Implementation of CBAM Industry will Conduct MRA with the European Union

The implementation of the Carbon Border Adjustment Mechanism (“CBAM”) is required by the European Union in the industrial sector. This policy is considered an opportunity and a challenge for Indonesian products targeting international markets, especially Europe.

“There needs to be a Mutual Recognition Arrangement (“MRA”) with the European Union regarding the implementation of CBAM,” said Rizka Tri Wardhani, Advisor to the Green Industry Center at the Ministry of Industry (Regulation).

According to her, this step is expected to recognize Indonesian Green Industry Standards, so that companies that have obtained this certification can have their products recognized as low-carbon and environmentally friendly. This recognition will help industry players meet their obligation to pay carbon prices on products exported to the European Union.

In addition, she highlighted the urgency of preparing a domestic Carbon Trading System that is equivalent to the European Union’s carbon trading mechanism. This equivalence is expected to give Indonesian industries better competitiveness in the global market.