Singapore, Indonesia Sign LOI On Cross-Border Carbon Capture

Singapore, Indonesia Sign LOI On Cross-Border CCS - Carbon Herald
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Singapore and Indonesia have signed a Letter of Intent (LOI) for cooperation in the field of cross-border carbon capture and storage (CCS) with the aim to achieve net-zero emissions by 2050, Indonesian news agency Antara reported Thursday.

The move follows Indonesia’s decision to regulate cross-border CCS, allowing operators to reserve storage capacity for imported carbon dioxide (CO2).

Singapore, recognizing the importance of CCS in its transition to a low-carbon future, is the first country to sign an LOI with Indonesia after the announcement, according to Keith Tan, Deputy Secretary (Industry) of Singapore’s Ministry of Trade and Industry.

He expressed confidence that Singapore and Indonesia could lead the way in expediting the execution of cross-border CCS projects across Southeast Asia.

Relevant: New Regulations: Indonesia Greenlights CO2 Storage For Foreign Contractors

Speaking on behalf of the Coordinating Ministry for Maritime Affairs and Investment, Jodi Mahardi, Deputy for Maritime Sovereignty and Energy, said, “This initiative positions Indonesia as a key player in the Southeast Asian CCS landscape by introducing the cross-border environmental cooperation model.”

The LOI between Indonesia and Singapore signals a proactive approach to leveraging innovative technology for environmental sustainability, he added.

This collaboration underscores the importance of CCS as a decarbonization method and highlights its potential to support sustainable industrial activities and create economic opportunities.

Under the LOI a joint working group comprising government officials will be stablished with the aim to develop a binding bilateral agreement.

This agreement will facilitate the cross-border transportation and storage of CO2 between Singapore and Indonesia, in line with Indonesia’s Presidential Regulation No. 14 of 2024.

Read more: Singapore Negotiates Carbon Credits Deals With Several Countries At COP28

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