ARMA Update

The Development of the Indonesian Carbon Market after Presidential Regulation No. 98 of 2021: What’s Next?

 

Presidential Regulation No. 98 of 2021 concerning the Implementation of Carbon Economic Value for Achieving Nationally Determined Contribution Targets and Control of Greenhouse Gas Emissions in National Development (“PR 98/2021”) was issued the past year to reduce greenhouse gasses (“GHG”) and achieve Indonesia’s Nationally Determined Contribution (“NDC”). The regulation also stipulates the implementation of carbon economic value (nilai ekonomi karbon or “NEK”) and introduces specific mechanisms to implement NEK in order to achieve NDC such as carbon trading, result-based payment, and carbon levies.

Previously, we have highlighted the key points of PR 98/2021 in this ARMA Update. However, further technical provisions for the actual practice of carbon trading and result-based payment have yet to be addressed in the implementing regulation. This ARMA Update will address the aspects that need to be regulated in the Minister of Environment and Forestry implementing regulation.

Please see our Update regarding this regulation in English (here).

 

Perkembangan Pasar Karbon Indonesia Pasca Perpres 98 Tahun 2021: Apa Selanjutnya?

Peraturan Presiden Nomor 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 Tahun 2021”) diterbitkan tahun lalu dalam upaya pengurangan gas rumah kaca (“GRK”) dan mencapai Nationally Determined Contribution (“NDC”) Indonesia. Peraturan tersebut juga mengatur penerapan nilai ekonomi karbon (“NEK”) dan memperkenalkan mekanisme khusus untuk menerapkan NEK dalam rangka mencapai NDC seperti perdagangan karbon, pembayaran berbasis kinerja, dan pungutan atas karbon.

Sebelumnya, kami telah menyoroti poin-poin utama PR 98/2021 dalam ARMA Update ini. Namun, ketentuan teknis lebih lanjut untuk praktik aktual perdagangan karbon dan pembayaran berbasis kinerja belum diatur dalam peraturan pelaksana. Update ARMA ini akan membahas aspek-aspek yang perlu diatur dalam peraturan pelaksanaan Menteri Lingkungan Hidup dan Kehutanan.

Mohon untuk melihat Update kami atas peraturan ini dalam Bahasa Inggris (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.

Date:
July 13, 2022
Category:

Publications Category

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