Carbon Trading 'Interesting' Says Energy Minister Arifin Tasrif

TEMPO.CO, Jakarta - The Energy and Mineral Resources (ESDM) Minister Arifin Tasrif believed that there are interesting aspects in the implementation of carbon trading, but asserted that the government remains committed to practicing it in order to reduce greenhouse gases.

"I am not saying that it is hard, nor is it an easy task. But it is indeed interesting," said Arifin in launching the Carbon Trading in Indonesia's Power Generation Subsector that was aired from the ESDM Ministry’s Youtube channel on Wednesday, February 22, 2023. 

In the midst of rising inflation and energy prices, this policy needs to be ensured and implemented in a fair, effective, and integrated manner between climate policy and social policy, Arifin asserted.

Arifin explained that setting carbon pricing is one of the policies that can improve energy efficiency and also reduces dependence on carbon energy and imported energy. The Minister also acknowledged carbon pricing as a potential source of income for companies and the government.

The 2022 World Bank report he cited suggests global revenue from carbon pricing had increased by almost 60 percent compared to 2021, which amounts to around US$ 84 billion.

In a later phase of the carbon trading practice, he explained that the government will also subject fossil energy power plants, such as coal-fired power plants. Including those that provide electricity outside the PLN business area.

RIRI RAHAYU

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