Indonesia aims to issue emission quotas for some coal-fired power plants by the end of January, as a first step towards creating a mechanism for domestic carbon trading. The country is among the world’s biggest greenhouse gas emitters, but has set a more ambitious target for reducing carbon emissions – by 31.89% on its own or by 43.2% with international support, by 2030. That exceeds its 2015 Paris Agreement pledge to cut emissions by 29%, or 41% with international help.
The first phase of carbon trading will cover coal power plants with a minimum 100 megawatt capacity that are directly connected to power grids owned by state utility Perusahaan Listrik Negara, according to a senior ministry official. There are 99 coal plants with combined installed capacity of 33.6 gigawatts that may join the carbon trade this year.
Power plants whose carbon emissions are below their quota can trade their remaining allotment with plants whose emissions exceed their quota. Indonesia allows direct carbon trading among emitters and authorities plan to launch a carbon exchange this year, but are yet to set up agencies that can monitor and validate emissions.
(Article attributed: WEF)
