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27 March 2024

On 15 February 2024, Singapore and Indonesia announced that they have signed a letter of intent (“LoI”) to collaborate on cross-border carbon capture and storage (“CCS”), with work underway for a legally binding agreement to enable transport and storage of carbon dioxide between both countries. This comes after Indonesia issued Presidential Regulation 14/2024 on 30 January 2024 to allow CCS operators to set aside 30% of their storage capacity for imported carbon dioxide. For more information on Presidential Regulation 14/2024, please read “” by our associate firm in Indonesia, AGI Legal.?

CCS is the process of capturing, transporting, and storing the carbon dioxide that is produced as a byproduct from other activities, such as power generation. The carbon dioxide that is captured will therefore not be released into the atmosphere. CCS provides a pathway to decarbonise emissions from hard-to-abate sectors such as energy and chemicals, and power.?

The LoI affirms the importance of CCS to both countries as a decarbonisation pathway, and underscores the potential of CCS to enable sustainable industrial activities and generate new economic opportunities. A working group comprising Singapore and Indonesia government officials will work towards a legally binding bilateral agreement that will enable the cross-border transport and storage of carbon dioxide between Singapore and Indonesia.?

Reference materials?

The on this development is available from the website of the Singapore Ministry of Trade and Industry .