The Center for Energy Policy at the Bandung Institute of Technology (ITB) noted that the energy-consuming industries as well as the biggest contributors to greenhouse gases are cement, petrochemicals and fertilizers, pulp and paper, and textiles. Head of the Bandung Institute of Technology (ITB) Energy Policy Center Retno Gumilang Dewi assessed that the application of green industry standards in sectors that contribute significantly to greenhouse gas emissions is considered more effective than the carbon tax policy. He said on the one hand a carbon tax could encourage cuts in greenhouse gas emissions, as well as increase government revenues, and encourage investment towards clean energy in the industrial sector.

But on the other hand, he also highlighted the risk of a significant increase in production costs due to the imposition of a carbon tax.

Based on his records, the implementation of a carbon tax will increase production costs in each industrial sector. In the integrated pulp industry, the increase could reach IDR 26,416 per ton of product.

Meanwhile in the paper industry, it can reach Rp. 28,406 per ton of product. Meanwhile, the increase in electricity prices due to the carbon tax at the power plant is IDR 28,406 per ton of product.

Then in the textile industry, the increase in production can reach 0.25 percent to 5 percent, with the total textile and textile product (TPT) industry reaching 9.25 percent.

"The implementation of the green industry can be accelerated in industries that contribute significantly to greenhouse gas emissions. I think it will be much more effective than a carbon tax," said Retno in a webinar, Friday (28/1/2022).

Unfortunately, the implementation of green industry standards so far by the Ministry of Industry has not been mandatory. In addition, Retno pushed for green industry standards to also cover the types of energy that should be used by industry, instead of just regulating the efficiency of fuel use.