ESDM ministry initiates carbon trading to reduce greenhouse gas emissions
This step is intended to support the goal of reducing CO2 or greenhouse gas emissions in the energy sector by 314-398 million tons by 2030.
Jakarta (ANTARA) – The Ministry of Energy and Natural Resources (ESDM) has launched the carbon limitation and trading system in the electricity subsector to reduce greenhouse gas emissions from electric steam power plants.
“This move aims to support the goal of reducing carbon or greenhouse gas emissions in the energy sector by 314-398 million tons in 2030,” noted the Ministry’s Director General of Electricity Rida Mulyana in a statement cited here on Saturday.
The CO2 test will employ the principle of cap, trade and offset, which limits the CO2 emissions produced by any coal-fired power plant, he noted.
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Companies that emit more than the set cap are required to buy an emission allowance or an emission reduction certificate from companies that emit below the cap, he said.
“If the company cannot obtain an emission permit or emission reduction certificate for emissions above the cap, a carbon tax is levied on the rest of the emissions,” he said.
The future development of electricity, especially in power plants, will increasingly shift to the use of environmentally friendly resources and technologies, said the General Director.
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This is being done as the state electricity company PT PLN (Persero) and the government take a step towards carbon neutrality.
Several efforts have been made to reduce greenhouse gas emissions and support the renewable energy mix goal, Mulyana noted.
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These efforts include using biomass co-fired technology in PLN-owned electric steam power plants, converting diesel power plants to renewable power plants, and implementing energy efficiency and conservation, he said.
The biomass co-fired technology is used at an average of 10 percent for power plants in Java-Bali and 20 percent for power plants outside Java-Bali, with a capacity factor of 70 percent, he said.
This is to achieve the target of 23 percent of the renewable energy mix by 2025.
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