The Indonesian Ministry of Industry is set to impose maximum emission limits on cement, fertiliser, steel, and paper manufacturers while encouraging their participation in carbon emissions trading, a government official announced on Thursday.
Apit Pria Nugraha, head of the ministry’s Green Industry Center, stated that these four industries were chosen due to their high levels of emissions, which are particularly difficult to mitigate. The new regulations will be mandatory for all companies operating in these sectors.
Under the scheme, companies that emit below the prescribed limit will be able to sell their excess carbon allowances for financial compensation. Conversely, those exceeding the limit will be required to purchase carbon credits from lower-emitting firms to offset their surplus emissions.
The initiative is part of Indonesia’s broader strategy to curb industrial carbon output and promote sustainable manufacturing. Nugraha also revealed that the programme would later be expanded to include five additional sectors, including the automotive industry.
