Update on the Regulation of the Minister on Carbon Trading in the Energy Sector

The Ministry of Energy and Mineral Resources (“ESDM”) is continuing discussions on the Draft Regulation of the Minister on Carbon Trading through Greenhouse Gas (“GHG”) Emission Offsets in the Energy Sector. Director-General of New and Renewable Energy and Energy Conservation Eniya Listiani Dewi stated that the regulation is currently undergoing public consultation.

“This Regulation has just been drafted. I am currently coordinating with the Director-General of Oil and Gas and the Director-General of Electricity,” said Eniya.

Eniya explained that the regulation governs the issuance of carbon units, carbon trading mechanisms, validation and verification, domestic and international carbon trading, as well as reporting and the governance of the carbon registry. It also covers carbon trading in the power generation, oil and gas, transportation, building, industrial, and energy use subsectors.

Regarding the calculation schemes for each sector, Eniya noted that these will be discussed further during the drafting process. However, she confirmed that once regulated, the results of carbon calculations will belong to the developers in each sector.