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Carbon tax as a means to reach NDC targets, NZE: Nazara

The carbon tax we put in the Tax Harmonization Act (UU HPP) is not an emissions tax

JAKARTA (Antara) – Deputy Finance Minister Suahashir Nazara said the carbon tax will be a significant contribution towards achieving the Nationally Determined Contribution (NDC) target of 2030 and net zero emissions (NZE) or zero emissions by 2060. Said it was a tool.

According to the latest NDC document, by 2030, Indonesia aims to reduce emissions by 31.89% through its own efforts and 43.20% through international assistance.

At a media gathering here at the Treasury Office on Friday, Suahashir Nazarah said the carbon tax regulation contained in the Tax Harmonization Act (UU HPP) is not a tax on carbon emissions issued by entities. emphasized.

“The carbon tax we impose in the Tax Harmonization Act (UU HPP) is not a tax on emissions. We have to pay a tax, so a carbon tax is the instrument we use to achieve net zero emissions,” Nazarah asserted.

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If an entity emits carbon emissions in excess of the standards set by its sector, it can later choose between two options.

First, pay the state a carbon tax, or second, look for carbon converters in the carbon market.

“If you look for it in the carbon market, that means the entity buys carbon from the carbon market, so there must be a carbon market,” he said.

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In line with this effort, the government, through the Organization for Financial Services (OJK), is preparing a carbon trading infrastructure through carbon exchanges in line with the issuance of the Republic of Indonesia Minister of Environment and Forestry Regulation No. 21 of 2022. Implementation of carbon economy values.

Regulations of the Minister of Environment and Forestry provide for the development of carbon trading infrastructure through carbon exchange, regulation of the use of state revenues from carbon trading and/or administration of carbon trading. I’m here.

With the world’s third largest tropical forest and an area of ​​125 million hectares, Indonesia has great potential to lead the carbon market with an estimated 25 billion tonnes of carbon sequestration.

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https://en.antaranews.com/news/258673/carbon-tax-becomes-instrument-to-achieve-ndc-target-nze-nazara Carbon tax as a means to reach NDC targets, NZE: Nazara

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