Indonesia plans to specify a cap for carbon emissions and to impose a carbon duty on the power generation industry, particularly coal-fired power plants, from July this year to 2024, according to media reports. The coal-fired power plants producing emissions higher than the upper cap will be subject to additional costs. In 2025, the duty will be expanded to other industries.
The amount of the duty was agreed at the rate of IDR 30,000/kg ($20.21/kg), SteelOrbis understands.
The duty, which was initially planned to be implemented in April this year, was delayed by the government for three months as the technical regulations were being prepared.