Writer: Jonathan PHILLIP, Tiantai LING
Verifier: George Kiongson
Mt. Stonegate Jakarta team successfully conducted a seminar on August 28th, 2024, titled “Corporate Decarbonization Strategies – Leading the Charge for a Sustainable Future.” The event brought together industry leaders, policymakers, and sustainability experts to discuss the latest trends, challenges, and opportunities in corporate decarbonization. With support from RE100 Climate Group, the Indonesia Center for Renewable Energy Studies (ICRES), and ARMA Law, the seminar featured four keynote presentations that provided deep insights into Indonesia’s renewable energy landscape, global initiatives for renewable energy consumption, policy frameworks for corporate decarbonization, and innovative market instruments for corporate decarbonization in Indonesia. This seminar highlighted the critical steps that corporations in Indonesia must take to contribute to a sustainable future.
Toby Walker from Climate Group RE100 began the seminar by discussing Indonesia’s role as a priority market for global renewable energy initiatives. He noted that despite the country’s vast renewable energy potential, current adoption among RE100 members remains limited, presenting a significant opportunity for growth. Mr. Walker encouraged local companies to join RE100, emphasizing that participation would enhance their market competitiveness and contribute to the global transition to sustainable energy. He also underscored the importance of collaboration between Indonesian companies and international initiatives.
Paul Butarbutar, co-founder of ICRES, followed by emphasizing the urgent need for deep decarbonization in Indonesia’s energy sector, which remains heavily reliant on fossil fuels. Drawing from the 6th IPCC Assessment Report, he highlighted the significant GHG emissions driven by fossil fuel consumption and stressed the importance of accelerating renewable energy development to meet the 1.5°C global temperature target. He pointed out that while progress has been slow, there is substantial potential for renewable energy to become the dominant energy source in Indonesia, with a government net-zero target set for 2060 or earlier.
Rudi Bachtiar, Founding Partner at ARMA Law, provided a comprehensive overview of Indonesia’s policy and regulatory landscape for corporate decarbonization. He detailed the country’s commitments under the Paris Agreement, specifically its Nationally Determined Contributions (NDCs), which aim for a 29% reduction in GHG emissions, with the possibility of reaching 41% with international support. Mr. Bachtiar highlighted the significance of carbon pricing mechanisms, such as carbon taxes and emissions trading, in driving corporate decarbonization. He also outlined the Emission Trading Scheme (ETS) under Presidential Regulations No. 98/2021, which facilitates the trading of carbon credits among companies, and discussed upcoming regulations aimed at strengthening the country’s carbon market infrastructure.
William Daniel from Mt. Stonegate concluded the seminar by exploring innovative market instruments that support corporate decarbonization in Indonesia. He emphasized the role of the ETS in enabling companies to trade carbon credits to meet their emission reduction targets. Daniel also highlighted the importance of voluntary carbon markets and Energy Attribute Certificates (EACs) in tracking and verifying renewable energy usage, which is crucial for improving companies' Environmental, Social, and Governance (ESG) performance. He urged companies to leverage these market instruments not only to comply with regulatory requirements but also to position themselves as leaders in corporate sustainability.
In the final segment, participants engaged in “Green Quest,” a Monopoly-style game developed in-house by Mt. Stonegate. The game simulates the challenges and opportunities companies may face and the decisions and strategies they must adopt in their sustainability journey. Participants also gained insights into market instruments for achieving emission reductions and learned about renowned global climate initiatives.
The seminar offered valuable insights into corporate decarbonization strategies for companies in Indonesia, emphasizing the importance of aligning with global initiatives, understanding regulatory frameworks, and leveraging market instruments. By taking these steps, Indonesian companies can play a significant role in achieving global climate goals while boosting their competitiveness. To learn more about Indonesia’s evolving sustainability landscape and stay informed about future seminars and events from Mt. Stonegate, visit our website and subscribe to our newsletter. Our expertise can help you navigate the path to a greener, more competitive future.
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