[PERPRES 98 Tahun 2021] – Presidential Regulation on Carbon Emission Economic Value
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ESG Update: Indonesia has passed a long-awaited regulation regarding carbon emission and carbon trading mechanism
The President of Indonesia has issued Presidential Regulation No. 98 of 2021 (Perpres 98 Tahun 2021) regarding the Implementation of Carbon Economic Value for Achieving Nationally Determined Contribution Targets and Control of Greenhouse Gas Emissions in National Development (“PR 98/2021”) on 29 October 2021. PR 98/2021 was signed by President Joko Widodo before he left for Glasgow to attend the 2021 United Nations Climate Change Conference (COP 26).
PR 98/2021 has become the game-changer for climate change policies in Indonesia, especially in the Government’s effort to manage carbon trading mechanisms and create a sustainable green economy. PR 98/2021 is one of the important legal bases for the Government’s efforts to achieve Indonesia’s Nationally Determined Contribution (“NDC”), which is 29% independently and 41% with international cooperation by 2030.
PR 98/2021 introduces specific mechanisms to implement the Carbon Economic Value, including (i) carbon trading, (ii) result-based payment, and (iii) carbon levies.
Please see our Update regarding this regulation in English (here) and Bahasa Indonesia (here).
ESG Update: Peraturan terkait Emisi Karbon dan Perdagangan Karbon di Indonesia
Presiden Republik Indonesia telah menerbitkan Peraturan Presiden No. 98 Tahun 2021 tentang Penyelenggaraan Nilai Ekonomi Karbon untuk Pencapaian Target Kontribusi yang Ditetapkan secara Nasional dan Pengendalian Emisi Gas Rumah Kaca dalam Pembangunan Nasional (“Perpres 98/2021”) pada tanggal 29 Oktober 2021. Perpres 98/2021 telah ditandatangani oleh Presiden Joko Widodo sebelum Beliau menuju Glasgow untuk menghadiri 2021 United Nations Climate Change Conference (COP 26).
Perpres 98/2021 ini merupakan game changer bagi sektor kebijakan climate change di Indonesia terutama dalam upaya Pemerintah untuk mengelola mekanisme perdagangan karbon dan menciptakan sustainable green economy. Perpres 98/2021 merupakan salah satu landasan yang sangat penting bagi upaya pemerintah untuk mencapai target Nationally Determined Contribution (“NDC”) Indonesia yaitu sebesar 29% dengan usaha sendiri dan 41% dengan kerja sama internasional pada tahun 2030.
Perpres 98/2021 mengatur penyelenggaraan Nilai Ekonomi Karbon melalui (i) mekanisme perdagangan karbon, (ii) pembayaran berbasis kinerja, (iii) pungutan atas karbon.
Mohon untuk melihat Update kami atas peraturan ini dalam Bahasa Inggris (di sini) dan dalam Bahasa Indonesia (di sini).
Disclaimer:
This client update is the property of ARMA Law and intended for providing general information and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. ARMA Law has no intention to provide a specific legal advice with regard to this client update.
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