Indonesia

This project aims to assess the impact of international carbon tariffs—particularly the European Union’s Carbon Border Adjustment Mechanism (CBAM)—on Indonesia’s carbon-intensive industrial exports such as iron and steel, cement, aluminium, and fertilisers, and to support the decarbonisation of the industrial sector in line with global climate commitments. Under collaboration with the Ministry of Trade and the Ministry of Industry, the project will recommend legal frameworks, institutional mechanisms, and incentive structures that align with CBAM and similar policies from other countries, including the US and Japan. It will also guide industrial players in adopting energy efficiency measures and transitioning from fossil fuels to renewable energy, thereby enhancing the global competitiveness of Indonesian exports and supporting the country’s commitment to energy transition. By identifying best practices, policy options, and financing strategies, the project will promote a just, economically viable energy transition aligned with Indonesia’s net zero emissions target by 2060.

Implementing Partners

RICARDO and Consortium

In partnership with

• Ministry of Trade (MOT)
• Ministry of Industry (MOI)

Strategic Outcome

Policy Alignment with Climate Commitments

Project Documents

This project is currently underway. Related publications and reports will be made available in due course.