\u201cThe price or cost could be much lower, falling by around 90 per cent\ncompared with the default value in the European Union\u2019s policy\nframework.\u201d<\/p>\n
Jakarta (ANTARA) \u2014 National Economic Council (DEN) member Mochamad\nFirman Hidayat said industrial emissions verification could potentially\nreduce estimated costs under the European Union\u2019s Carbon Border\nAdjustment Mechanism (CBAM) by around 90 per cent in a simulation of one\ncase.<\/p>\n
Firman made the remarks at a discussion organised by the Center for\nIndonesian Policy Studies (CIPS) in Jakarta on Thursday. He said the DEN\nhad analysed CBAM\u2019s potential effects on the competitiveness of\nIndonesian exports, including comparing cost calculations based on the\nEU\u2019s default emissions values with a case provided by the Ministry of\nIndustry.<\/p>\n
The example suggested that estimated carbon costs could fall if\nbusinesses used actual emissions data measured and verified in\naccordance with applicable requirements. However, the 90 per cent figure\nrepresents a potential reduction in one case, not a realised saving or a\nreduction that would apply to all exporters.<\/p>\n
Firman said using default emissions values could undermine the\ncompetitiveness of some Indonesian steel products, particularly\nhot-rolled coil (HRC) and carbon-steel wire rod. DEN simulations\nindicated that, for some of these products, carbon costs calculated\nusing the EU\u2019s default values could even exceed their sale value.<\/p>\n
He therefore called for the measurement, reporting and verification\n(MRV) of industrial emissions to be accelerated, particularly in sectors\nlikely to be directly affected by CBAM. \u201cThis is one of the quick wins\nwe need to deliver,\u201d he said.<\/p>\n
Firman said MRV should be prioritised for iron and steel products and\nrelated sectors, enabling exporters to demonstrate product emissions\nusing accountable data. Actual emissions data that meet EU verification\nrequirements could reduce exporters\u2019 reliance on default values when\ncalculating their carbon obligations.<\/p>\n
According to the DEN\u2019s analysis of 2025 trade data, Indonesia\u2019s\nexports to the EU in product groups covered by CBAM were worth about\nUS$2.32 billion, equivalent to Rp42.18 trillion. This represented around\n11.9 per cent of Indonesia\u2019s total exports to the EU.<\/p>\n
Indonesia\u2019s exports of similar product groups to the rest of the\nworld were valued at about US$33.3 billion, or Rp605.49 trillion. Firman\nwarned that the amount of trade potentially affected could increase if\nother countries adopted similar carbon-adjustment policies.<\/p>\n
He stressed that these trade figures show the exposure of export\nproducts to carbon policies; they do not represent losses or CBAM costs\npayable by exporters. Product mapping, he said, should guide policy\npriorities so that the industries most at risk can prepare early for\nmarket requirements.<\/p>\n
CIPS researcher Andree Surianta said Indonesia needed an integrated\nindustrial emissions measurement system that is recognised\ninternationally to support trade competitiveness. \u201cWe should not develop\nit just for our own use, but so that we can actually trade carbon with\nour trading partners,\u201d he said.<\/p>\n
Andree said the emissions measurement system being developed by the\nMinistry of Industry should be aligned with the carbon trading system\noverseen by the Ministry of Environment. Such coordination is important\nto ensure national systems do not develop separately and can help meet\ntrading partners\u2019 sustainability requirements, he said.<\/p>\n
The Ministry of Industry has also included decarbonisation road maps\nfor nine industrial subsectors\u2014including metals, cement, fertilisers and\nchemicals\u2014as part of its strategy for a transition to low-carbon\nproduction.<\/p>\n
The EU\u2019s CBAM entered its definitive phase on 1 January 2026,\ninitially covering iron and steel, aluminium, cement, fertilisers,\nhydrogen and electricity. Under European Commission rules, importers can\nreport emissions using default values or actual emissions data verified\nby an accredited verifier in line with CBAM requirements.<\/p>\n
Purchases of CBAM certificates for goods imported during 2026 are\nscheduled to begin in February 2027. The first annual declaration and\nthe corresponding surrender of certificates are due by 30 September\n2027.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/den-verifying-industrial-emissions-could-cut-cbam-costs-by-90-per-cent-1793264020", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }