Investor Presentaiton
CARBON TAX ROAD MAP AND
CARBON TAX - CARBON TRADE IMPLEMENTATION SCHEME
Carbon Tax Roadmap
2021:
•
Discussion and determination of the HPP Law, one of the
provisions is the carbon tax
•
Finalization of the Presidential Regulation on Carbon Economic
Value
Carbon Tax – Carbon Trade Scheme
Cap and Trade
Cap and tax
SIE/
SPE
Development of technical mechanism for Carbon Tax and Carbon
Exchange
Emission
Deficit
Cap
SIE/
Carbon trading piloting in the power sector by the Ministry of
Energy and Mineral Resources at an average price
Rp30.000/tCO2e
SPE
SIE/
SPE
}
Carbon Tax
SIE/
SPE
•
2022:
Determination of the cap for the coal power generation sector
by the Ministry of Energy and Mineral Resources
• As of 1 April 2022, implementation of carbon tax (cap & tax)
limited to coal powerplant at Rp30.000/tCO2e
2025:
• Full implementation of carbon trading through carbon exchange
Expansion of the carbon tax taxation sector in stages according
to sector readiness
Determination of implementing regulations for carbon tax
management (cap & tax) for other sectors
Emission
Surplus
Trading
SIE/SPE
A
B
Entities emitting more than the
cap are required to purchase an
emission permit (SIE) from
entities that emit under the cap
or purchase an emission
reduction certificate (SPE/carbon
offset)
Trading
SIE/SPE
A
C
In the event that the entity is
unable to purchase an emission
permit (SIE) or emission
reduction certificate (SPE) for
emissions above the full cap
then the remaining emissions.
will be subject to carbon tax
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