PT Pertamina Geothermal Energy (PGE), a subsidiary of Indonesian oil and gas company Pertamina, has generated new revenue from carbon credits worth $747,000, according to an audited financial statement published on 30 March 2023. The carbon credit revenue was generated by two geothermal power plants – Ulubelu units 3 and 4, and Karaha – which produced around 1.7m tonnes of carbon emission reductions since they began commercial operations until early 2020. PGE has also recorded the potential for carbon reduction at five other power plants. PGE is committed to environmental sustainability and governance (ESG) initiatives, including rehabilitating 588 ha of forest and programme to increase plant biodiversity. PGE currently manages 13 geothermal energy regions with an installed capacity of +1.9 GW. About 672 MW of that current capacity is managed directly by PGE, while 1,205 MW is handled in a joint-operation contract scheme. The geothermal capacity contributes around 82% of Indonesia’s overall installed geothermal capacity, with the potential to reduce CO2 emissions by around 9.7 million tonnes per year.
It is important that carbon credit schemes also benefit local communities.
The World Meteorological Organisation has stated that 193 countries have given unanimous backing to a scheme to monitor global greenhouse...