Indonesia raises tax targets for energy, mining sectors

Spanish Market: Coal, Electricity
27/03/25

Indonesia is aiming to collect higher non-tax state (PNBP) revenue from its energy and mining sector this year, with the country's energy ministry (ESDM) targeting 254.5 trillion rupiah ($15.4bn) for 2024, an 8.6pc increase on the year.

The ESDM collected Rp269.5 trillion in PBNP payments last year, surpassing the target collection by 15pc. The minerals and coal mining sector was the biggest contributor, with total revenue collected reaching Rp140.5 trillion, accounting for 52pc of the total. PNBP deposits from the mining and energy sector last year surpassed the 2024 target of Rp113.54 trillion, the ESDM said.

The ESDM aims to collect at least Rp124.5 trillion from the mineral and coal mining sector this year. The ESDM said the collections target was set conservatively, and it expects actual remittances to surpass this.

The ESDM is currently eyeing an increase in royalty rates for all mining sectors to help increase collections this year, a move that industry participants have decried as they claim that it will have a detrimental effect on business. Coal mining companies have called for the royalty rates to remain unchanged, especially since regulations that were recently implemented that affected their cashflows. They were referring to the use of the coal reference HBA price as an index for export sales, and the extension of the holding period for export proceeds to one year from three months previously.

The ESDM will run more frequent and stricter compliance audits on mandatory payments to ensure that PNBP collection targets are met, it said. This will be possible given the integration of the e-PNBP digital collections system with the Mineral and Coal Information System (Simbara), an inter-agency digital platform which allows for tighter monitoring of mining company operations, ESDM added.

Miners that fail to remit PNBP collections could be be flagged and penalties ranging from fines to business permit suspensions and terminations could be carried out, the ESDM said.

By Antonio delos Reyes

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28/03/25

Singapore, Vietnam eye greater low-carbon power trade

Singapore, 28 March (Argus) — Singapore and Vietnam have signed a letter of intent (LOI) to enhance collaboration on cross-border electricity trade for the Asean power grid. Under the LOI, the countries will explore raising the targeted capacity of low-carbon electricity imports from Vietnam to Singapore to around 2GW by 2035, announced Singapore's Ministry of Trade and Industry on 26 March. This builds on the previous conditional approval that was granted by Singapore's Energy Market Authority to Sembcorp Utilities in October 2023 to import 1.2GW of low-carbon electricity from Vietnam. The electricity will be transmitted from Vietnam to Singapore via new sub-sea cables of around 1,000km. The Vietnam and Singapore governments will continue to engage interested companies that have credible and commercially viable proposals, said MTI. "This LOI reflects our enhanced level of ambition to support not just cross-border electricity trading between our two countries, but the broader development of a sustainable, inclusive and resilient Asean power grid," said Singapore's second minister for trade and industry Tan See Leng. Singapore aims to import up to 6GW of low-carbon electricity by 2035 , and has signed supply agreements with Malaysia , as well as granted conditional approvals to projects in Indonesia. There have been steps toward the development of the long-awaited Asean power grid, which once established, could help the region source and share electricity regionally. The Lao PDR-Thailand-Malaysia-Singapore power integration project (LTMS-PIP) will be enhanced under its second phase to double the capacity of electricity traded from 100MW to a maximum of 200MW, the EMA announced in September last year. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US mulls cutting funds to H2 hubs outside of GOP states

27/03/25

US mulls cutting funds to H2 hubs outside of GOP states

Houston, 27 March (Argus) — The US Department of Energy (DOE) is considering cutting funding to hydrogen hubs that are located in primarily Democratic states, while sparing those mostly spread across Republican states, according to a list shared with Argus . A table circulating among officials shows hubs that are to receive federal funding labeled as either "cut" or "keep." Out of the seven hubs, only three are set to "keep": HyVelocity, in Texas and Louisiana, the Appalachian hub spanning Ohio, Kentucky and West Virginia and the Heartland hub spread across Minnesota, South Dakota and North Dakota. The hubs that may lose federal support include California's ARCHES; the Pacific Northwest Hydrogen Association (PNWH2) spanning Oregon, Washington and Montana; the Midwest hub encompassing Illinois, Indiana and Michigan, and the Mid-Atlantic hub in Pennsylvania, Delaware, and New Jersey. With the exception of the Midwest hub, most of the hubs facing potential cuts would use renewable and nuclear power to produce hydrogen. Most of the projects in the hubs on the "keep" list would be powered by natural gas and use carbon capture and storage (CCS) facilities to reduce emissions. The DOE did not immediately respond to requests for comment. Fuel Cell and Hydrogen Energy Association (FCHEA) chief executive Frank Wolak said the list came from DOE but cautioned the department's plans are still unclear."We're aware a list has been created that shows four of seven hubs being cut," said Wolak. "We haven't seen anything formal and don't understand exactly what is the DOE intention." Hydrogen hub funding advanced by the administration of former president Joe Biden was expected to come under scrutiny after President Donald Trump paused disbursements and ordered a review of clean-energy initiatives. Federal funding for the hubs grew out of the bipartisan Inflation Reduction Act and the Infrastructure and Investment Jobs Act, which together dedicated $8bn to jump start domestic hydrogen production in industrial clusters from the east to west coasts. The funding was structured to pay out to the hubs over four phases spanning a decade, with disbursements dependent upon projects meeting defined objectives related to operational progress and private-investment commitments. The first tranches to the seven hubs, totaling over $20mn, have been delivered but the list of potential cuts puts the fate of the second phase into doubt. "So far the Trump administration hasn't attempted to claw back that phase-one funding," said Sara Gersen, senior attorney for Earthjustice. "The question is, what happens in 2026 when they try to renew contracts for phase 2?" ARCHES chief executive Angelina Galiteva said the California hub "remains committed to working with our partners to establish a secure, reliable and competitive hydrogen ecosystem". Spokespeople for the others hubs vulnerable to losing federal funds did not immediately respond to requests for comment. However, at least one of the hubs put out a public statement highlighting how its goals align with the administration's objectives. "Many of these opportunities will support rural communities" and "advance American energy independence", the Pacific Northwest hub said in a social media post. Environmental advocates argue that the climate benefits from hydrogen originating from natural gas with CCS, the technology proposed for projects on the "keep" list, evaporate when net emissions are taken into account and do not justify the potentially billions of dollars in federal support they may receive when compared to other decarbonization techniques. "Spending billions of dollars on untested carbon capture technology in applications with no net-climate benefit is a waste of taxpayer money," said Anika Juhn, IEEFA energy data analyst and co-author of the report Blue Hydrogen's Carbon Capture Boondogle . "Building out renewable power infrastructure, improving energy efficiency, and reducing methane leakage from the natural gas system are more cost-effective and proven approaches to a clean energy transition." For now, both fossil-fuel based and renewable energy companies have been lobbying the Trump administration to keep clean energy incentives enacted by the IRA without differentiating how the hydrogen is produced. The potential cut to federal funding is not expected to affect industry support for the most lucrative incentives that come in the form of tax cuts, such as the support that has coalesced around protecting the 45V hydrogen production credit, said Wolak. "I don't see any change to the agenda of 45V, that effort is primary," said Wolak. "I see an effort perhaps arising to define the hubs and the merit of the hubs rising parallel to the 45V effort." FCHEA is advising its members that may be affected by hub funding cuts to contact their congressional representatives, Wolak said. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Several countries have met fossil finance pledge: CSO

27/03/25

Several countries have met fossil finance pledge: CSO

London, 27 March (Argus) — Two-thirds of "high-income" signatories that pledged to end public finance for international fossil fuels have policies in place that realise their commitment, civil society organisation (CSO) Oil Change International said today. Of the 17 "high-income" signatories, 11 are compliant, Oil Change found. They total ten developed countries — Australia, Canada, Denmark, Finland, France, New Zealand, Norway, Spain, Sweden and the UK — as well as EU development institution the European Investment Bank (EIB). The policy details vary, "but all put a complete halt to investments in new oil and gas extraction and LNG infrastructure", Oil Change said. The pledge referred to — the Clean Energy Transition Partnership (CETP) — was launched at the UN Cop 21 climate summit in 2021. It aims to shift international public finance "from the unabated fossil fuel energy sector to the clean energy transition". Signatories commit to ending new direct public support for overseas unabated fossil fuel projects within a year of joining. Other countries have updated policy to restrict fossil fuel financing abroad, but Oil Change has deemed them not in line with the pledge made. Belgium's policy "breaches the end-of-2022 deadline, allowing support for projects that have received promise of insurance by July 2022 into 2023", Oil Change said. The Netherlands allows some projects that requested support in 2022 to be approved in 2023, while there are "energy security exemptions and exemptions for some continued support in low-income countries", Oil Change said. The CSO assessed Germany's policy as containing a number of "major loopholes", including not ruling out public finance for gas infrastructure and gas-fired power plants. And it noted that Italy's policy for its export credit agency "allows fossil fuel finance to continue virtually unhindered". Germany has provided $1.5bn across 11 projects since the 2022 deadline passed, while Italy approved nearly $1.1bn for four projects in 2023, Oil Change said. Oil Change classed Switzerland's policy as "severely misaligned", while Portugal has not submitted a policy and the US has withdrawn from the agreement. The US provided $3.7bn for 12 international fossil fuel projects between end-2022 and end-2024, while it approved $4.7bn for the Mozambique LNG project after leaving the CETP. The CETP now has 40 signatories including five development banks and 35 countries. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

France delays solar subsidy reductions

27/03/25

France delays solar subsidy reductions

London, 27 March (Argus) — Planned cuts in subsidies to building-mounted solar installations will not be made retroactive after the solar sector successfully lobbied the French government, but other changes will still go ahead. The government today published final legislation on changes to feed-in tariffs for new solar sites under 500kW capacity mounted on buildings or above fields or car parks. The legislation is intended to reduce the amount of capacity being built in this sector, as it is less cost-effective than larger sites, the government said. For the 100-500kW segment, for which the government proposed to reduce the tariff retroactively from 1 February, the drop to €95/MWh from €105/MWh will take place for all projects registered from now, rather than since the beginning of February. And a planned monthly reassessment of the tariff — to allow it be to be reduced if too many projects applied — will only kick in from 1 July. But sharp cuts remain on tariffs for smaller installations, and for self-consumption, although they too are no longer retroactive. Project developers on large installations will now also need to provide a €10,000 deposit, intended to reduce the drop-out rate from projects which do not advance to construction. The government intends to put in place a tender mechanism for the 100-500kW sector, replacing the current open window system. It hopes to set this up by September to take over when the cut in tariffs for this sector begin to kick in. Solar actors' reaction to the news was mixed. Renewables association SER welcomed the delay to cuts for the 100-500kW segment. But much uncertainty remains over the volume to be offered and the frequency with which the tenders to replace this sector will take place. There is a risk that the "cliff edge" the association had warned about has just been pushed back to 1 July from 1 February, SER president Jules Nyssen said, if the tenders are not ready to go in time. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK GHG emissions fell by 4pc in 2024

27/03/25

UK GHG emissions fell by 4pc in 2024

London, 27 March (Argus) — The UK's greenhouse gas (GHG) emissions fell by 4pc year-on-year in 2024, provisional data released by the government today show, driven principally by lower gas and coal use in the power and industry sectors. GHG emissions in the UK totalled 371mn t of CO2 equivalent (CO2e) last year, the data show, representing a fall of 54pc compared with 1990 levels. The UK has legally-binding targets to cut its GHG emissions by 68pc by 2030 and 81pc by 2035 against 1990 levels, and to reach net zero emissions by 2050. The electricity sector posted the largest proportional year-on-year fall of 15pc, standing 82pc below 1990 levels at 37.5mn t CO2e. The decline was largely a result of record-high net imports and a 7pc increase in renewable output reducing the call on coal and gas-fired generation, as well as the closure of the country's last coal power plant in September , which together outweighed a marginal rise in overall electricity demand, the government said. Industry posted the next largest emissions decline of 9pc, falling to 48.3mn t CO2e, or 69pc below 1990 levels, as a result of lower coal use across sectors and the closure of iron and steel blast furnaces. Fuel supply emissions fell by 6pc to 28.4mn t CO2e, 63pc below where they stood in 1990. And emissions in the UK's highest-emitting sector, domestic transport, fell by 2pc to 110.1mn t CO2e, 15pc below 1990 levels, as road vehicle diesel use declined. Emissions in the remaining sectors, including agriculture, waste and land use, land use change and forestry (LULUCF), edged down collectively by 1pc to 67.2mn t CO2e, some 50pc below 1990 levels. Only emissions from buildings and product uses increased on the year, rising by 2pc as gas use increased, but still standing 27pc below 1990 levels at 79.8mn t CO2e. UK-based international aviation emissions, which are not included in the overall UK GHG figures, rose by 9pc last year to reach pre-Covid 19 pandemic levels of 26.1mn t CO2e, the data show. But UK-based international shipping emissions edged down by 1pc to 6.2mn t CO2e. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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