Reduce GHG Emissions in the Major Industries
Climate change is a strategic and development challenge facing Indonesia. The Government of Indonesia (GOI) recognizes climate change as a key economic development and planning issue. In fact, it has committed to a reduction in greenhouse gas emissions of 26% from business-as-usual (BAU) by 2020 at the 2009 Copenhagen Conference of parties (COP) of the UNFCCC. The GOI also acknowledges that early action to address mitigation and adaptation concerns will be strategically and economically beneficial for Indonesia. As one important step on mitigation, the GOI has embarked on a Low Carbon Development Options Study as an opportunity to evaluate and develop strategic options to reduce emissions intensity without compromising development objectives. The first phase of low carbon work showed that Indonesia is a relatively large greenhouse gas (GHG) emitter, especially from forests and land use, but also from fast growing fossil fuel use.
The Indonesian manufacturing sector is one of the nation’s largest sources of fossil-fuel derived greenhouse gas (GHG) emissions, and continues to grow. Overall, manufacturing is responsible for over 50 percent of Indonesia’s fossil-fuel emissions (including electricity use within manufacturing) and is continuing to grow at the rate of 6 – 7 % every year. Most of these sub- sectors are key to the current or future Indonesian economy as measured by a variety of statistics including their value added (textile, garments, transportation equipment, food and beverage), annual growth rate (auto parts, non-metallic minerals), or economic multipliers (food and beverage, textiles).
Leapfrog towards Efficiency And Progress through Low Carbon Economy in Indonesia (LEAP Indonesia) is a Public Private Partnership Project jointly funded and implemented by PT. TÜV NORD Indonesia and DEG will target the cement, iron and steel, textile, palm oil and power industries, which are the largest emitter of GHG. The PPP will work towards initiating a low carbon economy in Indonesia through awareness raising, capacity building and pilot implementation.