Ministry of ESDM Prepares Carbon Governance Rules

The Ministry of Energy and Mineral Resources (“ESDM”) is currently drafting a Regulation of the Minister of Energy and Mineral Resources on Carbon Management in the Energy Sector. This regulation is being prepared as a derivative regulation of Regulation of the President No. 110 of 2025 (“Regulation 110/2025”) on the Organization of Carbon Economic Value Instruments and National Greenhouse Gas (“GRK”) Emission Control.

The Director-General of New, Renewable Energy and Energy Conservation (“EBTKE”) of the Ministry of ESDM, Eniya Listiani Dewi, said that the regulation will serve as the basis for carbon management in the energy sector.

"After Regulation 110/2025 on Carbon, we are preparing a draft Regulation on carbon management in the energy sector," said Eniya.

Furthermore, Eniya explained that the regulation will govern the mechanism for calculating emission reductions from activities in the energy sector. This regulation will include, among other things, Carbon Capture and Storage (“CCS”) activities in the oil and gas sector, the calculation of emission reductions from the use of biodiesel by industry, and the use of new and renewable energy (“EBT”) such as the adoption of solar panels in the mining sector.