Indonesia and Singapore are in early talks to cooperate on carbon capture and storage, green electricity exports, and industrial estates. Singapore lacks the geology for underground CO2 storage, so it is looking to ship captured carbon to Indonesia, which has an estimated 400 gigatonnes of storage capacity in depleted oil and gas fields and saline aquifers. Indonesia is also trying to cut its reliance on coal and deforestation, with a net zero target of 2060. The main barrier is cost. CCS in Indonesia runs between $35 and $60 per tonne of CO2, according to Norton Rose Fulbright. Investors are waiting for tax incentives, subsidies, and clearer regulations before committing. Cross-border CO2 transport also raises unresolved legal questions about ownership and liability if leaks occur. Both countries need stable carbon pricing to make the numbers work. Singapore has already started CCS feasibility studies for its power sector and signed a CCS cooperation deal with Japan last year. If Indonesia and Singapore can resolve the cost and legal issues, this could become a template for regional CCS partnerships. But the gap between ambition and signed projects remains wide.
