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Enhanching ambition in climate change mitigation: carbon capture and strorage
The Paris Agreement, aimed at curbing the emissions of carbon dioxide and other greenhouse gases, slashed the global temperature increases to be kept to "well below" 20 C. Under the Paris Agreement, Parties should submit their pledges, Nationally Determined Contributions (NDC), that set their ambitious target of reducing emissions to mitigate Climate Change. This NDC has to be updated every five years and shows an improvement, or a more ambitious target than the previous NDC. To achieve that goal, this paper will focus on exploring the feasibility of incorporating Carbon Capture and Storage (CCS) into Indonesia's next Nationally Determined Contributions (NDC), the available policy options, and how MOFA can help to achieve those goals.
Considering the development of technologies for mitigating Climate Change, Carbon Capture and Storage (CCS) is a recognized technology for mitigating greenhouse gas (GHG) emissions, in particular carbon dioxide (CO2). CCS's basic idea is to "capture" the CO2 before it is released into the atmosphere. CCS involves the capture of CO2 at large final emitters, the compression and transportation of the CO2 to a storage destination, and its injection under pressure into the pore space of suitable geological formations, where it will remain forever. These are the opportunities that will help Indonesia set a more ambitious target without sacrificing Indonesia's development goal, the Nawa Cita (Nine Priority Agendas) framework.
The potential of Carbon Capture and Storage to help Indonesia achieve net zero by 2060 under its second NDC is apparent. Although the technology is still considered expensive, the decrease in the costs of carbon capture and storage technology in the future is promising. At the global level, private sectors in different countries have already invested their money in developing CCS facilities. Indonesia could benefit from the climate funds established under Article 9 of the Paris Agreement to offset the high cost of CCS technology. Another approach would be to encourage the private sector by offering incentives and tax exemptions to investors that invest in the development of CCS plants in Indonesia. CCS plants should be prioritized for domestic use to ensure Indonesia can still exercise its right to develop and also keep its commitment to combat climate change.
The policy option that MOFA should take as its short-term strategy is to be the main actor in the establishment of legal frameworks, both domestic and international. The knowledge and skill enhancement of MOFA diplomats and negotiators are important aspects of supporting the success of this mission. To achieve this goal, MOFA should also engage relevant stakeholders. The concerted efforts should be incorporated into the MOFA's Grand Design of Economic Diplomacy. Future environmental and climate change challenges will have a significant impact on international economic cooperation and can not be separated from economic diplomacy.
And as a long-term strategy, once the CCS facilities in Indonesia are ready to operate, MOFA, as the national negotiator for international agreements, should foster international cooperation. This cooperation should mainly focus on addressing challenges such as financial support, access to the best available technology related to CCS, and capacity building for CCS technology. MOFA should actively negotiate international agreements that will facilitate cooperation under Article 6 of the Paris Agreement, which could be market-based (emission trading through ITMOs), voluntary (that will reduce emissions in the host party; emission reduction achievement can be divided between the parties), or non-market-based (mitigation and adaptation). Being an archipelagic state, Indonesia is very vulnerable to the adverse impacts of climate change. Therefore, Indonesia should take action now to mitigate and adapt, building climate resilience for all Indonesians.
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