KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

Industry's Role in Accelerating Decarbonisation

According to the Long-term Strategy for Low Carbon Development 2050, in the industrial sector, there are eight types of industries identified as producing significant greenhouse gas emissions, namely the cement, metal/steel, fertiliser, petrochemical, ceramics, pulp/paper, textile and textile products, and food and beverage industries. When viewed from the source of industrial sector emissions, the emission component from energy use in industry accounts for 64 per cent of the total industrial sector emissions, while emissions from industrial waste are 24 per cent, and the production process and product use (IPPU) is 12 per cent.

Based on data from the Ministry of Industry, decarbonisation efforts have succeeded in reducing industrial sector GHG emissions by 53.9 million tonnes CO2e by 2022. Business as Usual (BaU) baseline emissions without mitigation action were 292.0 million tonnes of CO2-equivalent and actual emissions (industry has taken mitigation action) were 238.05 million tonnes of CO2-equivalent. Meanwhile, the realisation of emission reduction from IPPU in 2022 reached 7.138 million tonnes CO2e or 102 percent of the target.

In the LCCR 2050 LTS document, the Government of Indonesia has developed three scenarios for reducing greenhouse gas emissions for industrial processes or IPPU until 2050. If following the scenario according to the current policy direction, greenhouse gas emissions from industrial processes will reach 70 Mton CO2e in 2050. Meanwhile, if the transition scenario is followed, industrial process greenhouse gas emissions will reach 66 Mton CO2e.

Under the low-carbon development scenario, industrial process greenhouse gas emissions will be reduced to 50.2 Mton CO2e, roughly equivalent to the level of emissions in 2010. For example, by reducing the clinker ratio in cement production and applying more efficient technology in ammonia manufacturing.

Kadin in its efforts always encourages industries in Indonesia to take the initiative to mitigate climate change by reducing greenhouse gas emissions.

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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry