As the climate crisis becomes more apparent, businesses are taking a critical role in implementing strategies to help Indonesia achieve its net-zero emissions commitment by 2060 or sooner.
. The GBR identify “green bonds” as debt securities to finance or refinance part or all of an environmentally sound business activity, including activities relating to renewable energy and eco-efficient products.
This is partly because investment in green bonds generates environmental benefits and, at the same time, such investment needs to satisfy the OJK’s stringent sustainable finance requirements.
However, under the National Energy Policy, the country aims to reduce its dependence on fossil fuels and develop cleaner energy sources.
Recent media reports indicate that, as of the publication date of this article, the government is already revising the RSR, which are now on hold.
Indonesia soon will have the largest solar power plant in Southeast Asia and the first floating solar power plant.
, companies wishing to engage in the EV industry must obtain appropriate business licences, build a manufacturing facility in Indonesia, and fulfil the local content requirements.
An Indonesian company spearheading the use of EV technology for all their business lines is the ride-hailing decacorn, Gojek, through its joint venture called Electrum.
Carbon pricing is a tool for the government to regulate the objective costs of greenhouse gas emission units generated by human and economic activity.
A greenhouse gas emissions offset scheme, which applies to businesses without a determined cap.
One of the pioneer projects for emissions offseting is the Katingan Mentaya project, owned by Rimba Makmur Utama .
Carbon levies may be imposed in the form of taxes, duties and customs fees, or other state-imposed levies based on carbon content, carbon emission potential, emitted carbon amounts, and/or climate change mitigation actions.
Aligning to climate science is one of the best choices companies can make to increase their competitiveness and achieve net-zero emissions, including investing in greener projects, adopting renewable energy solutions, and offsetting emissions.
Given the environmental and regulatory significance of emissions reduction, businesses are encouraged to anticipate and account for climate-related legal risks and greenhouse gas mitigation strategies.