Jakarta—Industry in Indonesia is one of the main sectors contributing to carbon emissions. In 2022, emissions recorded a 30 per cent increase compared to the previous year, reaching more than 400 million tons of carbon dioxide equivalent, according to data from the Indonesia Energy Transition Outlook (IETO) 2024.
Efforts to decarbonise this sector are crucial to reducing emissions and achieving the target of limiting global temperature rise below 1.5 degrees Celsius.
The head of the Center for Green Industry, Ministry of Industry, Apit Pria Nugraha, emphasised the importance of consistent and inclusive emission reduction policies in the workshop “Capacity Building for Industry, Academia and Government Towards Green and Sustainable Industry”, organised by the Institute for Essential Services Reform (IESR) and the Ministry of Industry on Thursday, June 20, 2024.
“The industrial sector plays a crucial role in the economy but produces significant greenhouse gas emissions. Emission reduction policies must be implemented consistently, inclusively, and robustly,” he said, adding that the government is preparing various regulations related to decarbonisation, such as a carbon trading roadmap, Minister of Industry Regulation on carbon trading, carbon trading ceiling, carbon trading governance, and carbon trading integrated information system.
IESR’s Energy Transformation Program Manager, Deon Arinaldo, explained that most of the industrial sector’s emissions come from energy use, which is dominated by coal. By 2022, energy consumption will account for more than 60 per cent of industrial greenhouse gas emissions, while industrial waste will account for more than half.
The IESR study identified five main pillars of industrial decarbonisation: resource efficiency, energy efficiency, industrial electrification, use of low-carbon fuels and raw materials, and utilization of carbon capture and storage technology (CCS/CCUS). Implementing these pillars requires considering economic and technical aspects, with government support through incentives and research.
IESR’s analysis shows that implementing the five pillars of decarbonization can provide significant economic benefits. Through energy and resource efficiency, industries can save up to 30 per cent on production costs, and costs for non-reusable production materials can be reduced by up to 66 per cent. (Hartatik)
