{"id":78970,"date":"2023-08-14T01:00:49","date_gmt":"2023-08-14T01:00:49","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2023\/08\/14\/indonesia-is-reportedly-cutting-export-duties-and-vat-to-lure-in-ev-producersplsu-the-us-scaled-up-on-dac\/"},"modified":"2023-08-14T01:00:49","modified_gmt":"2023-08-14T01:00:49","slug":"indonesia-is-reportedly-cutting-export-duties-and-vat-to-lure-in-ev-producersplsu-the-us-scaled-up-on-dac","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2023\/08\/14\/indonesia-is-reportedly-cutting-export-duties-and-vat-to-lure-in-ev-producersplsu-the-us-scaled-up-on-dac\/","title":{"rendered":"Indonesia is reportedly cutting export duties and VAT to lure in EV producersPLSU: The US scaled up on DAC"},"content":{"rendered":"

Indonesia is upping its EV game:<\/strong> Indonesia is reportedly planning additional tax incentives to lure global EV producers to the country, Bloomberg<\/a> reported on Friday, citing people with knowledge of the matter. The sources say the Indonesian government has agreed to offer 0% export duty and VAT exemptions to EV producers that set up shop on shore. They said potential investors will be allowed to import cars to sell domestically, but they must set up a factory within two years or face penalties still being outlined by the government. These decisions are subject to changes before a formal announcement, according to the sources. The incentives come as Indonesia tries to catch up with neighboring countries like Vietnam, the Philippines, and Thailand for a share of the global EV supply chain. It has been in talks with US company Tesla in recent years to set up on shore, while leading EV producer BYD signed an agreement in May to explore investments, although no actual moves on investing are yet in sight.<\/p>\n

A push in the US to scale up DAC:<\/strong> The US Department of Energy (DOE) will provide over USD 1 bn in federal grants for projects in Texas and Louisiana aimed at removing over 2 mn metric tons of carbon emissions annually by scaling up direct air capture (DAC) technology, Reuters<\/a> reported on Friday. The DOE selected Louisiana's Project Cypress run by Batelle, Climeworks Corporation and Heirloom Carbon Technologies and the South Texas DAC Hub proposed by Occidental Petroleum\u2019s subsidiary 1PointFive<\/a> and partners Carbon Engineering and Worley. The move comes under a wider plan to deploy DAC, which could help the country meet its target of neutralizing greenhouse gas emissions by 2050, according to the DOE.<\/p>\n

SOUND SMART-<\/strong> DAC technology refers to the removal of CO2 directly<\/a>from the atmosphere at any location, rather than carbon capture which is generally absorbed at the point of emissions. Carbon dioxide removed under DAC technologies can be permanently stored in deep geological formations or be utilized in various applications.<\/p>\n

DAC could be happening in the region:<\/strong> State oil giant Abu Dhabi National Oil Company (Adnoc) signed a strategic collaboration agreement<\/a> with Occidental Petroleum earlier this month to explore potential investment opportunities in carbon dioxide capture and storage (CCS) hubs in the UAE and US. Under the agreement, Adnoc and Occidental will evaluate the development of direct air capture (DAC) facilities in the UAE \u2014 including what could be the first megaton DAC project outside of the US \u2014 to potentially absorb as much as 1 mn tons of carbon dioxide annually. Adnoc will also explore the possibilities to participate in several DAC and CO2 sequestration facilities in the US that are currently being developed by Occidental\u2019s subsidiary 1PointFive.<\/p>\n

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