The government of Indonesia has just announced new legislation that aims to boost the use of carbon capture and storage (CCS) in the oil and gas sector.
The new guidance will help encourage fossil fuel companies to equip their operations with carbon capture, utilization and storage (CCUS) facilities to curb emissions.
And although the new legislation will encourage the use of CCS and CCUS at oil and gas production sites, it will not make the installation of such solutions mandatory.
Under the regulation, companies in the oil and gas industry will be incentivized to install the climate technology through carbon credits.
This measure is in line with the government’s agenda to both slash its carbon dioxide emissions, while also increasing oil and gas production in Indonesia.
As one of the world’s top greenhouse gas (GHG) emitters relative to its size, Indonesia is under much pressure to adopt carbon capture at a larger scale and has set a target of achieving net-zero emissions by 2060.
“Indonesia has geological formations that can be used to store carbon emissions permanently through the use of technology,” the country’s energy ministry commented.