ESDM Encourages Cross-Border Carbon Storage Regulation

The Ministry of Energy and Mineral Resources (“ESDM”) emphasizes the importance of regulating cross-border carbon storage across sectors and at the international level.

Secretary-General of the Ministry of Energy and Mineral Resources, Dadan Kusdiana, explained that after the issuance of Presidential Regulation No. 14 of 2024 on the Implementation of Carbon Capture and Storage Activities (Perpres 14/2024), there are no further regulations regarding cross-border carbon storage implementation.

"We accommodate this similarly to the technical storage of oil and gas. Oil and gas also have other export-import regulations," he stated.

Dadan hopes that the clarity of these provisions will be followed by several international agreements on cross-border carbon storage. According to him, due to the high risks involved in cross-border carbon transportation, strict regulations are necessary to manage potential hazards not only during transportation but also regarding the responsibility of post-storage monitoring.

"I see that this isn't just about B2B, but also G2G (government-to-government). G2G agreements should come first to outline how the risks will be managed," he explained.