Supporting Industrial Decarbonization, Pertamina NRE’s Carbon Credit Sales Increase

Jakarta, August 7, 2024 – Pertamina NRE’s carbon credit sales on the carbon exchange have increased. Growing awareness among industry players about climate change has driven increased efforts to reduce emissions from corporate operational activities. It is reflected, among other things, in the carbon credits increasing sales from Pertamina New & Renewable Energy (Pertamina NRE).

Pertamina NRE became the first carbon credit seller when the IDX Carbon inaugural trading was launched on September 26, 2023. The volume of carbon credits traded reached approximately 864 thousand tons of CO2e. At the time of IDX Carbon's inaugural trading, the volume sold reached approximately 460 thousand tons of CO2e. By July 2024, the realization of sales volume increased to approximately 565 thousand tons of CO2e. Pertamina NRE’s carbon credits currently dominate 93% of Indonesia’s carbon credit market share.

“Pertamina NRE is strongly committed to decarbonization efforts in Indonesia. One is through carbon credit trading to support emissions reductions, especially in the industrial sector. We have various green and clean energy portfolios that have the potential to become carbon credit sources. We are very open and enthusiastic to collaborate with industries that have aspirations to reduce emissions from their operational activities,” said Dicky Septriadi, the Corporate Secretary of Pertamina NRE.

Pertamina NRE has carbon credits from the Lahendong Geothermal Power Plant Units 5 and 6, managed by Pertamina NRE’s subsidiary, PT Pertamina Geothermal Energy Tbk (PGE), with a volume of approximately 864 thousand tCO2e, produced during the period 2016-2020. These carbon credits have met the national standards set by the Ministry of Environment and Forestry.

Green initiatives such as carbon trading have the potential to significantly contribute to Indonesia's fulfillment of the enhanced nationally determined contribution (ENDC) of 31.89% without international support and 43.2% with international support. The carbon business ecosystem will be formed if there is sufficient support, especially from the regulatory side. With its abundant clean energy and vast forest, Indonesia has enormous potential in technology-based and nature-based.

Dicky added that in the future, Pertamina NRE's carbon credits will not only come from geothermal power plants but also from other clean energy sources, such as the Jawa-1 Combined Cycle Power Plant, which has a potential of around three million tons of CO2e per year. Another carbon credit source currently in the validation stage is the Sei Mangkei Biogas Power Plant, with an estimated carbon credit of 150 thousand tons of CO2e produced in 2021-2023 and 200 thousand tons of CO2e produced in 2024-2027.

The Vice President of Corporate Communication of PT Pertamina (Persero), Fadjar Djoko Santoso, added that Pertamina encourages all its business lines to play a role in carbon trading. It follows the Pertamina Group's commitment to decarbonization, which is expected to accelerate the carbon emission reduction targets achievement.

"Pertamina is committed to carrying out decarbonization across all of its business lines, including working with partners to realize the Net Zero Emission target," said Fadjar.

Pertamina NRE is committed to supporting net zero emissions by at least 2060 and becoming Pertamina's frontline in the energy transition through green initiatives and the development of green businesses.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**