Emerging Indonesian Emission Trading System and its potential international linkage l Encep Amir

Field l Discipline

• Environmental Sciences
• Energy Management
• Climate Policy

Expertise

• Energy Attribute
• Emission Trading

Summary

As committed in the latest Indonesian Government’s National Determined Contributions (NDCs) to reduce Green House Gases (GHGs) emissions as much as 31.89 percent of those emitted in the business as usual (BAU) scenario by 2030 (915 Mton CO2e) through domestic actions and - 43.20

percent (1240 Mton CO2e) in support from international parties- all necessary efforts are being deployed. In various magnitudes, the responsibility shared between 5 major contributing sectors, including energy sector as the second largest GHG emitter. To provide a financial supporting mechanism to adopt “polluter pay principle” in the energy sector, an emission trading platform with the electricity sector as the first participant (which later expands to a broader range) has been recently established with the carbon tax currently following under development.

In this light, Indonesian Emission Trading System (ETS) has its unique potential for global climate action in the near future. As climate agreements and Indonesian NDCs stressed international collaboration, the studies of international linkage to Indonesian ETS are a great subject of interest. The proposed research project will be concentrated on the cost-benefit of the possible linkage in the future with one of them, the European Union ETS, and furthermore, conduct a market gap analysis to generate a reality check and recommendations for improvement.

This project is also a collaboration between IREES (Integrated Research on Energy, Environment and Society) research group and PT PLN Persero, the Indonesian government-owned electricity company.

Supervision by

• Prof. Dr. Klaus Hubacek| Integrated Research on Energy, Environment and Society - IREES | ESRIG, University of Groningen.
• Dr. Franco Ruzzenenti| Integrated Research on Energy, Environment and Society - IREES | ESRIG, University of Groningen.

More information and contact details can be found on the personal profile of Amir Encep