting?

What is REC? When will RECs or carbon tax work for companies?

A Renewable Energy Certificate (REC) certifies the consumption of electricity REC Carbon Tax
from renewable energy sources like solar, wind, or hydro.
● CSR: Companies with strong CSR Financial
commitments may buy RECs despite the Consideration:
higher cost to support renewable energy Companies
How does it work? and demonstrate sustainability. focused on cost
reduction will opt
● Reputation: Purchasing RECs can boost a for the carbon tax.
Produce 1 MWh company’s reputation by showing proactive
Bought by The company can claim their
electricity electricity comes from carbon footprint reduction, benefiting
translate to 1 REC renewable energy, even if it’s
in any given price branding and customer relations.
actually sourced elsewhere.
Any
Company REC for long term vs. Carbon tax for short term
Renewable energy
power plant
REC: Carbon Tax:

Impact for Indonesia ● Promotes renewable ● More effective for immediate

energy and job creation revenue generation,
● Aligns with global ● Broader compliance due to lower
commitments. cost for companies,
● Funding diverse environmental
Ideal for building sustainable
Help achieve the national Boost investment and jobs Reduce GHG emissions from energy infrastructure and showing projects.
renewable energy mix in the renewable energy the electricity sector, aligning environmental leadership.
Ideal for governments needing a simpler,
target of 23% by 2025 sector, potentially with Indonesia’s commitment
immediate solution for reducing emissions
increasing Indonesia’s GDP to a 29% emission reduction
and generating environmental project funds.
by 0.3% to 1.3% by 2030. by 2030.

Source: Masyarakat Energi Terbarukan Indonesia., 2024 39

RECs projects in Indonesia: PLN has eight projects in the pipeline with different prices
across Indonesia for RECs

The REC program are currently part of the international tracking system of APX TIGRs. The REC prices depend on the age and type
of the RE plants. In total, there are:

TOTAL PROJECT VALUE

USD 12.9
PLTP Lahendong 80 MW
(2001) - North Sulawesi million

REC Capacity: 700 GWh pa

Price: IDR 52,500 /MWh

PLTA Orya Genyem 20 MW

(2015) - Papua
PLTP Ulubelu 110 MW
REC Capacity: 6 GWh pa
(2012) - Lampung PLTA Bakaru 130 MW
PLTP Kamojang 140 MW Price: IDR 42,000 /MWh
(1991) - South Sulawesi
REC Capacity: 720 GWh pa (2012) - West Java
Price: IDR 57,750 /MWh REC Capacity: 896 GWh pa
REC Capacity: 993 GWh pa Price: IDR 35,000/MWh
Price: IDR 52,500 /MWh

PLTP Ulumbu 10 MW (2014) -

East Nusa Tenggara
PLTA Cirata 1,008 MW (1988) PLTM Lambur 8 MW
- West Java (2022) - Central Java
REC Capacity: 5 GWh pa
Price: IDR 63,000 /MWh
REC Capacity: 1,200 GWh pa REC Capacity: 30 GWh pa
Price: IDR 35,000 /MWh Price: IDR 61,250 /MWh

The REC price usually determined by many factors such as: energy type and source, market demand, quality, volume traded, and contract duration.
40
How attractive
is the carbon
market in
Indonesia
financially?
41
41
Indonesia need to increase its total supply of carbon available in the market to meet its
NDC reduction requirement

Overall Carbon Market Size

GHG NDC Reduction Requirement Mandala market estimation in $

Average annual GHG reduction requirement of Average annual market of $4.1 billion*
593.1 million metric tonnes (mmt) Total of $33.2 billion between 2023 - 2030

* assuming carbon credit price of $10 per ton

Total of 4.7 billion metric tonnes
between 2023 - 2030 Ministry of Environment and Forestry estimated the
market between 2022 - 2026 to be $25 billion, our
estimation for the same period is $18.3 billion.

Total Annual Supply Estimation of Nature-Base Carbon Offset from Forestry

Carbon potential based on Indonesia’s Forest Area

Assumptions of trees per hectare
300 trees 500 trees
Forest Area eligible for conversion 103.1 mmt 171.9 mmt
Production Forest* 134.6 mmt 224.3 mmt
Total Supply 237.7 mmt 396.2 mmt

*assuming 30% area for carbon market purposes 42

Who are
the key
stakeholders
in Indonesia?
43
43
Key Stakeholders in Indonesia (1/2)

Government
Stakeholders
Badan Pengelola Dana
Ministry of Environment and Forestry Otoritas Jasa Keuangan (OJK)
Lingkungan Hidup (BPDLH)

Responsible for formulating and A non-echelon public service agency OJK has been designated to oversee
implementing policies, regulations, and (BLU) operating under the authority and Indonesia's carbon trading platform.
programs related to environmental accountability of the Minister of Finance While the OJK's current responsibilities
conservation, including the management of of the Republic of Indonesia. BPDLH revolve around regulating and
carbon emissions and climate change serves as an environmental funding supervising the financial services sector,
Description mitigation efforts. The ministry oversees the mechanism that channels and their capability to effectively oversee
development and implementation of strategies distributes funds to support Indonesia's carbon finance as a new financial
for reducing greenhouse gas emissions, vision of environmental preservation, instrument or commodity to trade is
promoting sustainable forest management, preventing pollution and degradation. unclear. To ensure international investors,
and supporting initiatives related to carbon OJK will collaborate with experts on
trading and offsetting. carbon trading.

Establish frameworks and mechanisms for Consolidate diverse funding sources to be Setting up legal framework governing the
carbon footprint management, monitoring, utilized across various sectors (forestry, establishment and functioning of carbon
reporting, and verification. energy, mineral resources, carbon trading, specifically carbon exchange
Interest
trading, environmental services, industry,
transport, agriculture, marine, and
fisheries).

Currently developing Indonesian carbon n/a Carbon Exchange will be launch by OJK
Latest
regulation for international market. in September 2023.
Development

44
Key Stakeholders in Indonesia (2/2)

Marketplace Project Developers

Stakeholders

Fairatmos: An Indonesian climate tech Project Katingan: The project claim it annually generates 7.5 million triple
startup in December 2022 secured a $4.5 gold certified carbon credits, or equivalent to removing 2,000,000 cars from
million seed funding round, co-led by the road each year. The project utilizes carbon revenues to support the
Go-Ventures and Kreasi Terbarukan TBS, restoration and protection of natural forests.
with participation from Vertex Ventures
Southeast Asia and India. The startup offers Rimba Raya: Location of the project is Central Kalimantan where it
several products to support climate action conserve peat swamp forest (REDD+). They claim the projects avoid 130
for individuals and organizations. million tonnes of CO2e

Description ICDX: A prominent commodity exchange in CarbonX: focuses on investing in and developing a diverse array of projects
Indonesia that offers comprehensive that can be economically viable through carbon finance. CarbonX seeks to
services. They facilitate multilateral revolutionize the market and collaborate on climate actions, fostering a
commodity and derivative trading. collective effort towards a more sustainable future.
Committed to establishing a carbon trading
market that adheres to regulations and Forest Carbon: focus on restoring wetland forests. The project is located in
standards. ICDX aim to sell carbon outside of Sumatra called Sumatra Merang Peatland Project. So far it raised more than
OJK’s carbon market. ICDX do not have
5 million Euro of investment and support restoration of more than 22,000
carbon supply or stock.
hectares of forest.

45
What are the
top issues of
carbon trading
in Indonesia?
46
46
Top 3 Issues of Carbon Trading Market in Indonesia (1/2)

1. Lack of Understanding in Nature Based Carbon Potential for 2. Partnership between Indonesia’s standard (SRN) and international
Project Developer / Land Owners certification have not been established
Stakeholders in Indonesia focus on land acquisition with the aim for utilizing Cooperation between the Government of Indonesia (lead by Ministry of
them for carbon projects Environment and Forestry) and Verra needs to be established

Moderate risk: many carbon projects benefit could not be realized Different standards between Indonesia and International Certification

Evidence Reference Evidence Reference

● Many developers does not understand Minister of Environment and ● SRN is Indonesia’s local certification Minister of Environment
that receiving forest concession or Forestry Regulation No. 7 / 2023 and Forestry Regulation
● SRN recognize 48 methodologies
owning land does not necessarily Article 5 No. P. 71 / 2017
for emissions reduction, while Verra
means carbon potential can be sold in
recognize 48 project
the carbon market
Types of forest to source carbon methodologies, 53 project modules, SRN is a system management
● The status of the forest need to have trading market from forestry: 5 project tools, and 5 Jurisdictional and web based data and
“threatened” status - meaning 1. Fixed Production Forest Area, and Nested REDD+ modules and information provision about
designation of the forest converse to Converse Production Forest tools action and resources for
production forest, therefore the delta Area, Protected Forest Area with adaptation and climate change
● The lesser methodologies might
for the carbon project is established PBPH, Social Forestry mitigation in Indonesia.
build a perception that Indonesia’s
Management Approval, or
● Many project developers acquired SRN is not credible and comparable
Management Rights SRN implementation includes:
land or forest concession prior to the to international standards
2. Other protected forest areas 1. Registration
release of Perizinan Berusaha
3. Peatlands and mangrove within 2. Technical data validation
Pemanfaatan Hutan (PBPH) or other
and without Forest Area 3. Action and resources
approval requirement from Minister,
4. Conservation Forest Area verification
Governor, or Regent/Mayor
5. Customary Forest
● Obtaining land or forest concession is 6. Forest Rights
considered to be cheaper, but note on 7. State Forest that are not
the threatened status that is needed Forest Area
for recognition of carbon potential
that can be sold
47
Top 3 Issues of Carbon Trading Market in Indonesia (2/2)

3. Many carbon players investment plan outside of generator sector are put in limbo

Currently Indonesian Government is still developing the regulation for international market carbon trading

The unclear and lack of regulation regarding international trade

Evidence Reference

● Domestic and international carbon Minister of Energy Regulation No. 16 / 2022

market are on hold currently in attachment 2
Indonesia.
GHG Upper Limit Calculation for Technical Approval (TA) within Power Plant sector:
● For domestic the procedures on
implementing carbon economic value TA for Power Plant GHG Limit
TA for Business Previous Year Average
in the power generation sub-sector (PTBAE) (ton CO2e/MWh)
Stakeholders = x GHG Emission
has been established however for
GHG limit Previous Year Average GHG (ton CO2e)
other sub-sectors they are still under
(PTBAE-PU) Emission Intensity
development.
(ton CO2e/MWh)

48
 Thank you

Authors:

Kevin Samsi Rachmat Fathoni Alifian Arrazi Scan to read

our insights.
Lead Consultant Lead Consultant Associate Consultant
[email protected] [email protected] alifi[email protected]