The Ministry of Energy and Mineral Resources (KESDM) identifies new business opportunities in the Energy and Mineral Resources sector through emission reduction efforts, particularly carbon trading. Secretary-General of the Ministry of Energy and Mineral Resources, Dadan Kusdiana, explained that the drive for emission reduction essentially creates a market, emphasizing a market-oriented approach. The demand comes from entities obligated to reduce emissions, while the supply involves contributors to emission reduction known as carbon credits. Carbon trading involves the exchange of carbon emission permits with the aim of reducing greenhouse gas (GHG) emissions. Each tradable carbon credit is equivalent to the reduction of one ton of carbon dioxide emissions. In February 2023, the Ministry of Energy and Mineral Resources launched carbon trading in the power generation subsector, involving 99 power plants with a total capacity of 33.5 gigawatts for the initial phase in 2023. Dadan mentioned the active participation in buying and selling within this market. Although the progress is not as rapid as initially expected, a gradual approach is beneficial to ensure price maturity. Early stability prevents sudden price surges, allowing for more mature pricing dynamics.
During the discussion, Dadan touched upon the variations in CO2 emissions from power plants, emphasizing that each power plant emits different volumes of CO2. This variance depends on factors such as technology, capacity, and the quality of the coal used. The government has set emission targets, such as 1,050 grams of CO2 per kWh for power plants in 2023. This standard is applied uniformly to manage emissions from different plants. Apart from carbon trading, Dadan highlighted additional business opportunities through the development of renewable energy. Referencing the Electricity Supply Business Plan (RUPTL), the development of renewable energy is projected to attract approximately USD 55.18 billion in total investments, create 281,566 new jobs, and reduce GHG emissions by 89 million tons of CO2e. Furthermore, new business opportunities are anticipated through the implementation of carbon capture utilization storage (CCUS) technology. Dadan explained that CO2 captured, for instance, from power plants, can be stored underground permanently. This introduces the possibility of businesses involved in carbon capture and storage, considering Indonesia's substantial potential for carbon storage, estimated at 500 gigatons of CO2. In summary, these initiatives showcase the multifaceted approach Indonesia is taking to address emissions, providing diverse opportunities for businesses and contributing to global environmental goals.
