Abstract

The Indonesian government has followed up the Paris Agreement with Law No. 16 of 2016 by setting an ambitious emission reduction target of 29% by 2030, and this figure could even increase to 41% if supported by international assistance. In line with this, mitigation efforts are carried out in the energy sector. Especially in the energy sector, it can have a significant impact when compared to other sectors due to an increase in energy demand, rapid economic growth, and an increase in living standards that will push the rate of emission growth in the energy sector up to 6. 7% per year. The bottom-up AIM/end-use energy model can select the technologies in the energy sector that are optimal in reducing emissions and costs as a long-term strategy in developing national low-carbon technology. This model can use the Marginal Abatement Cost (MAC) approach to evaluate the potential for GHG emission reductions by adding a certain amount of costs for each selected technology in the target year compared to the reference technology in the baseline scenario. In this study, three scenarios were used as mitigation actions, namely CM1, CM2, CM3. The Abatement Cost Curve tools with an assumed optimum tax value of 100 USD/ton CO2eq, in the highest GHG emission reduction potential, are in the CM3 scenario, which has the most significant reduction potential, and the mitigation costs are not much different from other scenarios. For example, PLTU – supercritical, which can reduce a significant GHG of 37.39 Mtoe CO2eq with an emission reduction cost of -23.66 $/Mtoe CO2eq.

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