It was postponed several times, finally the Carbon Tax will come into effect in 2025.
This was stated by the Coordinating Minister for Economic Affairs Airlangga Hartarto that carbon trading including carbon taxes will be implemented in 2025. “One of the things that will be implemented at the beginning is carbon trading and carbon taxes which are targeted to function in 2025,” said Airlangga at the opening of the Capital Market. Summit & Expo 2022 which was seen virtual, Thursday (13/10/2022) yesterday.
Airlangga said the mechanism was the government’s commitment to achieve the net zero emission (NZE) target in 2060 or earlier and became a certainty after previously being postponed several times without certainty.
Airlangga explained that carbon trading is a mechanism for buying and selling carbon and emission certificates as securities that can be traded on the carbon exchange. Meanwhile, the carbon tax becomes a disincentive for the use of dirty or non-renewable energy. Use of funds from carbon taxes to encourage the development and utilization of clean or renewable energy.
In addition to trade and carbon taxes, other policies implemented by the government to support the transition to a green economy are the acquisition of clean energy, regulations regarding early retirement of coal-fired power plants, and conversion of dirty energy sources.
Meanwhile, according to EGINDO.co’s records based on Law Number 7 of 2021 concerning the Harmonization of Tax Regulations (UU HPP), the carbon tax should take effect April 1, 2022. However, its implementation was postponed several times due to considering the global and domestic economic situation.
Source: EGINDO.Co