As countries enact domestic legislation to implement their commitments in respect of their Nationally Determined Contributions (NDCs) under the Paris Agreement, it is likely that voluntary mitigation projects will be subject to greater regulation and scrutiny by host countries. In particular, voluntary mitigation or removal projects are likely to face licensing or authorisation requirements as well as restrictions on international transfers of carbon credits or mitigation outcomes.
SSEK's Denny Rahmansyah, Aldilla Stephanie Suwana and Albertus Jonathan Sukardi have contributed to a report looking at the legislative developments for National Frameworks in Indonesia, India and Malaysia.
Different countries are at different stages of the enactment of their domestic legislation to aid in the implementation and delivery of their NDCs. The extent of regulation and the attractiveness as a potential investment location will vary from country to country depending on the legislative approach adopted. Project proponents must carefully consider a host country's regulatory framework in assessing project risk, investment structure and feasibility.
Denny Rahmansyah, Partner, SSEK: "Indonesia has established both a National Framework and an Authorisation Framework, but both are relatively new and there is still uncertainty around the setting-up of domestic carbon trading schemes. SSEK is pleased to participate in this report and help shed some light on the approaches being taken by Indonesia and the market opportunities here."
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