PLN creates instrument to support carbon trading

Jakarta (ANTARA) – State-owned electricity company, PLN, initiated the PLN Climate Click platform as an instrument to support carbon trading between power plants in Indonesia.Through the PLN Climate Click, developments and decarbonization steps being carried out by PLN can be monitored regularly. President Director of PLN Darmawan Prasodjo, in a statement received in Jakarta, Friday, explained that carbon trading has become a trend on the global stage, and to this end, Indonesia has also initiated this as an effort to reduce and control carbon emissions that can be monitored directly. “The launch of the PLN Climate Click application is a form of PLN’s commitment to supporting the government’s program in achieving Nationally Determined Contribution (NDC) by 2030 and achieving net zero emissions (NZE) by 2060,” Prasodjo remarked. The platform — PLN Climate Click — that has been running effectively since Friday (Sept 8) is expected to become a forum for the public to directly monitor the decarbonization process at PLN. Prasodjo noted that PLN Climate Click is also expected to serve as a medium to utilize technology as tools in the efforts to adapt to climate change and also reduce its negative impacts. “By using digital technology to collect and analyze data, it is hoped that we can take better, more precise, faster, and more effective decisions and actions,” he stated. PLN remarked that the innovation conducted was also part of PLN’s commitment to supporting efforts to deal with climate change, the impact of which is already starting to be felt. The application is a form of strengthening PLN’s climate change governance. Meanwhile, Director of Transmission and System Planning of PLN Evy Haryadi explained that the application will also provide data in the form of inventory of greenhouse gas (GHG) emissions for scope one (direct emission), scope two (electricity and other indirect energy emission), and scope three (indirect emission). Moreover, data will be available on trading emissions and carbon offsets, climate change mitigation actions, and climate change adaptation actions within the PLN Group. Haryadi explained that in implementing carbon trading, PLN is guided by regulations for implementing the economic value of carbon (NEK), and currently, PLN has at least five corporate entities that play a role in implementing NEK as part of the company’s business development. The five entities comprise PT PLN Indonesia Power (IP) and PT PLN Nusantara Power (NP) that act as carbon trading actors, PT PLN Icon Plus as the provider and developer of the carbon trading platform, PT Energy Management Indonesia (EMI) as the carbon trading management office, and the PLN Certification Center (Pusertif) as a validation and verification institution. Meanwhile, Deputy for Environmental and Forestry Coordination of the Coordinating Ministry for Maritime Affairs and Investment Nani Hendiarti stated that the NEK was implemented to support the achievement of the NDC target. Carbon trading is not only carried out domestically but also abroad. “For this reason, it is necessary to develop a foreign carbon trading scheme that can accommodate mandatory markets and voluntary markets in an effort to encourage the mobilization of international funding for climate mitigation. Furthermore, it is hoped that PLN can become the main supplier of carbon offsets from EBT (new renewable energy) plants,” Hendiarti stated. Meanwhile, Head of the Fiscal Policy Agency of the Ministry of Finance, Febrio Kacaribu, remarked that the step taken by PLN by launching the PLN Climate Click application was also a collective and collaborative effort to deal with climate change. “This also received a positive response, where PLN will later be able to act as a supply management office for carbon trading in the energy sector,” he stated.

Source: Antara News Agency

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September 2023