FGD I examined Indonesia’s goals and early progress on the implementation of the ETS trial and different international approaches to designing and implementing ETS schemes in the power sector. During the discussion, country experts from China and Korea shared their respective countries’ experiences designing and implementing such schemes as well as key lessons learned.

FGD II looked at how other ETS schemes have addressed some early challenges in the design and implementation phase including determining the emissions cap, how the price will be determined and evolve, and the options of recycling the revenues raised from the scheme. Experts from the European Union, Poland and the United Kingdom shared their experience in technical design, monitoring ETS development and stimulating industry participation.

FGD III focused on implementation at the ETS pilot and early phases with a focus on design elements that can enhance participation. It also examined the impact of a carbon tax on the design and operation of the ETS. During the discussion, country experts from China, the United Kingdom and the European Union shared their insights as well as private sector perspectives on carbon tax versus ETS in carbon pricing policies.

FGD IV discussed regulation and the role of the financial sector in Indonesia’s emissions trading scheme and also looked at linkages to international carbon markets. The discussion included an overview of the Paris Agreement Rulebook as outlined under Article 6.  During the discussion, country experts from South Africa, Japan, New Zealand and South Korea discussed together with different Indonesian government agencies their experience on linking with other carbon markets, including institutional arrangements, monitoring and verification systems, and certification of carbon offsets.