Stranded assets, carbon risks and coal mines in Indonesia
Sonny Mumbunan | Research Center for Climate Change University of Indonesia (RCCC UI)
- Venue: Pusat Penelitian Ekonomi, Lembaga Ilmu Pengetahuan Indonesia (LIPI). Widya Graha LIPI, 5th floor, Jakarta.
- Date, time: 8 September 2016, at 9 a.m.
Coal mines are prone to stranded assets in which coal reserves suffer loss of value or turn into liabilities because of carbon risks. This paper applies a cash cost approach and estimates the value of stranded assets of coal industry in Indonesia, one of the world’s leading coal producers. It also attempts to reflect the findings upon (a) extension of domestic consumption in response to declining international prices; (b) revenues captured by the state; and (c) contribution to emissions reduction.
Key words: Stranded assets, carbon risks, nationally determined contribution (NDC)