FGD MARKET BASED INSTRUMEN (MBI) WORKING GROUP AND OPTIONAL RESEARCH ON MBI

MONITORING REPORTING AND VERIFICATION (MRV) GHG EMISSION SCHEME DEVELOPMENT

Training on Calculation of GHG Emission and

Baseline Emission Development for Industry Sector

Preparation of MRV Guidelines for Industry 

Site Visit to Power Plant   

Site Visit to Industry Sector  

PREPARATION OF GHG EMISSION ON PROFILING ACTIVITY FOR ENERGY INTENSIVE 

In This Edition : 

PMR Project Management Unit (PMU) Menara Ravindo  12 fl., Jl. Kebon Sirih Raya No. 75  Center of Jakarta T. +62 21 39831804 F. +62 21 3908598 www.pmr-indonesia.org

Our Office :

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PREPARATION OF GHG EMISSION ON PROFILING ACTIVITY FOR ENERGY INTENSIVE

Mr. Teddy C. Sianturi, Head of Research and Development Center for

Green and Environment Industry (Kapusbang IHLH), Ministry of Industry:

Integration of online GHG system with SIINAS is expected to support

industrial parties in the preparation of grk emission profile and reporting

of industrial emission data to the government.

Dr. Ir. Lintong Sopandi Hutahaean, M. Che, as the Director of Non Metal

Metal Material Industry: The purpose of this activity is to establish and

update data in order to prepare the industry for MRV activities. This

meeting is expected to provide input on what can be developed especially

regarding the development of market-based instruments (MBI) for

industries in Indonesia. The results of this study will serve as the basis for

the implementation of MRV activities, where the MRV pilot project will be

piloted in ready-made industries such as industry, fertilizer, cement, pulp

and paper, as well as preparing a marketable picture for industries in

Indonesia.

Mr. Dida Gardera as Deputy Assistant for Environmental Conservation,

Coordinating Ministry of Economic Affairs: Some industries have been

more advanced in terms of implementation of GHG emission inventory

activities such as Cement, Fertilizer, Pulp and Paper industries, so that

the readiness is expected to be a learning material for other industries.

PMR Indonesia together with the Ministry of Industry is conducting a profile development and baseline GHG emissions assessment for 8 industry sub- sectors. Several meetings with industry and industry associations for the fertilizer, textile and cement sub-sector were implemented in January - February 2018.

GHG emission inventory is one of the main databases in the preparation of emission profile. It is therefore necessary to have an understanding of the correct procedures for calculating GHG emissions through emission counting training activities which are expected to provide capacity building to the industry on the procedures for calculating GHG emissions that will be reported through SIINAS, which is in accordance with the mandate of Law no. 3 year 2014 on Industry.

SIINAS itself is a National Industrial Information System developed by the Ministry of Industry that functions as a data reporting channel to the government on a national scale. In addition, the Ministry of Industry has developed a national GHG Emission monitoring information system (SIM- Online), which is now integrated with SIINAS.

The profile development review is expected to be completed by May 2018, and can provide data and information regarding the estimated potential GHG emission reductions and costs in each sub-sector. Profile reviews and GHG emission reductions can benefit industry sectors including 1) Identify technology options with rapid return of investment with cost savings gained, 2) Assist industries in compliance with Green Industry and PROPER requirements, and 3) Opportunities to provide recommendations on future government policy. Several meetings have been held with several directorates within the Ministry of Industry (technical directorate as industrial elder member, Research Center and Development of Green Industry and Environment , Research Center and Data and Information Center), industry associations including Indonesian Fertilizer Producers Association (APPI), Indonesian Cement Association (ASI), and Indonesian Textile Association (API ) and Industry Center. For fertilizer and cement sub-sectors, an update of GHG emission inventory data for 2015 and 2016 and 2017 (fertilizers), and GHG baseline emission calculations has been prepared. For the textile industry sub-sector, data collection is still in progress.

PMR Indonesia Signified Focus Group Discussion Finalization of Baseline Greenhouse Gases (GHG) Emission for Industry Sector

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GHG Emission Source and Calculation

GHG emission sources in the fertilizer industry sub-sector (ammonia and urea production) are divided into 2 categories, namely energy emission source and IPPU. Emissions from waste can be ignored because the emissions from the waste produced are insignificant. The calculated sources of emissions are evaluated from energy (direct energy e.g natural gas, coal and ADO, as well as indirect examples of imported steam, electricity imports) and IPPU (excluding lubricating oil, as use of the same is not significant). The amount of fertilizer industry calculated in the study is based on operation of the industry since before the baseline year to the inception of the fertilizer industry development plan, and up to the year 2030. Data collection has been done by updating the data for the years 2016 and 2017, as well as the data concerning mitigation activities and long-term company plans up to the year 2030.

In the textile industry sub-sector, GHG emission sources to be calculated are, among others, emissions from the energy sector, process (IPPU), and industrial wastewater. The textile sector GHG emission calculation will use the method according to the 2006 IPCC guidelines with a Tier 1 level of accuracy. The textile industry covers the processing, spinning, weaving, and finishing of textile and clothing materials. Calculations will be focused on the spinning and weaving (including integrated) industries. Emission profile calculations are still in place, and data collection is still being done through questionnaires and meetings with industry via training or field visits.

In the sub-sector of the cement industry, a review of GHG emissions inventory and emissions baseline has been prepared for 2015. Baseline calculations are now available for 2016, from 13 cement companies throughout Indonesia. Several sources of related GHG emissions to be calculated are emissions from the energy and process sectors (IPPU) using the WBCSD (The World Business Council for Sustainable Development) calculation method with Tier 1 precision for sources of energy emissions and Tier 3 for source emission of IPPU. The method of calculating emissions is in accordance with the Cement Industry's Cement Emission Calculation Directive issued by Ministry of Industry in 2014. With the conclusion of a series of meetings already held, the PMR will again hold a follow-up meeting to come to an agreement on baseline calculations and marginal cost reduction curves, as well as the exchange of information on instrument options.

Source : GHG Emission Industry Sector

Industry GHG Emission Profile

GHG emissions from the industrial sector come from three

categories: 1) Energy, 2) Waste, and 3) Industrial Process and

Product Use (IPPU). Emissions derived from energy categories

include direct (direct) emissions from burning of fossil fuels and

indirect emissions from electricity usage (indirect). Emissions from

the waste category include wastewater emissions (WTP), mud

treatment, and solid waste. The emissions from IPPU include

emissions from industrial processes and product utilization.

Illustrations from industrial sector emissions sources can be seen

in the following figure.

Industrial Sector The national GHG emission inventories for the

period 2000-2014 are estimated using the methodology

referring to the 2006 IPCC Guidelines. The level of accuracy

(Tier) used to estimate GHG emissions in each sector uses a

different approach, in the energy sector using Tier 1, partial

IPPU large use of Tier 1, while some industries use Tier 2. As for

the waste sector mostly use Tier 1.

Summary of National GHG Emission Inventories 2000 and 2014 (Gg CO2e) from 3 Emission Sources

Mr. Willem Petrus as Head of Data and Information Center

(Pusdatin) of the Ministry of Industry : The importance of

the involvement of the industry in preparing the emission

profile of this industry sub sector. In Law no. 3/2014 on

industry, which mentioned 4 types of industry data that

need to be submitted to the ministry, including industrial

data, industrial area data, development data and market

opportunities, and data of industrial technology

developments.

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Site Visit PT. Pupuk Sriwijaya Palembang (Plant PUSRI 2B)

Site Visit PT. Sritex Sukoharjo

Team of Industry Working Group visits to Several Industry Sectors

The representatives of the Ministry of Industry, together with the Coordinating Ministry for Economic Affairs, the Associations of related industry sectors, the Experts Team and PMR Indonesia visited field industries such as fertilizers, steels and textiles from January to February 2018.

The field visits were conducted in the context of reviewing the compilation of the GHG emissions profile and the identification of GHG emission reduction mitigation action for the industrial sector.

PT Sri Rejeki Isman (Sritex), Sukoharjo Factory

The visit was held on February 8, 2018. PT. Sritex is one of the integrated companies for the textile industry. The activity of this industry is in spinning, weaving, printing and dyeing, with garments now being developed through rayon cotton making activities. To date, there are 23 subsidiaries (PT) under the management of Sritex Group. It was also stated that, since 2015, the company has implemented the Energy Management system (EnMS) involving two types of management practices and technological renewal.

For technological renewal, activities have been carried out by PT. Sritex which include, but are not limited to, improving the quality of power and making electrical energy more efficient; using VSD (Variable speed Drive) and/or servo motor on units that often have repetitive load increases, using motor power according to need, minimizing loss of thermal energy from boiler and oil heaters, replacing old motors with more efficient motors, as well as exploring new technologies and renewable energy sources for the advancement of EnMS.

The review was done on Finishing Plant and Spinning Plant 1 and 3. The mitigation effort concerns the type of roof existing in the finishing plant, and the replacement of the roof in some parts of the factory with a semi- transparent roof, utilizing light from the sun such that the use of electricity may be reduced. Energy efficiency has been improved in Spinning Plant 3 by the replacement of a chiller engine with the use of block ice, which can significantly reduce the use of energy.

PT Pupuk Sriwijaya, plant PUSRI 2B, Palembang

The field visit was conducted on January 11, 2018. In addition to looking at the mitigation that has been done by Pusri, the monitoring and reporting of internal GHG emissions was examined. Globally, based on mitigation activities that have been done in PUSRI, emissions have been reduced from 7.6 million tons of CO2 in 2015 to 6.6 million tons of CO2 in 2017 (a 3-4% decrease). The decrease was achieved through substitution of fuel use, utilization of tail gas as fuel gas and optimization of operating conditions in Primary Reformer, plant revitalization (45.8 MMBTU / Ton Ammonia to 31.49 MMBTU / Ton Ammonia). For internal GHG emission reporting schemes, paper-based reporting of each plant (1B, 2B, 3, and 4) to the K3LH division (Safety, occupational health and the environment) was subsequently processed by the K3LH division.

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PT. Krakatau Steel, Cilegon

Activities site visit PT. Krakatau Steel was held on February 26, 2018 and implemented as one of the earliest identification data and information for the iron and steel industry.

PT. Krakatau Steel uses integrated energy which is an energy- intensive industry, the process of steel making, rolling mill and iron making is the highest electricity use in the industry. While the use of the highest natural gas is used in the process of iron making as a feed reformer and a small part is used in the activities of rolling mill and steel making. While the challenges faced by the steel industry is the dependence of the industry on imported raw materials which is accompanied by an increase in natural gas prices which impact on the decline in company productivity. The company has also implemented energy efficiency in power plants such as fuel oil and gas fuel which produce 29% efficiency, then combine fuel (Gas Fuel and Coal) to produce 43% efficiency while in the future will be developed Electric Steam Power Plant (PLTU)-CCP (Coal and Gas Fuel) by using COG blast furnace results, said Mr. Yusuf Marhaban, GM Research and Technology representing his company.

Site Visit Krakatau Steel

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Site Visit PLTU Jawa Tengah 2 Adipala, Cilacap

Site Visit PLTU Lestari Banten Energi

Sight Seeing GHG Emission Mitigation for Power Sector

PMR Indonesia held field trips to the power plant sector together withDirectorate General of Electricity - Ministry of Energy and Mineral Resourcesrepresentatives and implementing consultants.

The visit was conducted in the framework of the study on preparation of GHGemission profile and identification of GHG emission reduction action for powerplant sector. The field visit is intended to provide an overview of the mitigationefforts of emission reduction that have been done, as well as other potentialmitigation actions that may be implemented by the generating unit.

Several generating units visited during the period of January - February 2018are: Electric Steam Power Plant (PLTU) Lestari Banten Energi, Adipala PowerPlant, Cirebon Power Electric Power Plant, Tanjung Priok Gas and Steam PowerPlant (PLTGU) and Diesel and Gas Power Plant (PLTDG) Pasanggaran Bali. Ateach field visit, the company describes the company's efforts in supporting themitigation of emissions reductions, conveying also the potential mitigation thatthe company may be doing in the future.

Electric Steam Power Plant (PLTU) Lestari Banten Energy

The field visit was conducted on January 30, 2018. From the results of visit andexplanation from the manager, Electric Steam Power Plant (PLTU) Lestari BantenEnergy has not done much energy conservation since the Electric Steam PowerPlant (PLTU) itself is still relatively new, however the small motors in ElectricSteam Power Plant (PLTU) Lestari Banten Energy have been equipped with VFDto reduce energy consumption. Some improvements have also been made, suchas tuning in ESP and coal milling when workload conditions decreased.

Nevertheless, the energy saving results of the improvement have not beendocumented and have not conducted energy management reporting as requiredby Government Regulation No. 70/2009. Until now there has been no calculationof GHG emissions in Electric Steam Power Plant (PLTU) Lestari Banten Energy.However, Electric Steam Power Plant (PLTU) Lestari Banten Energy continuouslymonitors emissions using CEMS. The emission parameters of CEMS are SOx, NO,CO, O2, Gas and opacity. The Environmental Management Plan (RKL) andEnvironmental Monitoring Plan (RPL) reports use data from the CEMS.

Electric Steam Power Plant (PLTU) Central Java 2 Adipala, Cilacap

Field visit activities were conducted on February 07, 2018. The review wasconducted on the stack, control room, and generator unit of Electric SteamPower Plant (PLTU) Adipala becoming the main orientation on this field visit. Asrepresented by the representative of Electric Steam Power Plant (PLTU)Adipala, the company (1 x 660 MW) is the first PLN's Super Critical power plantwith a maximum production of 645 MW (gross) and commenced operations inSeptember 2016. The efficiency of the plant at an average operating expense in2017 (615 MW - nett) of 36.03%.

The company also made some improvements to reduce energy consumption,including the management of CWP and coal milling operational expenses whenthe condition of workload decreased.

Site Visit PLTU Cirebon Power Eelktrik

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Site Visit PLTDG Pasanggaran Bali

Electric Steam Power Plant (PLTU) Cirebon Power Electric

The result of the field visit and information submitted by Cirebon Power Electric power plant management is known that Cirebon Power Electric power plant (1 x 660 MW) is PLN's Super Critical power plant with a maximum production of 698 MW (gross) and commenced operations in July 2012.

In 2017 Cirebon Power Electric power plant has done the efficiency of the plant at an average operating expense (660 MW - nett) of 37%. Some improvements to reduce energy consumption by Cirebon Power Electric power plant include the replacement of motorcycles and turbine upgrade plans. Improvement has been reported but not quantified, either in unit energy, cost or emissions.

Gas and Steam Power Plant (PLTGU) Tanjung Priok

The field visit was conducted on February 12, 2018, from the exposure submitted by this company, it is known that Tanjung Priok Gas and Steam Power Plant (PLTGU) has made energy efficiency efforts, including: 1) Routine hot gas maintenance per 3 years and rotor per 200,000 hours; 2) Abradable Sealing Steam Turbine Works 1.4 Gas and Steam Power Plant (PLTGU) Block I & II; 3) Replacement Blade level 1 Steam Turbine 1.4 Gas and Steam Power Plant (PLTGU) Priok; 4) Optimization of Start Up Process Gas and Steam Power Plant (PLTGU) Block I, II with Direct Combine Cycle (DCC) method; 5) Optimization of pressure control valve deaerator setting to lower exhaust gas temperature; 6) Initiation of utilization of HRSG blowdown water waste for air conditioner by Absorption Chiller area engineering and maintenance (Detail Engineering design); 7) Education on Energy Saving and Anticipating Global Warming: Community Based Efficiency Program; 8) Utilization of Solar cell for lighting Sabisa farm and Srengseng Sawah area.

Diesel and Gas Power Plant (PLTDG) Pasanggaran Bali

The field visit was held on February 27, 2018. Representatives from Diesel and Gas Power Plant (PLTDG) Pasanggaran Bali delivered their company profile. The Power Generation Unit (UP) of Bali operates 12 units of Diesel and Gas Power Plant (PLTDG) located in Pesanggaran, Denpasar, Bali. In addition, The power generation unit Bali also has a Gas Power Center (PLTG) located in 3 sub units, namely Pesanggaran, Pemaron & Gilimanuk. The power generation Bali has a total installed capacity of 557 MW.

Diesel and Gas Power Plant (PLTDG)Pasanggaran Bali has conducted several activities to support GHG emission reduction mitigation, among others: 1) Gas to Gas conversion with LNG mini facility in Pasanggaran which has been done since 2016; 2) Using renewable energy in one of the buildings in his company using solar panels; 3) Replacing the lamp (TL) with the lamp (LED); 4) Optimization of Turning Gear and Turbine Gas Pumps 3 and 4 Westing house budgeting. This was conveyed by Mr. Ngurah Wiadnyana (part of energy efficiency).

While the activities are a form of corporate concern to the environment, some of them are: 1) Organic waste processing into pellets as fuel (methane gas) household scale; 2) Biogas production using cow dung; 3) Waste wood processing as an alternative fuel. However, the resulting emissions reductions have not been calculated. Add Mr. I Wayan Sukerena (K3 section and environment).

Site Visit PLTGU Tanjung Priok

Site Visit PLTGU PT. Cikarang Listrindo

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Mr. Teddy C. Sianturi as Head of Center for Research and

Development of Green and Environmental Industry (Kapusbang IHLH),

Ministry of Industry concerning the importance of MRV, which in

addition as a media fulfillment obligation to the international world,

also more to improve the efficiency of collection data and information

and improve the credibility of emission reporting.

Dr. Ir. Lintong Sopandi Hutahaean, M. Che, as Director of Non-

Metallic Mineral Industry, also said that the development of MRV

GHG emission system is one of the central focus to escort the

achievement of government commitment in reducing greenhouse gas

emissions. Measurements and monitoring are needed to identify

emission trends, determine where emission reduction efforts should be

focused, and monitor their progress. Reporting and verification are

important to ensure the principles of openness, good governance,

credible results, accountability, and ensuring that all resources are

being used effectively.

SCHEME DEVELOPMENT OF GHG EMISSION MRV GUIDELINE FOR INDUSTRY SECTOR AND POWER SECTOR

PMR activities in Indonesia include developing emission profiles; system development and report verification (MRV) testing in the power and industry sectors; as well as the development and testing of a framework for market- based instruments (MBI). The power and industry sectors have been selected, given the significant amounts of GHG emissions in the national emissions compound and the need for an incentive scheme for both sectors.

A reliable MRV system is a prerequisite for developing effective market-based policy options and other climate change mitigation policies. Therefore, activities within the PMR aim to support the development of a robust system that allows Indonesia to obtain measurable, monitorable, reported and verifiable data from power generation and industry.

As stated by Mr. Teddy C. Sianturi, as Head of the Center for Research and Development of Green and Environmental Industry, Ministry of Industry, the importance of MRV, in addition to media fulfillment and obligations to the international world to improve the efficiency of data and information gathering as well improve the credibility of emission reporting, cannot be underestimated.

Dr. Ir. Lintong Sopandi Hutahaean, M. Che, as the Director of Non Metal Material Industry, Ministry of Industry, said that the development of the MRV GHG emission system is one of the central focuses in achieving government commitment to reducing GHG emissions. Measurements and monitoring are needed to identify emission trends, determine where emission reduction efforts should be focused, and monitor calculations and developments. Reporting and verification are essential to ensuring transparency, credible results, accountability, and ensuring the reported data is accountable in accordance with established national and international provisions.

Development of MRV Guidelines in the Industry Sector

The preparation of MRV guidelines supported by national experts from PMR Indonesia is being conducted by the Ministry of Industry for fertilizer sub- sector. The preliminary discussions were conducted with industry and associations in December 2017 and January 2018, and points of agreement were discussed in the Technical Guidelines for Fertilizer Industry GHG Emissions, published by the Ministry of Industry in 2017.

The current MRV guidelines are considered to be a medium of fulfillment of obligations to the international community. It is also one of the milestones in increasing the credibility of emissions reporting.

The MRV guidelines will then refer to the guidance manual, where the GHG emission calculation mechanism has been submitted. It is proposed that the MRV scheme be carried out in at least two ammoniac / urea plants to ensure that the scheme is compiled according to the appropriate guidelines and can be implemented properly in the future. It is expected that the fertilizer industry MRV guidelines will be available by the end of 2018.

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Development of Inventory of Greenhouse Gases Emission for Power Sector

In order to develop the GHG emission factor of the interconnection network, the power plant has collected data related to GHG emissions to Directorate General of Electricity - Ministry of Energy and Mineral Resources (DJK – KESDM) since 2009. Based on the data, Directorate General of Electricity - Ministry of Energy and Mineral Resources (DJK – KESDM) calculates the amount of GHG emissions from each power plant and establishes the consensus interconnection network emission factor. To date, 48 interconnection network emission cuts have been established across Indonesia.

As a refinement step, Directorate General of Electricity - Ministry of Energy and Mineral Resources (DJK – KESDM) with PMR program support plans to require generating companies to calculate and report GHG emissions from the generating units they operate. To be able to uniform the results of GHG emissions calculations and as a guide in calculation and reporting, Directorate General of Electricity - Ministry of Energy and Mineral Resources (DJK – KESDM) developed guidelines for calculation and reporting of GHG emissions in the power generation sector.

The finalized guidelines contain the scope of GHG inventory, methods and calculation of GHG emissions, reporting and controlling format and quality assurance. Reporting will be done through the online system being developed.

Mr. Munir Ahmad, Director of Electricity Engineering and Environment, Directorate General of Electricity, Ministry of Energy and Mineral Resources stated that 'GHG emission inventory guidelines system is important to improve accuracy in effective climate change formulation and policy', while Mr. Benhur L. Tobing, Head of Sub Directorate of Environmental Protection of Electricity, Ministry of Energy and Mineral Resources at a series of meetings GSM Emission Inventory Development Guidelines says 'Baseline calculation is still very diverse to be a major challenge, and for that cooperation and coordination among stakeholders is very important, in order to build an integrated system reliable and credible'.

Mr. Munir Ahmad, Director of Electricity Engineering and

Environment, Directorate General of Electricity, Ministry of Energy

and Mineral Resources stated that the GHG emission inventory

guidelines system is important to improve accuracy in effective

climate change formulation and policy.

Mr. Benhur L. Tobing, Head of Sub Directorate of Environmental

Protection of Electricity, Ministry of Energy and Mineral Resources at

a series of meetings GSM Emission Inventory Development

Guidelines: Baseline calculation is still very diverse to be a major

challenge, and for that cooperation and coordination among

stakeholders is very important, in order to build an integrated system

reliable and credible.

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Carbon market/carbon pricing is not yet well-known in Indonesia. More socialization is needed, preferably using social media. Those who knows carbon market but never been involved in it thinks of carbon market is to sell carbon credit to foreign countries. The practitioners thinks that carbon credit should be accessible to anyone but prioritize should be put to international carbon market.

Several Take Away

Non Practitioner Perception Practitioner Perception

PERCEPTION SURVEY :

CARBON MARKET FOR CLIMATE CHANGE

Background Survey

PMR Indonesia has distributed a Survey of Perceptions on the Carbon Market for Climate Change by online and disseminated through social media.

The survey, held over 3 months (Jan-Mar. 2018), and received 116 respondents with various backgrounds, the respondent are from central government, local government, private (industry or private sectors), academics, and others. The results of the survey have given some conclusions as below description :

Develop bilateral/multilateral carbon marketDevelop mandatory GHG emission reduction policyBuild stakeholders capacity

The top 3 things GoI should do according

to practitioners respondent are :

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Mr. Dida Gardera, Ministry of Economic Coordinator said

that MBI is one of the alternative forms of instruments that

can support Indonesia in achieving the Paris Agreement

target for 29% emission reduction by 2030.

MARKET BASED INSTRUMENT AS AN OPTION FOR CLIMATE CHANGE MITIGATION POLICY

Working Group on Market Based Instrument Held Focus Group Discussion in the Framework of Policy Market Option Research.

Jakarta_PMR Indonesia under the coordination of the Coordinating Ministry for Economic Affairs is conducting a review of policy options for market-based climate change mitigation together with the Working Group on Market Based Instruments (MBI WG) - PMR. The purpose of this study is to provide input for decision-making processes related to the implementation of market-based instruments to improve national mitigation actions. The goals of this study are to provide: - comprehensive information on MBI options in the world; - possible MBI options implemented in Indonesia and their socio-economic impact estimates; and - selecting MBI scenario development path.

As an effort to synergize the stakeholders in conducting this policy-based mitigation policy options assessment study, the kick-off meeting was held on December 15, 2017. As a follow-up step, there was an MBI-PMR working group meeting with the consultant team with the aim of discussing the appropriate MBI scenario conditions for Indonesia as well as the follow-up plan for the implementation of the study.

Mr. Dida Gardera, Deputy Assistant of Environmental Conservation, Coordinating Ministry for Economic Affairs, said that market-based instruments are one option that can be used to support climate change mitigation policy in Indonesia in achieving the 29% emission reduction target by 2030, as stated in the document NDC Indonesia.

Vladislav Arnaoudov, from Deloitte Tohmatsu, as well as the Team Leader of the study activities, also explained the experience of applying market-based instruments in various countries to provide a detailed picture of its development to stakeholders in Indonesia.

Discussions at MBI working group meetings have been very interactive. Each group member provides input related to the consultant's work plan, whereby, in developing the MBI option, there needs to be engagement in the form of advice and direction from MBI WG-PMR Indonesia. It is expected that the MBI options submitted by consultants will be more likely to be applied in accordance with the socio-economic conditions in Indonesia.

At the end of the event, members of the working group have agreed on nine MBI options that can be further analyzed by the Consultant Team and may then provide an input on the suitability and similar challenges of MBI if implemented in Indonesia. These options are the European Union Emission Trading System (EU ETS); Kazakhstan ETS; British Columbia Greenhouse Gas Industrial Reporting and Control Act (GGIRCA); China ETS; Tokyo Metropolitan ETS; Chile Carbon Tax; Australia Emissions Reduction Fund; EU Renewable Energy Certificate; and India Perfom Achieve and Trade (India-PAT).

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The meeting was attended by a Working Group on Market Based Instruments (MBI WG) consisting of the Directorate General of Climate Change Control- Ministry of Environment and Forests, Center for Strategic Policy- Ministry of Environment and Forestry (PUSJAKSTRA-KLHK), Center for Social Research and Development Economics, Policy and Climate Change - Ministry of Environment and Forestry, Environment Directorate - Indonesia National Development Planning Agency (BAPPENAS), Fiscal Policy Office-Ministry of Finance (BKF-MoF), Directorate General of New Renewable Energy and Energy Conservation - Ministry of Energy and Mineral Resources (DGR-ESDM), and Association of Indonesia Carbon Managers with coordinator Director of Mobilization of Sectoral and Regional Resources, Ministry of Environment and Forestry.

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