Pertamina Geothermal Energy Tbk

PT Pertamina Geothermal Energy ("PGE") is a company that develops clean energy generation & environmentally friendly which manages 14 Work Areas with total installed capacity up to the present of 617 MW. With an installed capacity of 617 MW, there is a potential reduction of carbon emissions of 2.58 million tons CO2e / year and is included in the Clean Development Mechanism (CDM) mechanism. CDM is a project with a function to reduce GHG emissions can be economically useful and can reduce global warming to support sustainable development. This is in line with the commitment of the Government of Indonesia at the UN climate conference 2015 (COP-21) in Paris that the Government of Indonesia sent a document called Intended Nationally Determined Contribution (INDC) which states a 29% emission reduction plan by 2030, up to 41% if it gets international support.

To date, PT PGE manages 7 CDM projects, of which 6 CDM projects of PT PGE have been registered with the United Nations Framework Convention on Climate Change (UNFCCC), Kamojang Unit 4, Ulubelu Units 3 & 4, Lumut Balai Unit 1 & 2, Units 3 & 4, Kamojang Unit 5 and Karaha Unit 1. As for Lahendong Project Units 5 & 6 are under registration for voluntary carbon.

PGE's efforts to increase the benefits associated with reducing carbon emissions do not stop at enrolling CDM projects at the UNFCCC, where in its implementation PGE seeks to allow carbon credits (as accumulated emissions reductions) to have better quality, higher complexity and benefits for sustainable development. This is achieved by seeking carbon credits to reach the Gold Standard / GS (or now referred to as Gold Standard for the Global Goals (GS4GG)) based on the benchmark of the Gold Standard Foundation. GS is a recognized carbon credit standard by more than 80 Non-Gonvermental Organizations (NGOs) worldwide. The GS scheme that followed was not easy which included preparation, validation, registration, monitoring of reporting and verification plans and after passing through various processes PGE successfully registered 5 CDM projects as CDM Gold Standard which is the first Gold Standard CDM project in Indonesia.

As another optimization innovation related to carbon emissions reduction management PGE has also registered its CDM project using a voluntary mechanism that is Verified Carbon Standard or VCS. The VCS Mechanism is an alternative to the development of carbon emissions reductions, especially in the voluntary market while still requiring a contribution to environmental and social aspects other than the potential aspect of emission reduction. The contribution of carbon emission reduction to VCS mechanism generally comes from the renewable energy, forestry and others sectors.

With the potential carbon credits that have been achieved, and taking into consideration the level of awareness of the world's increasing countries on the use of clean energy and carbon emission reduction, PGE expects CDM market to be better and more stable in the coming years, so that the potential of carbon credit PGE can be better commercialized. As a general overview, during the monitoring period of December 16, 2010 to February 28, 2011 for the Kamojang CDM 4, the potential reduction of carbon emissions that has been issued in the form of Certified Emission Reduction (CER) and has been successfully commercialized amounted to 92,691 tons CO2e, at which time the price of CER per ton CO2e is about 4 - 14 Euro. This is a separate achievement for PT PGE because it is a subsidiary of PT Pertamina (Persero) who first succeeded in registering the CDM project and successfully issued the Emission Reduction certificate.

In recent years, precisely after the end of the Kyoto Protocol in 2012, several climate change-related policies from countries have affected the Kyoto Market and impacted changes in carbon credit prices. For PGE, however, the condition is seen as a challenge to keep making the best contribution, especially in the aspect of carbon emission reduction, by staying active and committed to running all CDM Projects spread across PGE's working areas.

Hopefully this spirit can be an inspiration for us all in particular in order to achieve a decrease in the level of greenhouse gases in the world.