Jakarta (Indonesia Window) – The Indonesian Ministry of Energy and Mineral Resources has noted that the power generation sector in the country was able to cut 10.37 million tons of carbon emissions throughout 2021.

The reduction in carbon emissions from power plants reached 210.37 percent from the target set last year of 4.92 million tons, according to the Director General of Electricity at the Ministry of Energy and Mineral Resources, Rida Mulyana, at a press conference here on Tuesday (Jan. 18).

In 2020 the ministry targeted a reduction in carbon emissions in the power generation sector of 4.71 million tons. The realization reached 8.78 million tons or 186 percent of the target.

In 2022, the Ministry of Energy and Mineral Resources expects to decrease carbon emissions in power plants by 5.36 million tons.

In order to reduce carbon emissions, the government is committed to promoting the energy transition towards carbon neutrality by 2060 or sooner.

In preparation for the mandatory phase in 2025, last year the ministry conducted a carbon trading trial for coal-fired power plants on a voluntary basis.

In addition, the government will implement a carbon tax in stages between 2021 and 2025 by taking into account the development of the carbon market, the achievement of the Nationally Determined Contributions (NDC) target, and economic conditions.

On April 1, 2022, the carbon tax (cap and tax) will begin to be applied in a limited way on coal-fired steam power plants at a rate of 30 thousand rupiahs (about 2.09 U.S. dollars) per ton of carbon dioxide equivalent.

Reporting by Indonesia Window