TF ESC - B20 Launched Southeast Asia's First Green Industrial Estate

Bali, November 11, 2022 – Task Force Energy, Sustainability and Climate Business 20 (TF ESC-B20) launched the first Green Industrial Estate in Southeast Asia. The birth of green industrial areas shows that industrial decarbonization is important for stand-alone industries and industrial clusters.

Chair of Task Force Energy, Sustainability and Climate Business 20 (TF ESC-B20), Nicke Widyawati, said for Indonesia to support industrial decarbonization, it would accelerate the net zero emissions target in 2060 or sooner.

Supporting green industry cluster development will also attract more foreign investment in the future. Therefore, it encourages national economic growth and creates jobs.

"Industrial Cluster decarbonization allows us to apply an integrated approach to net zero transition," said Nicke Widyawati, Chair of TF ESC-B20, also President Director of Pertamina, in Bali, Friday, November 11, 2022.

According to Nicke, one of the important decarbonization pillars is energy efficiency and circularity, by using emerging technologies such as appliance the modernization of energy-efficient equipment and components, as well as flaring recovery system. Other industrial decarbonization initiatives are the application of Carbon Capture, Utilization, and Storage (CCUS) technology and Nature Based Solutions (NBS) implementation.

“Indonesia has 400 giga tons of potential CO2 storage in our reservoirs for CCUS. We also the second largest global NBS potential in the world,” Nicke added.

Nicke added that energy use in industry is the highest compared to in buildings and the transportation sector. Therefore, one of the TF ESC-B20 recommendations is to increase global cooperation in accelerating the transition to sustainable energy use by reducing carbon intensity in several ways, as well as industrial decarbonization.

For that, said Nicke, energy efficiency is an important decarbonization pillar that contributes to the Net Zero Emission target. Globally, energy efficiency has increased by about 13% (2000 - 2017) and will be 12% higher if it is not stopped.

“For the last ten years, energy consumption grew rapidly by 47%. According to the latest estimates, the annual average CO2 reduction need to increase by five time to reach the Paris Agreement targets. The pace of transition needs to be accelerated,” Nicke said.

According to Nicke, new technologies that accelerating industrial and consumer energy consumption are critical to encouraging efficiency.

In addition, one of the policy recommendations from TF ESC-B20 is to increase global cooperation in accelerating the transition to sustainable energy use.

"We have to push harder the global cooperation that will enable us to accelerate NZE. As our G20 theme, Recover Together, Recover Stronger," Nicke concluded.**