Signing of Emission Reduction Agreement

PT. Musim Mas and the Danish Ministry of Climate and Energy sign Emission Reductions Purchase Agreement (ERPA) in Jakarta.

At the Embassy of Denmark in Jakarta representatives from PT. Musim Mas and the Danish Ambassador – Mr. Børge Petersen – representing the Danish Ministry of Climate and Energy, recently signed an ERPA – or “Emission Reductions Purchase Agreement”.

The agreement means that Musim Mas is obliged to deliver – and Denmark to buy substantial amount of CER’s corresponding to CO2 NOT emitted to the atmosphere because of utilisation of methane recovered from POME at the Musim Mas Palm Oil Mill at Pangkalan Lesung, Riau. The Methane is used for generation of electricity for internal use in the mill/plantation and will as such replace fossil fuel otherwise used for that purpose.

The agreement is in line with Memorandum Of Understanding (MOU) between Republic of Indonesia and Denmark on purchase of CER´s under the Clean Development Mechanism (CDM) scheme in connection with the Kyoto Protocol in order to mitigate climate-changes.

Indonesia is a focal country for Denmark´s purchase of CERs in order to meet Denmark’s obligations on C02-reductions before 2012 according to the Kyoto protocol. But the cooperation on CO2 reductions should also be seen as Denmark’s support to Indonesia in meeting Indonesia’s own goal of a 26% emission reduction.

The Indonesian-Danish CDM projects are dealing with “fuel-shifts”: from fossil fuel based energy generation to bio-mass- or biogas-based energy generation. Denmark has for decades developed and used technologies for these purposes and will be able to deliver technology solutions as well capacity building to support Indonesia´s own development towards cleaner technologies, a cleaner environment and mitigating climate changes.


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