Our projects
Tackling emissions from Indonesia‘s heavy industry
Heavy industries – such as steel, cement, iron – are huge contributors to climate change. Indonesia is a major producer of many heavy industry products. And emissions from heavy industry account for up to 20 per cent of the country’s greenhouse gas emissions. Without urgent action, as demand for these products grows, so will their climate impact. Despite this, Indonesia does not have a coherent strategy to reduce emissions from industry.
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Why is it important?
30%
Industry and industrial processes are responsible for 29.4% of climate pollution globally
70%
of emissions from heavy industry in Indonesia come from five sectors: cement, iron and steel, textile, pulp and paper, and ammonia
Top 10
Indonesia is a top producer of industrial materials. It is the 6th biggest producer of ammonia, 8th in cement, and 9th in pulp & paper
2050
Indonesia’s Ministry of Industry has verbally pledged a net-zero commitment from industry in 2050
We’re working with civil society and the private sector in Indonesia to drive action and put the country’s industrial sectors on a pathway to net-zero.
The Challenges
Heavy industry is inherently very energy intensive. It relies heavily on fossil fuels, such as coal. But demand for industrial materials is expected to continue to grow, driven by economic development needs and the rapid build out of low-carbon solutions such as renewables, batteries and electric vehicles.
Indonesia is a major producer of industrial materials, driven largely by five sectors: steel, cement, iron, anomia and pulp and paper. Yet, despite several pledges by the Indonesian government to cut emissions, it lacks a clear regulatory framework to tackle emissions from heavy industry. It does not have a unified target and lacks the incentives needed to drive private sector action, and a consistent approach to measuring and reporting.
While it remains challenging for companies to procure and adopt technology to lower industrial emissions, the biggest challenge is access to finance. There is a need for clear policy support to de-risk investment, and increased awareness among financial institutions around industrial decarbonisation technologies.
In the last decade, there has been a sense of urgency around climate change, including ambitious narratives around the need for increased renewables and the end of coal. However, these narratives have not yet moved into other sectors, particularly industrial processes. More needs to be done to shift the discourse in this space and increase the sense of urgency.
Do you want to collaborate with us on heavy industry?
Get in touch to learn more and explore opportunities at ferth@climatecatalyst.org.
