Singapore and Indonesia have signed a Letter of Intent (LOI) to collaborate on cross-border carbon capture and storage (CCS). The agreement was signed by Keith Tan, Deputy Secretary (Industry) of the Ministry of Trade and Industry Singapore, and Indonesia Deputy Coordinating Minister for Maritime Sovereignty and Energy, Jodi Mahardi.
As per an official news release, this follows Indonesia’s presidential regulation on CCS issued on 30 January 2024, which will allow CCS operators to set aside storage capacity for international carbon dioxide.
What is CCS?
CCS is the process of capturing, transporting, and storing the carbon dioxide that is produced as a byproduct from other activities, such as power generation. The carbon dioxide that is captured will therefore not be released into the atmosphere. CCS provides a pathway to decarbonise emissions from hard-to-abate sectors such as energy and chemicals, and power.
Internationally, CCS is regarded as a key decarbonisation pathway to achieve global climate mitigation. Both the Intergovernmental Panel on Climate Change (IPCC) and International Energy Agency recognise the role of CCS in achieving net zero emissions by mid-century and mitigate the effects of global warming.
Terms of the LOI
With the LOI, Singapore and Indonesia affirmed the importance of CCS as a decarbonisation pathway, and the potential of CCS to enable sustainable industrial activities and generate new economic opportunities. A working group comprising Singapore and Indonesia government officials will work towards a legally binding bilateral agreement that will enable the cross-border transport and storage of carbon dioxide between Singapore and Indonesia.
Cross-border carbon capture and storage is an emerging solution in Asia, and supports Singapore’s transition towards a low-carbon future. Singapore is the first country to sign an LOI with Indonesia after its presidential regulation to allow cross-border CCS was announced. With this LOI, Singapore and Indonesia can become the pathfinders to catalyse deployment of cross-border CCS projects in Southeast Asia.
Keith Tan, Deputy Secretary (Industry) of the Ministry of Trade and Industry Singapore
Jodi Mahardi said, “This collaboration with Singapore not only amplifies Indonesia’s commitment to leading environmental stewardship in the region but also showcases our proactive approach in harnessing innovative technologies for sustainable growth. The initiative positions Indonesia as a key player in the Southeast Asian CCS landscape, offering a model for cross-border environmental cooperation.”