Pertamina Aims For Dominance in Emerging Indonesian Carbon Market
Pertamina, Indonesia’s state-owned energy company, is setting its sights on becoming a major player in the country’s emergent carbon trading market. With Indonesia’s first carbon exchange now operational, Pertamina is banking on its expansive involvement in the energy sector to make a significant impact.
The company’s president, Nicke Widyawati, has noted that Pertamina’s engagement in all stages of energy production and distribution has played a vital role in the establishment of Indonesia’s carbon trading scene. Already, the company has made strides in the implementation of carbon capture storage (CCS) and carbon capture utilization and storage (CCUS) technologies in its upstream subholding. These advancements have not only contributed to increased oil and gas production but also set the stage for the company’s foray into carbon trading.
Pertamina Subholdings to Spearhead Carbon Trading Endeavours
The Pertamina New & Renewable Energy (PNRE) subholding has been tasked to act as the company’s chief trader in the carbon market. PNRE boasts a certified supply of carbon credits which it is prepared to trade, thereby positioning it as a significant player in the burgeoning market. Meanwhile, Pertamina’s commercial and trading subholding, Pertamina Patra Niaga, is also participating in carbon trading by exploring business opportunities with potential customers.
Widyawati has expressed confidence in PNRE’s capabilities, stating that the subholding is set to make substantial waves within the carbon trading market. This initiative ties in with Pertamina’s broader commitment to supporting Indonesia’s goal of achieving net-zero emissions by 2060.
Pertamina’s Decarbonization Commitment
Pertamina’s foray into carbon trading is part of its broader strategy to align with sustainable development goals (SDGs) and incorporate environmental, social, and governance principles within its operations. This commitment is central to the company’s support for Indonesia’s 2060 net-zero emissions target.
Decarbonization initiatives are being implemented throughout the Pertamina Group. One such initiative involves carbon trading, which presents a promising avenue for the realization of the company’s sustainability objectives. By actively trading in carbon credits, Pertamina aims to offset emissions arising from its operations and contribute to the broader goal of emissions reduction.
Indonesia’s First Carbon Exchange
Indonesia’s President, Jokowi, recently launched the Indonesia Carbon Exchange (IDX Carbon), marking a significant milestone for the nation’s green economy. The President estimates the exchange to hold potential worth Rp 3,000 trillion and believes it will pave the way for new green economic opportunities.
Jokowi emphasized the importance of aligning IDX Carbon’s operations with international standards and leveraging technology for efficient transactions. The exchange is expected to cater to both domestic and international markets and will regulate and facilitate the voluntary carbon market in line with global practices. The President maintained that adherence to international standards should not hinder the country’s independent climate targets.
Indonesia’s Carbon Trading Future
With the establishment of IDX Carbon and Pertamina’s aggressive move into the carbon trading market, Indonesia is positioning itself as a significant player in the global carbon market. The country’s efforts align with the global push towards sustainable development and green economies, and Pertamina’s involvement is a testament to the potential of state-owned enterprises in driving this transition.
Subscribe to BNN Breaking
Sign up for our daily newsletter covering global breaking news around the world.