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Will alliances move the lever to decarbonize Indonesia?

Indonesia is the world’s fifth largest emitter of greenhouse gases, with fossil fuels contributing to 93 percent of Indonesia's primary energy demand. 

Samuel Morillon
Singapore
Wed, September 7, 2022 Published on Sep. 6, 2022 Published on 2022-09-06T22:34:10+07:00

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The five chimney stacks of the 4,025 MW Suralaya coal-fired power plant, one of the largest of its kind in Indonesia, towers above Cilegon city in Banten province on Tuesday (24/9/2019). The two shorter stacks channel exhaust from Units 1-4 while the three taller stacks channel exhaust from Units 5-7 of the plant. The five chimney stacks of the 4,025 MW Suralaya coal-fired power plant, one of the largest of its kind in Indonesia, towers above Cilegon city in Banten province on Tuesday (24/9/2019). The two shorter stacks channel exhaust from Units 1-4 while the three taller stacks channel exhaust from Units 5-7 of the plant. (JP/Norman Harsono)
G20 Indonesia 2022

Combatting climate change requires concerted and collective action. In a world filled with climate commitments and sustainable frameworks, how do we ensure that climate rhetoric is put into practice? There’s identifying and recognizing the areas for change, and then there’s empowering and mobilizing to be the change.

Indonesia is the world’s fifth largest emitter of greenhouse gases, with fossil fuels contributing to 93 percent of Indonesia's primary energy demand. Coal (40 percent), oil (35 percent), and natural gas (18 percent) constitutes its three dominant sources

According to the World Bank, the Indonesian economy is projected to accelerate at 5.1 percent in 2022 and 5.3 percent in 2023 due to the release of pent-up demand, improved consumer confidence, and improved terms of trade. We need to focus on the areas where we can make the greatest impact, quickest.

One key area where we can have a significant impact is in the industrial sector, which produces about 25 percent of global gross domestic product and emits about 28 percent of greenhouse gas emissions, according to the International Renewable Energy Agency (IRENA).

As a world-leading energy technology company active throughout the entire energy value chain, around one-sixth of the electricity generated worldwide is based on our technologies. This means we have a massive opportunity to make a positive change and we are dedicated to decarbonizing energy systems around the globe.

This is why on the sidelines of the 17th Group of 20 Investment Forum on Energy Transition in Bali, Indonesia, as a cofounding partner with IRENA, we announced the establishment of the Alliance for Industry Decarbonization.

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The Alliance for Industry Decarbonization was created to help achieve country-specific net-zero goals, foster action for decarbonizing industrial value chains, as well as to enhance understanding of renewables-based solutions and their adoption by industry. This means tailoring a bespoke, best-fit suite of solutions and roadmaps to ensure that every country takes the best approach to decarbonize their industries with the resources it has.

The alliance will also work to strengthen dialogue and coordinate action by industrial stakeholders from across the public and private sectors.

To date, 13 companies representing a diverse cross-section of the global industrial sector have joined the alliance. The wide-ranging interest from these leading industrial companies highlights the importance of collaboration in developing strategies and sharing best practices to advance decarbonization.

The first meeting of senior alliance leaders will take place during COP27, the 27th United Nations Climate Change Conference in Sharm el-Sheikh, Egypt, to define milestones and goals for the group. COP27 is a landmark event bringing together leaders from across industry and government to work together to accelerate global climate action through emissions reduction, scaled-up adaptation efforts and enhanced flows of appropriate finance.

This is hopefully just the first in a series of milestones for this alliance in bringing together global industrial powerhouses to accelerate action on decarbonizing this key and influential sector.

Indonesia has the largest economy in Southeast Asia, with the industrial sector forming the largest contribution to its annual GDP growth. With Indonesia’s leading position in the region, it is primed to take up the baton as one of the decarbonization frontrunners. The Alliance for Industry Decarbonization is bolstered by the endorsement regional partners such as JSW and Tata Steel, whom it is also proud to call its members.

By creating a platform for industry, technology, and knowledge partners to collaborate, we will leverage the skill and expertise of this great and growing alliance to accelerate decarbonization. Is your organization dedicated to decarbonization and are you willing to collaborate with us to achieve a better tomorrow?

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The writer is senior vice president, Siemens Energy Asia Pacific.

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