Danantara faces risks in carbon capture projects


This risk-reward imbalance presents a dilemma for Danantara. — The Jakarta Post

JAKARTA: Indonesia’s state asset fund Danantara faces significant financial risks and must exercise caution as it considers carbon capture and storage (CCS) projects, as the current carbon price offers a negligible incentive against costs that can be 50 times higher, a leading energy analyst warns.

Putra Adhiguna, managing director of the Energy Shift Institute, highlighted the stark economic challenges of CCS/CCUS, pointing to global projects frequently underperform and carry long-term liability concerns.

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