Faricha Hidayati

Background Achieving the national economic development targets in 2045 would drive capacity expansion in several key industries in Indonesia, such as iron and steel, cement, ammonia, pulp and paper, and textile industries. According to the latest IESR study, the five industries are responsible for about one-third of the national industry emissions in 2020 or about 102 MtCO2.

Opportunities and Challenges to Net-zero Emissions The growth in key industries poses a challenge to the achievement of the Near Zero 2060 scenario. To counter this, a comprehensive portfolio of technologies is proposed for industry decarbonization. Specific strategies for industries like iron and steel, cement, ammonia, pulp and paper, and textiles involve transitioning to cleaner processes, improving energy efficiency, and embracing renewable sources.

An action plan for energy cooperation sets out that Asean seeks to raise the proportion of renewable energy in its energy mix to 23 per cent by 2025. However, as of 2020, renewable energy only takes up 14.2 per cent of its total primary energy supply. Asean needs to seize any available funding opportunity, including climate financing, to close the regional target gap.