The carbon footprint considers emissions from various sources. It encompasses both direct emissions (Scope 1) and indirect emissions (Scope 2 and Scope 3) associated with an entity's activities. Unlike scopes 1 and 2 which must exist (mandatory), scope 3 is optional. The entity will focus on recording and reporting scope 3 activities that are relevant to the company's business and objectives. In determining whether an activity is included in scope 1 or scope 3, an entity may refer to the approach / control used in setting its boundaries.

The carbon footprint in various industries can vary depending on the nature of their operations, energy sources used, and the extent of emissions-intensive activities involved.

Here are some examples of carbon footprints in different industries:

Energy and Power Generation

The distribution of emission scope in the Energy and Power Generation industry can vary depending on several factors, including the type of energy sources used, the specific activities of the company, and the geographic location. In the energy and power generation industry, the terms 'Scope 1', 'Scope 2', and 'Scope 3' are used to categorize and measure greenhouse gas emissions associated with different aspects of the industry's activities. These categories are defined by the Greenhouse Gas Protocol, a widely accepted accounting tool for measuring and managing greenhouse gas emissions.

Scope 1:
The Energy and Power Generation industry typically has significant Scope 1 emissions due to the combustion of fossil fuels in power plants and other facilities. This typically includes emissions from coal, natural gas, and oil used for electricity generation. In addition, there are also activities for transporting materials, products, and waste by the company's operational vehicles.

Scope 2:
Scope 2 emissions in the Energy and Power Generation industry are associated with the purchased electricity, heat, or steam used by companies. These emissions occur at the facility where the energy is generated but are considered indirect because the power plants are typically owned and operated by utility providers.

Scope 3:
In the energy and power generation industry, Scope 3 emissions can include emissions from the extraction, production, and transportation of fossil fuels used for energy generation, as well as emissions associated with the consumption of electricity or heat by end-users. Other Scope 3 emissions may come from employee commuting, business travel, the company's upstream and downstream activities, and emissions related to outsourcing/contracts, leases, or franchising that are not included in Scope 1 or Scope 2.

Manufacturing and Industrial Processes:
Industries such as cement, steel, chemicals, and plastics production can have substantial carbon footprints due to the emissions associated with their manufacturing processes. Energy-intensive industries, such as steel manufacturing or cement production, may have a higher proportion of scope 1 emissions due to the combustion of fossil fuels in their processes. In contrast, organizations with a significant reliance on purchased electricity may have a larger share of scope 2 emissions. Scope 3 emissions tend to be the largest and most challenging to quantify and control, as they involve a wide range of activities that extend beyond the direct operations of the organization.

Scope 1:
In the manufacturing and industrial sector, scope 1 emissions may include emissions from on-site combustion of fossil fuels, such as those generated by boilers, furnaces, internal combustion engines, cement catalyst, or other chemical manufacturing. There are also activities for transporting materials, products, and waste by the company's operational vehicles.

Scope 2:
Scope 2 emissions in the manufacturing and industrial sector typically include emissions associated with the use of grid electricity, heat, or steam used in the production process.

Scope 3:
Scope 3 emissions in the manufacturing and industrial sector can be broad and include emissions associated with the entire value chain, such as raw material extraction, transportation, and distribution, as well as the use and disposal of the final product. Other scope 3 emissions may come from employee commuting, business travel, waste management, and emissions related to outsourcing/contracts, leases, or franchising that are not included in scope 1 or scope 2 as well as scope 3.

Transportation:
The transportation sector contributes to a substantial carbon footprint, particularly in road, air, and marine transportation. The burning of fossil fuels in vehicles and aircraft releases CO2 and other GHGs into the atmosphere. This industry includes both direct emissions from fuel combustion (Scope 1) and indirect emissions from electricity consumption and fuel production (Scope 2 and Scope 3).

1. For road transportation, scope 1 emissions from fuel combustion in internal combustion engine vehicles tend to be the largest source of emissions. Scope 3 emissions can include emissions from vehicle manufacturing, fuel production and distribution, and supply chain-related activities.
2. For aviation, scope 1 emissions from jet fuel combustion in aircraft engines are significant. Scope 3 emissions can include emissions from aircraft manufacturing, infrastructure construction and maintenance, and the extraction and refining of aviation fuels.
3. For rail transportation, scope 1 emissions can come from diesel locomotives or electricity generation for electric rail systems. Scope 3 emissions may include emissions from the manufacturing of rail vehicles, infrastructure construction, and the transportation of goods or passengers.
4. For maritime shipping, scope 1 emissions primarily come from fuel combustion in ships. Scope 3 emissions can include emissions from shipbuilding, the extraction and refining of marine fuels, and the transportation of goods.

Agriculture and Food Production
Agriculture is associated with emissions from various sources, including enteric fermentation (methane from livestock digestion), manure management, rice cultivation (methane emissions from flooded rice paddies), and the use of synthetic fertilizers. The food production industry also has a carbon footprint related to processing, packaging, and transportation of food products.

Scope 1:
In this sector, scope 1 emissions typically include emissions from agricultural activities such as enteric fermentation (methane emissions from livestock digestion), manure management (methane and nitrous oxide emissions from animal waste), and agricultural waste burning. Additionally, emissions from on-farm energy use, such as the combustion of fossil fuels for machinery operation or heating, are also considered scope 1 emissions.

Scope 2:
These are indirect greenhouse gas emissions resulting from the generation of purchased electricity, heat, or steam consumed by the agricultural or food production organization. Scope 2 emissions in this sector primarily include emissions associated with electricity use in buildings, processing facilities, and other operations.

Scope 3:
Scope 3 emissions in the agriculture and food production sector can be diverse and encompass various aspects of the value chain. They include emissions associated with the production and transportation of fertilizers, pesticides, and agricultural inputs, as well as emissions from land use change, deforestation, transportation and distribution of agricultural products, and food waste.

It's important to note that agriculture and food production can have unique emissions beyond the traditional scopes. The distribution of emission scope in the agriculture and food production sector can vary based on factors such as farming practices, livestock types, land management techniques, energy sources used, and supply chain operations.
For example:

Agricultural soil management practices can lead to both emissions and carbon sequestration. Nitrous oxide emissions from the use of nitrogen-based fertilizers and methane emissions from rice cultivation are important considerations.

1. In agricultural soil management, scope 1 emissions primarily include the release of nitrous oxide (N2O) from the application of nitrogen-based fertilizers, manure management, and organic waste decomposition.
2. Scope 2 emissions primarily involve indirect greenhouse gas emissions resulting from the generation of purchased electricity, heat, or steam consumed by the agricultural organization.
3. Scope 3 emissions can include emissions associated with the production and transportation of fertilizers, pesticides, and other agricultural inputs, emissions from land use changes, deforestation, and other related activities outside the direct control of the agricultural operation.

Livestock production is a significant contributor to greenhouse gas emissions, primarily through enteric fermentation and manure management. Methane, a potent greenhouse gas, is released during these processes.

1. In livestock production, scope 1 emissions primarily include emissions from enteric fermentation and manure management. Enteric fermentation refers to the digestive process in ruminant animals, which produces methane as a byproduct. Methane is generated during the decomposition of manure in anaerobic conditions, and nitrous oxide can be produced through the microbial breakdown.
2. Scope 2 emissions primarily involve indirect greenhouse gas emissions resulting from the generation of purchased electricity, heat, or steam consumed by the livestock operation.
3. In livestock production, scope 3 emissions can include emissions associated with the production and transportation of feed ingredients, such as the cultivation of crops for animal feed and the processing and transport of feed materials. Other scope 3 emissions may stem from land use changes related to pasture expansion, emissions from fossil fuel use in the livestock supply chain, and emissions from the processing and transport of livestock products.

Deforestation for agriculture. It's important to note that deforestation itself is a significant driver of greenhouse gas emissions, primarily due to the release of carbon dioxide (CO2) from the clearing and burning of forests.

1. Scope 1 emissions include emissions from the clearing and burning of forests to make way for agricultural activities. The burning of vegetation, trees, and biomass during land clearance releases carbon dioxide directly into the atmosphere, contributing to climate change.
2. Scope 2 emissions primarily involve indirect greenhouse gas emissions resulting from the generation of purchased electricity, heat, or steam consumed by the organization.
3. In the case of deforestation for agriculture, scope 3 emissions can be significant. These emissions include those associated with land-use change, such as the conversion of forests to agricultural land, and the associated carbon loss. Scope 3 emissions may also include emissions from transportation and logistics related to the supply chain, such as the transportation of agricultural products and inputs.

Building and Construction
The construction industry contributes to the carbon footprint through energy consumption during building operations, including heating, cooling, lighting, and ventilation. Additionally, the production and use of construction materials such as cement, steel, and insulation can have significant emissions.

Scope 1:
Scope 1 emissions primarily include emissions from on-site combustion of fossil fuels, such as natural gas, oil, or coal, used for heating, electricity generation, and equipment operation during the construction process. Other sources of scope 1 emissions can include emissions from on-site construction vehicles and equipment.

Scope 2:
Scope 2 emissions in the building and construction industry are typically associated with the energy consumed by buildings and construction sites. This includes electricity used for lighting, heating, cooling, and operating machinery during the construction process. It may also include emissions associated with the off-site generation of purchased heat or steam.

Scope 3:
Scope 3 emissions in the building and construction industry can be significant and cover a wide range of activities. They include emissions associated with the production and transportation of building materials, such as cement, steel, glass, and insulation. Other scope 3 emissions may come from the transportation of construction materials to the site, emissions from the manufacturing of construction equipment, and emissions from the disposal of construction waste.

Operational phase: Once a building is completed, the operational phase becomes relevant. This involves the energy consumption and emissions associated with heating, cooling, ventilation, lighting, and other building-related activities. These emissions typically fall under scope 1 and scope 2 categories.

Retail and Consumer Goods
The carbon footprint in the retail and consumer goods sector encompasses emissions from various stages of the product lifecycle, including raw material extraction, manufacturing, transportation, use, and disposal. This includes emissions from energy consumption, packaging, and supply chain activities.

Scope 1:
In the retail and consumer goods sector, scope 1 emissions primarily include emissions from on-site combustion of fossil fuels, such as natural gas, oil, or coal, used for heating, electricity generation, and operation of facilities and equipment. Scope 1 emissions may also include emissions from company-owned vehicles used for transportation and distribution.

Scope 2:
Scope 2 emissions in the retail and consumer goods industry are typically associated with the energy consumption of retail stores, warehouses, and other facilities. This includes electricity used for lighting, heating, cooling, refrigeration, and other operational needs. It may also include emissions associated with the off-site generation of purchased heat or steam.

Scope 3:
Scope 3 emissions in the retail and consumer goods industry can include emissions associated with the production and transportation of goods, such as manufacturing processes, supply chain logistics, and product distribution. Other scope 3 emissions may come from employee commuting, business travel, waste management, and end-of-life disposal of products.

Emission scope can vary depending on various factors, such as the size and type of retail operations, supply chain complexity, and product characteristics. Some considerations include:

• Refrigerant emissions: Retail operations that involve refrigeration systems can contribute to emissions of hydrofluorocarbons (HFCs), which are potent greenhouse gases. These emissions fall under scope 1 or scope 3, depending on whether the refrigerants are produced on-site or as part of the supply chain.
• Product lifecycle emissions: Emissions throughout the entire lifecycle of products, including raw material extraction, manufacturing, transportation, use, and end-of-life disposal, are considered part of scope 3 emissions. These emissions can be significant, especially for industries with high energy consumption and complex supply chains.

Financial and Service Sectors
While these sectors may have relatively lower direct emissions, they can still have significant carbon footprints through indirect emissions associated with their operations, including energy consumption in buildings, employee commuting, business travel, and investments in carbon-intensive industries.

Scope 1:
In the financial and service sectors, scope 1 emissions are typically limited, such as emissions from on-site construction vehicles and equipment. However, some financial institutions or service providers may have scope 1 emissions associated with their own buildings and operations.

Scope 2:
In the financial and service sectors, scope 2 emissions are typically associated with the energy consumption of office buildings, data centers, and other facilities. This includes electricity used for lighting, heating, cooling, and powering office equipment.

Scope 3:
In the financial and service sectors, scope 3 emissions can vary significantly depending on the specific activities and services provided. Other scope 3 emissions may come from employee commuting, business travel, waste management, etc. Some common sources of scope 3 emissions in these sectors include:

1. Business travel: Emissions from air travel, road transport, and other modes of transport associated with business travel by employees of financial institutions or service providers are included in scope 3 emissions. This includes emissions from travel as well.
2. Supply chain emissions: Emissions related to the procurement and management of goods and services used by financial institutions or service providers, such as office supplies including paper, equipment, and IT infrastructure, may be included in scope 3 emissions.
3. Investments and lending: Financial institutions may have scope 3 emissions related to the greenhouse gas emissions of companies in which they invest or make loans. This can include emissions from companies in sectors such as energy, manufacturing, transportation, and agriculture.
4. Data centre: Service providers that operate data centres may have scope 3 emissions related to the energy consumption of their data centre and emissions related to the life cycle of the IT infrastructure and equipment used.

Identifying and Calculating GHG Emission

Calculating an entity's carbon footprint involves quantifying the greenhouse gas (GHG) emissions associated with its activities, operations, and supply chain.

In detail, here is an outline of the process:

1. Identify Source

   Define the boundaries and scopes of the carbon footprint assessment. Determine which emissions sources and activities will be included. Common scopes include Scope 1 (direct emissions from owned or controlled sources), Scope 2 (indirect emissions from purchased electricity, heating, or cooling), and Scope 3 (indirect emissions from activities outside the organization's control). Besides that, GHG emissions typically occur from the following source categories:

   • Stationary combustion: combustion of fuels in stationary equipment such as boilers, furnaces, burners, turbines, heaters, incinerators, engines, flares, etc.
   • Mobile combustion: combustion of fuels in transportation devices such as automobiles, trucks, buses, trains, airplanes, boats, ships, barges, vessels, etc.
   • Process emissions: emissions from physical or chemical processes such as CO2 from the calcination step in cement manufacturing, CO2 from catalytic cracking in petrochemical processing, PFC emissions from aluminum smelting, etc.
   • Fugitive emissions: intentional and unintentional releases such as equipment leaks from joints, seals, packing, gaskets, as well as fugitive emissions from coal piles, wastewater treatment, pits, cooling towers, gas processing facilities, etc.

   These emission sources are then categorized under the specified scope standards (1,2, or 3).

2. Select the Calculation Approach

   Companies should use the most accurate calculation approach available to them and that is appropriate for their reporting context. Direct measurement of GHG emissions by monitoring concentration and flow rate is not common. The most common approach for calculating GHG emissions is through the application of documented emission factors. These factors are calculated ratios relating GHG emissions to a proxy measure of activity at an emissions source.

   In many cases, particularly when direct monitoring is either unavailable or prohibitively expensive, accurate emission data can be calculated from fuel use data. Even small users usually know both the amount of fuel consumed and have access to data on the carbon content of the fuel through default carbon content coefficients or through more accurate periodic fuel sampling.

3. Collect Data and Choose Emission Factors
   1. Collect Data: Collect data on energy consumption, fuel usage, transportation, waste generation, and other relevant activities that contribute to greenhouse gas (GHG) emissions within the defined scope. Obtain data from utility bills, fuel receipts, travel logs, waste management records, and other relevant sources. Ensure data quality and accuracy.
   2. Choose Emission Factors: Determine appropriate emission factors to convert the collected activity data into CO2 equivalents (CO2e), which is a common unit for expressing GHG emissions. Emission factors represent the amount of GHG emissions associated with a unit of activity or energy consumption. Use recognized sources such as national emission inventories, industry-specific databases, or emission calculation tools.
4. Apply Calculation Tools

   There are two main categories of calculation tools:

   1. Cross-sector tools that can be applied to different sectors. These include stationary combustion, mobile combustion, HFC use in refrigeration and air conditioning, and measurement and estimation uncertainty.
   2. Sector-specific tools that are designed to calculate emissions in specific sectors such as aluminum, iron and steel, cement, oil and gas, pulp and paper, and office-based organizations.
   GHG protocol hal 44

   Then, calculate and aggregate GHG emissions Based on The Emission Factors

   1. Calculation: Multiply the activity data by the corresponding emission factors to calculate the emissions for each emission source and scope category. Use the formula: Emissions = Activity Data x Emission Factor.
   2. Aggregation: Sum up the emissions from all sources and scopes to obtain the total carbon footprint. Calculate separate footprints for each scope (Scope 1, 2, and 3) and consider their respective contributions to the overall carbon footprint. Express the carbon footprint in metric tons of CO2e.
5. Roll-up Report to Corporate Level

   For internal reporting up to the corporate level, it is recommended that standardized reporting formats be used to ensure that data received from different business units and facilities is comparable, and that internal reporting rules are observed. Standardized formats can significantly reduce the risk of errors. This process can also involve the role of the verifier prior to reporting.

   1. Verification (Optional): Consider engaging a third-party auditor or verifier to review and validate the carbon footprint calculation. This adds credibility and assurance to the reported data. The verifier assesses data accuracy, methodology, and adherence to reporting guidelines.
   2. Reporting: Prepare a comprehensive report that communicates the carbon footprint findings. Include an overview of the methodology, data sources, emission factors used, and boundaries of the assessment. Present the calculated emissions for each scope, along with any relevant contextual information or explanations. Use visualizations, charts, and graphs to enhance understanding.
   3. Analysis and Interpretation: Analyze the carbon footprint data to identify key trends, hotspots, and areas for improvement. Compare the results with previous years' data, industry benchmarks, or established reduction targets. Highlight specific actions and initiatives that the entity is taking to mitigate its emissions and address sustainability goals.

It's worth noting that calculating a carbon footprint can become more complex for large organizations with extensive supply chains or diverse operations.

Consulting with sustainability professionals or carbon accounting experts can also help navigate complexities and ensure accurate reporting. Seeking assistance from sustainability consultants or carbon accounting experts can also be beneficial, especially for organizations that are new to the process.

coming soon.

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Carbon Tax in the World
Carbon tax is a form of carbon pricing, which is a policy tool used by governments to address greenhouse gas emissions and combat climate change. They are designed to place a price on carbon dioxide (CO2) emissions and incentivize industries and individuals to reduce their carbon footprint. The implementation of carbon taxes varies across countries and regions.

Several countries in the world have adopted carbon tax. At least 27 jurisdictions in the world have implemented carbon taxes, either carbon taxes, carbon prices, or fuel charges with various rates.

Sweden, one of the countries that first implemented a carbon tax, namely in 1991 with gradual implementation of tariffs, is now a country with high carbon tax rates. Uruguay, on the other hand, chose to immediately implement a high carbon tax from the start of implementation in 2022.

The main purpose of the Carbon Tax policy is not for budgeting, but one of the fiscal instruments used by the government to reduce emission disposal as well as to develop renewable energy. How the government introduces and develops renewable energy is a step that must be prioritized over carbon pricing policies.Carbon Tax in Indonesia
The Carbon Tax Policy was implemented to support the world's mission to maintain an increase in the average global temperature while mitigating the adverse effects of climate change. The carbon tax will set a price on the sources of emission emitters or high emission products purchased.

In Indonesia, the legal basis for imposing a carbon tax has been regulated in the Tax Harmonization Law which was planned to be implemented in April 2022 but has been delayed until the tax subject and government mechanisms are deemed sufficiently prepared to implement carbon tax.

The carbon tax in Indonesia can be broken down as follows:

1. Purpose
   1. Aims to change the behaviour of economic actors to switch to low carbon green economic activities.
   2. Supporting GHG emission reduction targets in the medium and long term.
   3. Encouraging the development of carbon markets, technological innovation, and investment in renewable energy that is more efficient, low carbon and environmentally friendly.
2. Imposition

   Charged for carbon emissions that have a negative impact on the environment:

   1. Natural resource depreciation;
   2. Environmental pollution; or
   3. Environmental damage.
3. Subject

   The carbon tax subject is an individual or an entity that:

   1. Purchase carbon-containing goods, both domestically and imported;
   2. Carrying out activities that generate carbon emissions, including activities from the energy, agriculture, forestry and land conversion, industry, and waste sectors.
4. Tax Basis

   Carbon tax payable on:

   The total purchase value of goods that contain carbon or activities that produce carbon emissions with certain considerations.

5. Owned

   When carbon tax due is determined:

   1. When purchasing carbon-containing goods;
   2. The end of the calendar year period from activities that produce carbon emissions in a certain amount; or
   3. Other times based on Government Regulations.
6. Tax Rate

   The Carbon Tax Rate is higher or equal to the price of carbon in the Domestic Carbon Market. The lowest carbon tax rate is IDR 30.00 per kg CO2e (IDR 30,000 per tCO2e).

7. Mechanism of Implementation of Tax Rights and Obligations
   
   • Corporate or individual taxpayers who carry out emission-generating activities must pay off carbon taxes by self-assessment. Reporting of tax payments is included in the Annual Tax Return which is reported according to its reporting deadline.
   • Entity WP or Individual Individuals who purchase goods containing carbon will be subject to a carbon tax levy by the seller. This tax collection is reported in the Periodic tax return no later than 20 days after the end of the Tax Period the collection is made.
8. Sanctions for late submission of Tax Return
   • Taxpayers who are late in submitting Periodic SPT, are subject to an administrative sanction of Rp 500,000.
   • Taxpayers who are late in submitting their Annual SPT are subject to an administrative sanction of IDR 1 million.
9. How is the treatment of carbon tax costs against Corporate Income Tax ?

   According to tax provisions, is Carbon Tax deductible in the tax profit/loss report or non-deductible expense?

   Based on HPP Law 7/2021 Tax Cluster Article 6

   'The amount of taxable income for domestic taxpayers and permanent establishments is determined on the basis of gross income minus costs for obtaining, collecting and maintaining income, including taxes except income tax'

   CARBON TAX IS CATEGORIZED AS DEDUCTIBLE EXPENSE

10. Implementation scheme
    
    • The carbon tax policy will follow the existence of a compliance market containing the electricity sub-sector. In this market, every industrial player is given an emission rights allowance (Cap) called PTBAE-PU (Technical Approval of Upper Emission Limit for Business Actors) as a maximum limit for industries to produce carbon.
    • If at the end of the tax year period it turns out that the industry realizes emission disposal exceeds the Cap, then the industry is considered to have an emission deficit and will be subject to a carbon tax levy for the emission deficit.
    • Companies can be exempt from carbon tax if companies buy emission reduction certificates (CERs) to companies whose emission surplus is equal to or greater than the emission deficit.
    • If a company buys emission reduction certificates (CER) at a lower amount than the emission reduction, then the company is subject to a carbon tax equal to the difference between the resulting emission deficit and the purchased CER.
11. Case Problem

    Case 1

    Generating capacity	:	800MW
    Upper emission limit	:	0.913 tCO2/MWh
    Gross electricity production	:	6,100,000 MWh
    Total GHG Emissions	:	5,800,000 tCO2
    Upper emission limit of PT A	:	0.913 x 6,100,000 = 5,569,300 tCO2

    Purchase of Emission Reduction Certificates (SPE):
    230,700 tCO2

    

    Answer: Calculation of Carbon Tax

    Tax Base = Total GHG Emissions – Emission Ceiling

    Tax base = 5,800,000 tCO2 – 5,569,300 tCO2
    = 230,700 tCO2

    Tax payable = Tax Base x Tax Rate
    = 230,700 tCO2 x IDR 30,000/tCO2 = IDR 6,921,000,000

    Reduction (Purchasing carbon certificates) = 0

    Pay Carbon Tax = Tax Owed – Deduction
    = IDR 6,921,000,000 - IDR 0 = IDR 6,921,000,000

    Case 2

    Generating capacity	:	800MW
    Upper emission limit	:	0.913 tCO2/MWh
    Gross electricity production	:	6,100,000 MWh
    Total GHG Emissions	:	5,800,000 tCO2
    Upper emission limit of PT A	:	0.913 x 6,100,000 = 5,569,300 tCO2

    Purchase of Emission Reduction Certificates (SPE) : 0 tCO2

    

    Answer: Calculation of Carbon Tax

    Tax Base = Total GHG Emissions – Emission Ceiling

    Tax Base = 5,800,000 tCO2 – 5,569,300 tCO2
    = 230,700 tCO2 x IDR 30,000/tCO2 = IDR 6,921,000,000

    Tax Payable = DPP x Tax Rate
    = 230,700 tCO2 x IDR 30,000/tCO2 = IDR 6,921,000,000

    Reduction (Purchasing carbon certificates) = 0
    = IDR 6,921,000,000 - IDR 0 = IDR 6,921,000,000

    Pay carbon tax = Tax owed – deduction
    = IDR 6,921,000,000 - IDR 0 = IDR 6,921,000,000

    Case 3

    Generating capacity	:	800MW
    Upper emission limit	:	0.913 tCO2/MWh
    Gross electricity production	:	6,100,000 MWh
    Total GHG Emissions	:	5,800,000 tCO2
    Upper emission limit of PT A	:	0.913 x 6,100,000 = 5,569,300 tCO2

    Purchase of Emission Reduction Certificates (SPE):
    130,700 tCO2

    

    Answer: Calculation of Carbon Tax

    Tax Base = Total GHG Emissions – emission ceiling

    Tax base = 5,800,000 tCO2 – 5,569,300 tCO2
    = 230,700 tCO2

    Tax payable = Tax Base x Tax Rate
    = 230,700 tCO2 x IDR 30,000/tCO2 = IDR 6,921,000,000

    Reduction (Buying carbon certificates)
    = @IDR 30,000/ ton CO2
    130,700 tCO2 x IDR 30,000 = IDR 3,921,000,000

    Pay carbon tax = Tax owed – deduction
    = IDR 6,921,000,000 - IDR 3,921,000,000
    = IDR 3,000,000,000