Greenhouse Gas Emissions Can Reduce: Here's Action Needed

You may often hear the term greenhouse gas emissions, especially when discussing climate change issues. This term is indeed one of the main causes of global warming, which has significant impacts on human life, the environment, and the global economy.

In Indonesia, this challenge is becoming increasingly evident as industrial activities, transportation, and fossil-based energy consumption rise. If you are interested in understanding the concept of greenhouse gas emissions comprehensively, read this article until the end.

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Definition of Greenhouse Gas Emissions

Greenhouse gas emissions are the release of gases into the atmosphere that trap heat and cause the greenhouse effect. This effect naturally helps maintain stable temperatures on Earth. 

However, excessive concentrations from human activities trap more heat, leading to global warming. Some of the most influential greenhouse gases include:

• Carbon dioxide (CO₂): Mainly produced from the burning of fossil fuels such as oil, coal, and gas.
• Methane (CH₄): Originates from agriculture, livestock farming, waste management, and energy production.
• Nitrous oxide (N₂O): Often released from fertilizer usage and industrial processes.
• Fluorinated gases: Produced by chemical industrial processes. While present in small amounts, they have a very high warming potential.

In Indonesia, the energy, transportation, and industrial sectors are major sources of greenhouse gas emissions. Growth in motor vehicles, reliance on coal-based electricity, and inefficient energy use present ongoing challenges for stakeholders.

Impact of Greenhouse Gas Emissions

You need to understand that the impact of greenhouse gas emissions is not only about rising temperatures. There is a chain of domino effects that threaten many aspects of life, including:

• Extreme Climate Change: Rising global temperatures alter rainfall patterns, prolong dry seasons, and increase the potential for severe storms or floods.
• Sea Level Rise: Global warming melts polar ice and glaciers, increasing ocean volume and threatening coastal regions.
• Ecosystem Damage: Many species lose their natural habitats, coral reefs experience bleaching, and tropical forests face the risk of drought.
• Health Threats: Extreme heat increases the spread of diseases such as malaria, dengue fever, and respiratory illnesses.
• Economic Losses: Agriculture, fisheries, and tourism are highly vulnerable to climate change. More frequent natural disasters also increase mitigation costs.
  
  

Astra’s Efforts to Reduce Greenhouse Gas Emissions

Astra places this issue as a strategic priority through the Astra 2030 Sustainability Aspirations and the target of Astra Net Zero Scope 1 & 2 by 2050. Astra pursues emission reduction targets through sustainable initiatives guided by the emission control hierarchy, including the following actions:

1. Implementing Energy Efficiency

In 2024, Astra Group reduced Scope 1 and Scope 2 greenhouse gas emissions by 17.41%. This result was achieved through energy efficiency programs, renewable energy adoption, and carbon credit purchases across the value chain.

2. Utilizing Methane Gas Through Methane Capture Installations

In 2024, Astra implemented several initiatives to reduce greenhouse gas emissions, including:

• Building biogas plants (methane capture systems) to prevent methane gas produced by Palm Oil Mill Effluent (POME) from being released into the atmosphere.
• Replacing conventional equipment with electric-powered alternatives, such as hybrid tower lamps and electric buses.
  
  

3. Utilization of Renewable Energy

Astra’s emission reduction initiatives also follow the emission control hierarchy. One of the first steps implemented is increasing the efficiency of energy and fuel used in operational vehicles and stationary machinery. These efforts are then followed by the installation of renewable energy power plants and optimization of their capacity.

4. Purchasing Renewable Energy Certificates (REC) and Carbon Offsets

Several Astra Group companies purchase Renewable Energy Certificates (REC) to support Indonesia’s energy transition. Additionally, Astra Group acquires carbon credits from high-quality projects in the Indonesian Carbon Exchange to further emission-reduction efforts.

These carbon credits are purchased and retired through the National Registry System (SRN) of the Ministry of Environment / Environmental Control Agency of the Republic of Indonesia and are counted as reductions in total Scope 1 and Scope 2 emissions.

Astra Flagship Programs as a Strategy to Reduce Greenhouse Gas Emissions

Several flagship programs implemented by Astra to reduce greenhouse gas emissions include:

1. Emission Reduction Through Biogas Plant Development

To reduce greenhouse gas emissions, PT Astra Agro Lestari Tbk built two biogas plants for methane capture, which began operating in 2024. This technology prevents methane from Palm Oil Mill Effluent (POME) from entering the atmosphere by covering anaerobic ponds in wastewater treatment facilities.

The captured methane gas is then used as an alternative fuel for crude palm oil (CPO) production, while processed POME liquid is used as an organic fertilizer.

This technology has resulted in a reduction of 42,694 tCO₂-eq in emissions at PT Astra Agro Lestari Tbk. The company is continuing to invest in additional biogas plants to support its goal of reducing emissions by 30% from the 2019 baseline by 2030.

2. Commitment to the Science-Based Targets Initiative (SBTi)

In 2024, PT Astra Graphia Tbk committed to aligning its emission-reduction targets with the Science Based Targets initiative (SBTi). This demonstrates the company’s support for science-based climate action and global efforts to limit temperature increases to 1.5°C while advancing a low-carbon economy.

Currently, PT Astra Graphia Tbk is preparing for target validation in 2025, which will ensure that its emission-reduction targets comply with internationally recognized standards.

This step also enhances transparency and strengthens the company’s credibility among stakeholders.

3. Energy Efficiency in Equipment by PT Pamapersada Nusantara

PT Pamapersada Nusantara implemented energy efficiency programs for operational equipment as part of its commitment to reducing greenhouse gas emissions from business activities. This program consists of three main strategic steps:

• Transitioning fuel usage from B30 to B35 biodiesel to improve energy efficiency.
• Replacing production and supporting equipment with electric-powered alternatives, such as hybrid tower lamps and electric buses.
• Implementing engineering improvements and routine maintenance to ensure optimal performance of production, transportation, and supporting equipment.

As of 2024, this program has contributed to 95,185 tCO₂-eq in emission reductions at PT Pamapersada Nusantara.

ALSO READ: Reducing Greenhouse Gas Emissions, Astra UD Trucks Implements Carbon Offset Program

Flagship Programs as Astra’s Real Contribution to Reducing the Impact of Greenhouse Gas Emissions

Greenhouse gas emissions are among the greatest challenges of this century, impacting the environment, health, economy, and human sustainability. Addressing this issue requires collaboration among governments, companies, and individuals.

Astra has demonstrated that serious commitment, measurable targets, and real actions can generate significant change. With a 17.41% reduction in emissions in 2024 and major investments in renewable energy, Astra provides an example of how companies in Indonesia can be part of the solution.

To learn more about Astra’s progress toward a low-carbon future, visit the Astra Sustainability Report page and see how you can contribute to the journey toward Net Zero 2050.