What is The Impact of Electric Vehicle Usage on The Government’s Carbon Market Program?
President of Indonesia, Joko Widodo (Jokowi), officially launched and opened the Inaugural Trading of the Indonesian Carbon Exchange at the Main Hall of the Indonesia Stock Exchange (BEI) in Jakarta on September 26, 2023. The President stated that the existence of the Indonesian Carbon Exchange is a tangible contribution by Indonesia to address the impacts of climate change. So, what is the connection with the electrification program and electric vehicles (EVs) themselves?
President Jokowi revealed that Indonesia has extraordinary potential in nature-based solutions and is the only country where approximately 60 percent of its carbon emissions reduction comes from the natural sector. According to the President’s records, there is approximately 1 gigaton of carbon dioxide (CO2) potential carbon credits that can be captured
The carbon market and carbon trading have a close relationship with the electrification movement in the context of transitioning from conventional motorcycles to electric motorcycles. This connection is related to efforts to reduce greenhouse gas emissions and address climate change.
Here are several ways in which the carbon market, carbon trading, and the electrification movement are interconnected:
- Driver of Electrification: Carbon market and carbon trading systems create economic incentives for companies and individuals to reduce their carbon emissions. In the context of motorcycle use, this can encourage manufacturers and consumers to shift from conventional motorcycles that use fossil fuels to electric motorcycles with lower or even zero carbon emissions.
- Promotion of Eco-Friendly Vehicles: Governments and regulatory bodies can use revenue from carbon trading to support the promotion and development of eco-friendly vehicles, including electric motorcycles. This may include fiscal incentives such as tax exemptions or subsidies for the purchase of electric motorcycles.
- Supporting Infrastructure: Funds from carbon trading can also be used to build the necessary charging infrastructure for electric vehicles, including charging stations for electric motorcycles. This makes it more convenient and practical for electric motorcycle riders to charge their vehicles.
- Transport Emissions Reduction: As part of efforts to reduce transportation emissions, electrifying motorcycles is a crucial step. By switching to electric motorcycles, riders can reduce direct emissions from their vehicles, which will have a positive impact on air quality and contribute to mitigating climate change.
- Achieving Carbon Targets: Many countries and major cities have ambitious carbon reduction targets. Electrifying motorcycles is one way to meet these targets, and governments can use revenue from carbon trading to support these initiatives.
In summary, there is a strong connection between the carbon market, carbon trading, and the electrification movement in the context of motorcycles. These efforts all aim to reduce carbon emissions from transportation, improve air quality, and mitigate the impacts of climate change through the use of cleaner electric vehicles.