Jabar Ekspres – The governments of Indonesia and the UK signed the UK Partnering for Accelerated Climate Transitions (UK PACT) Carbon Pricing Implementing Arrangement (IA) to support the development and coordination of carbon pricing policies.
Through the signing of the agreement witnessed by Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan and British Ambassador to Indonesia Owen Jenkins in Jakarta on Monday, the UK committed 2.7 million pounds (equivalent to Rp52.2 billion) to provide technical assistance to support the development and coordination of carbon pricing policies.
“Many tools and strategies are used to mitigate climate change and reduce greenhouse gas emissions, including carbon pricing. Various countries have adopted and implemented these tools to encourage the transition to more sustainable and low-carbon practices,” he said.
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Luhut said the Indonesian Government realizes that the country needs support and collaborations with other parties to achieve ambitious targets.
Therefore, Indonesia and the UK recognize the importance of partnerships to address global challenges related to climate change, and agreed to sign this MoU on UK PACT.
The Indonesian government has started the foundation of carbon pricing by enacting a Presidential Regulation on Carbon Economic Value. In addition, the Ministry of Energy and Mineral Resources (ESDM) issued a Ministerial Regulation on the Governance of Carbon Economic Value in the Power Plant Sub-Sector.
Meanwhile, other complementary instruments, such as the Sectoral Carbon Pricing Roadmap, Carbon Exchange regulation, International Carbon Trading regulation, and Online GHG Emission Reduction Inventory, are simultaneously being developed.
“We plan to launch carbon trading in September 2023, as part of efforts to increase the use of renewable energy and achieve net-zero emissions by 2060 or sooner,” he said.
Through UK PACT, the UK has committed 2.7 million pounds (equivalent to Rp52.2 billion) for technical assistance to support the development and coordination of carbon pricing policies. The program will support the Ministry of Communications and Industry in chairing Indonesia’s Carbon Pricing Steering Committee, and will also support the Ministry of Finance in designing a carbon tax.
