Indonesia's COVID-19 Vaccination and Economic Resilience Strategy
Carbon Pricing or Carbon Economic Value (NEK) is a part of a
comprehensive policy package for climate change mitigation
Emission Trading System
First Period
Entity A
and Entity
B have the
same
allocation
at the
beginning
of the
period
Gra
DY
anak
Emission
MN Allocation
Certificate
Emission
Obtained
01.
Trading instruments, consists of 2 types:
a. Emission Trading System (ETS) an entity that emits more buys emission
permit from other entities that emits less
b. Crediting Mechanism: entities undertaking emission reduction activities
can sell their carbon credits to other entities requiring carbon credits
Emission
Offset
02.
Non-trading instruments, consists of 2 types:
B
C
Emission Reduction
Certificate
Initial
Emission
Final
Emission
Emission Obtained
End of Period
A
A has an
allocation
surplus that
can be sold
to B
B
Eva Emal
B is a business
entity that is
subject to a cap
C is a business
entity that is not
subject to a cap
a. Carbon tax, imposed on carbon content or carbon emitting activity
b. Result Based Payment (RBP): payment is given as a result of emission
reduction
Carbon Tax
Carbon Content
GRK Emitting
Activities
Result-Based
Payment
Non-Trading
No carbon rights transfer
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