Pertamina Utilizes Carbon Market Projects to Pursue NZE Targe

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Baku, November 12, 2024 – PT Pertamina (Persero) has begun exploring carbon business opportunities as part of its commitment to energy transition, aiming to achieve Net Zero Emissions (NZE) by 2060. Speaking at a panel session during COP 29 in Baku, Azerbaijan, CEO of Pertamina New and Renewable Energy (PNRE), John Anis, highlighted the company’s strategies for developing its carbon business.

In his presentation, John emphasized carbon trading’s significant potential for energy companies and its substantial environmental benefits.

Indonesia holds considerable potential in this area through renewable energy technology solutions and mangrove conservation projects, which Pertamina is implementing in collaboration with strategic partners.

“We have two main approaches to carbon trading: the first is technology-based solutions, such as the renewable energy projects we have been developing. On the other hand, there are nature-based solutions, where we partner with strategic collaborators on various projects, like mangrove conservation, which can later be formulated into carbon credits,” said John.

With rising demand and increasingly competitive carbon prices in global markets, including Indonesia, John underlined the promising future of carbon trading.

“The carbon market in Indonesia has great growth potential, especially as the government begins introducing broader carbon storage mechanisms in the coming years,” he added.

PNRE has also demonstrated its commitment to reducing domestic emissions through various initiatives, including energy efficiency across its operational units, routine flaring elimination, and Carbon Capture, Utilization, and Storage (CCUS) technology application.

“This is not just about fulfilling targets but about creating a business aligned with a low-emission future and supporting a sustainable energy transition,” said John.

Through its collaboration with international partners such as ExxonMobil and Japanese firms, PNRE also focuses on developing CO2 storage projects, leveraging depleted oil and gas reservoirs in Indonesia.

John explained that the potential carbon storage capacity could reach up to five gigatons of CO2, which is expected to significantly contribute to Indonesia’s emission reduction efforts in the future.

He also highlighted the importance of corporate contributions in supporting various net-zero initiatives through carbon credit compensation and adopting net-zero certifications for internal operations.

“Young generations today are increasingly aware and eager to contribute to managing environmental risks. This step demonstrates that Pertamina is not only focused on business sustainability but also a greener future,” he concluded.

With these efforts, Pertamina positions itself as a leader in the energy industry, committed to sustainable business practices and actively contributing to global efforts to reduce carbon emissions.

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.**