TF ESC-B20 Gives Earth a New Breath from the Industrial Sector

Bali, November 12, 2022 - Energy, Sustainability & Climate (ESC) - B20 Task Force continues to play a role as a catalyst for the energy transition to achieve Net Zero Emissions (NZE). More than 7 million people die from air pollution, the World Health Organization (WHO) records as a warning. Natural oxygen intake for life-sustaining lungs must be exposed to various fine particles scattered in the air. Even as Earthlings, 91 percent of the world's population has breathed unhealthy air.

How did it happen? Air pollution is a definite answer to this situation. Apart from motorized vehicles, the industrial sector is one of the contributors to these misfortunes that can happen.

Industrial clusters are indeed the prima donna for the economic rotation to provide hope and employment opportunities, where the pool of money flows swiftly in rhythm with the factory machinery rotation. However, the industrial side effect is a painful alarm for its occupants' health.

Reducing this impact is a wise step to stop the worst threats to the Earth. Industrial clusters must be environmentally friendly to provide a new breath for life from an economic and health perspective.

Realizing a green industry (Green Industrial Cluster) is not a fantasy that is difficult to achieve. It only requires justice for humans and the environment.

The Ministry of Industry noted that the Green Industrial Cluster had saved energy of IDR 3.2 trillion and water savings of IDR 169 billion in Indonesia. There would be significant savings to be allocated to handle priority scales if everyone in the world agreed.

The world must respond to climate change warnings because in the last ten years, energy consumption has grown by 47 percent. According to the latest estimates, the CO2 or carbon dioxide annual average reduction will need to increase by at least five times the current level to reach the Paris Agreement target.

One of decarbonization or CO2 reduction's important pillars is energy efficiency and circularity, utilizing developing technologies such as energy-efficient tools and components modernization, as well as flaring recovery systems, or combustion recovery systems adoption.

Indonesian role

Climate change and air quality are human responsibilities in various parts of the world. Indonesia, one of the world's lungs, is no exception. With real climate change warnings, it is necessary to form special discussions at high-level conferences between countries, in the G20 concept.

The G20 momentum in Bali is Indonesia's central role in becoming a bridge for countries ready for a renewable energy transition. The primary goal of the forum for the energy transition discussion is to restore the world's ability to breathe.

The ESC-B20 Task Force has created the first Green Industrial Cluster in Southeast Asia with Jababeka. Attention to decarbonization in the industry signs that a green industry must be realized immediately in a sustainable industrial transition framework.

President Director of PT Pertamina, Nicke Widyawati, also serves as Chair of TF ESC-B20, explained the three final recommendations from TF ESC-B20 in question. Namely, first, accelerating the transition to sustainable energy utilization by reducing carbon intensity from energy utilization. Second, ensuring a just and affordable transition. Third, increasing access and consumers' ability to consume clean and modern energy. Nicke explained that the main point is that Indonesia supports industrial decarbonization, which will accelerate the net zero emissions target for 2060 or sooner.

The Green Industrial Cluster is the first recommendation form regarding the transition to sustainable energy utilization by carrying out the Net Zero Industrial Cluster concept. The COVID-19 pandemic temporarily halted industrial activities was undeniably reduced carbon emissions by 6 percent in 2020, even though this is still far from the carbon reduction target.

The carbon emissions issue in the industrial sector is much affected by the required electrical energy. Electricity needs in the industrial sector in Indonesia are still dominated by coal, and the impact of the Steam Power Plant (PLTU) is air pollution of the combustion products of steam heating.

Steam heat at the PLTU is produced from the coal-burning process. The smoke generated is bad for air quality. Therefore, Indonesia's commitment is to increase its greenhouse gas (GHG) emission reduction target to 31.89 percent on its own and 43.20 percent with international assistance through the Enhanced Nationally Determined Contribution (NDC) document.

Energy utilization is the largest contributor to global Greenhouse Gas stocks, around 73 percent. Moreover, energy utilization in the industry is the highest compared to buildings and transportation usage.

With the global impact of the industrial sector, a step that can be achieved is to create the Net Zero Industrial Cluster concept. Leading industrial factories in the Jababeka Industrial Area in Cikarang-Indonesia consisting of Hitachi, Unilever, and L'Oréal, collaborated to create the first net zero cluster in Southeast Asia.

Not only a discussion output, but the Jababeka factory group also signed a joint statement and announced their plan to become the first net zero industrial cluster in the Jababeka Industrial Area at the Indonesia Net Zero Summit 2022, a side event B20 Indonesia 2022.

Managing Director of Jababeka Infrastructure, Agung Wicaksono, said the Jababeka net zero industrial clusters will be built on the basis that has been planned as an industrial area for more than 30 years with companies from 30 countries to transform in the future, using technology and digital in their operations.

The Jababeka Industrial Estate is an industrial complex for the manufacturing and other operations of more than 2,000 companies from 30 countries, including leading international and local companies. This new industrial cluster brings a coordinated multi-stakeholder approach to achieve industrial decarbonization.

If the cluster pioneer is successful, it will be followed by other areas, which can provide economic efficiency, as well as a new pulse of an environmentally friendly green industry. Challenges will become obstacles for all members of the G20, but that is what the meeting was held for so that the solutions facing the problem will be realized from state leaders' and stakeholders' discussion.

One of the challenges that await is funding because maximizing factory performance with minimal carbon emissions requires modern technology, which is not cheap. The G20 momentum is a bridge opportunity between concepts, ideals, economic principles, and investors ready to deliver a better green economy.

Supporting the development of green industry clusters will also attract more foreign investment in the future. Therefore, it can encourage national economic growth and create jobs.**