POLICY
JAKARTA (FORESTHINTS.NEWS) - Indonesian Environment and Forestry Minister Professor Siti Nurbaya delivered a keynote speech by video (Nov 24) at the Third International Convention on Indonesia Upstream Oil and Gas 2022, held in Nusa Dua, Bali, titled ‘Energy Development in Sustainable Environment Perspectives’.
Addressing members of the country’s oil and gas industry as well as dignitaries such as Indonesia’s Coordinating Minister of Economic Affairs and the Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), the Minister used the speech to appeal for the oil and gas industry to step up mitigation actions to help Indonesia achieve its NDC targets, including net-zero emission by 2060 or sooner.
The event was convened by SKK Migas to look at developments in the Indonesian energy sector, especially as they relate to climate change adaptation efforts and the energy transition measures integral to this.
Minister Nurbaya reminded the audience of the recommendations made in the reports of the Intergovernmental Panel on Climate Change (IPCC) about restricting global temperature rises to 1.5° C and the sustained lowering of greenhouse gas emissions this will entail, including reductions of 45% and 43% in carbon dioxide emissions relative to the 2010 and 2019 levels respectively, as the world heads towards net zero emission in the middle of the century.
The Minister highlighted the substantial role played in emissions by fossil fuel usage. “In IPCC AR6, global net anthropogenic emissions in 2019 were 59 Gton, 64% of which was contributed from fuel combustion and industry. With reference to the International Energy Agency/IEA (2022), 42% of global GHG emissions in the energy sector in 2018 came from coal, 37% from oil and 21% from natural gas.”
To reduce the dependence on fossil fuels, the Minister continued, the IPCC has advised countries to roll back their fossil fuel infrastructure, backed up by the decision taken at COP26 in Glasgow which mandated countries to transition towards low-emission energy systems, the phasedown of unabated coal power, and the phase-out of inefficient fossil fuel subsidies.
Significant role
Minister Nurbaya acknowledged the significant role still played by the oil and gas industry in Indonesia, as is the case worldwide, in providing energy services, particularly for transportation and industry and especially as populations and economies continue to grow.
She nonetheless noted that the IEA assumes, under the Net Zero Emissions (NZE) scenario, that the global demand for oil will drop substantially by 2030 as, among other things, sales of electric vehicles rise rapidly.
Minister Nurbaya pointed out some discrepancies between Indonesia’s Long-term Strategy for Low Carbon and Climate Resilience 2050 (LTS-LCCR 2050) and the National Energy Policy in terms of the reduced contributions from oil and gas needed to reach NZE by 2060 or sooner.
She explained, however, that the overall trend as we move towards 2050 and beyond - as backed up by the IEA’s study on the Road Map to Indonesia’s NZE in the Announced Pledges Scenario - would see a much lower share of oil, especially, in the national energy mix with slightly greater demand for natural gas comparatively due to its use in non‐emitting processes, including hydrogen production with carbon capture, utilization and storage (CCUS).
Minister Nurbaya went on to share with the audience some figures reflecting the significant contribution from Indonesia’s energy sector, including its oil and gas industry, to the country’s total GHG emissions.
“In order for us to move forward from this level to the requirement of NZE in 2060 or sooner, oil and gas, as a high carbon intensive sector, is also under increased pressure to inevitably respond appropriately and in a timely manner in transitioning to decarbonisation,” she asserted.
Short-term mitigation actions
The Minister also expressed her appreciation for those oil and gas companies that have responded to the collective climate challenges Indonesia faces by declaring or taking measures aimed at decarbonization by 2050, while also lauding companies which have shifted their overall business process, including technical and financial aspects, to adapt to the new energy paradigm.
“Some efforts on exploring the deployment of CCS and CCUS, as also recommended by IPCC AR6 Working Group III, have been started in line with the process of the Draft Ministerial Regulation of the Minister of Energy and Mineral Resources on CCS/CCUS,” she explained.
Minister Nurbaya used the occasion to urge both SKK Migas as well as oil and gas companies to continue with discussions about the possibility of incorporating short-term mitigation actions – some of which she specified - into the upcoming Second NDC that the Government is planning to prepare.
“You may be aware that the oil and gas GHG baseline and emissions level have been included in our NDCs, but the mitigation actions only included the conversion of kerosene to LPG. There are some other potential actions, such as zero routine flaring and mitigations on methane emission, as well as mitigation actions outside the upstream oil and gas industry’s production process, such as green building and reforestation,” the Minister elaborated.
Having commended the Convention for the opportunity it provided its participants to share, learn and strengthen cooperation aimed at enhancing the move towards decarbonization in the oil and gas industry, the Minister called for the replication of energy transition mechanisms developed for coal power generation in this industry’s transition.
Minister Nurbaya did recognize, however, some of the complexities involved in shifting to a new way of operating “Some issues related to just transition, stranded assets, and access to more affordable energy sources require more efforts in order to undergo these challenges.”
“Implementation of this plan is very challenging as it requires policies and the transformation of technical and financial systems, including new approaches for accessing conventional funding sources, innovative financial instruments, and new investment schemes,” she conceded.
The Minister concluded her remarks by encouraging further cross-sector collaborations to further integrate oil and gas into becoming a pivotal part of Indonesia’s efforts to meet its NDC targets through innovative methods and initiatives.
“My expectation from this event is to continue our journey in the current challenging and dynamic global energy system by optimizing cooperation between the government and private sector at operational stages to include the role of the oil and gas industry in Indonesia’s NDC, including exploring the potential of CCS and CCUS.”
RELATED STORIES
POLICY
JAKARTA (FORESTHINTS.NEWS) - Indonesian Environment and Forestry Minister Professor Siti Nurbaya delivered a keynote speech by video (Nov 24) at the Third International Convention on Indonesia Upstream Oil and Gas 2022, held in Nusa Dua, Bali, titled ‘Energy Development in Sustainable Environment Perspectives’.
Addressing members of the country’s oil and gas industry as well as dignitaries such as Indonesia’s Coordinating Minister of Economic Affairs and the Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), the Minister used the speech to appeal for the oil and gas industry to step up mitigation actions to help Indonesia achieve its NDC targets, including net-zero emission by 2060 or sooner.
The event was convened by SKK Migas to look at developments in the Indonesian energy sector, especially as they relate to climate change adaptation efforts and the energy transition measures integral to this.
Minister Nurbaya reminded the audience of the recommendations made in the reports of the Intergovernmental Panel on Climate Change (IPCC) about restricting global temperature rises to 1.5° C and the sustained lowering of greenhouse gas emissions this will entail, including reductions of 45% and 43% in carbon dioxide emissions relative to the 2010 and 2019 levels respectively, as the world heads towards net zero emission in the middle of the century.
The Minister highlighted the substantial role played in emissions by fossil fuel usage. “In IPCC AR6, global net anthropogenic emissions in 2019 were 59 Gton, 64% of which was contributed from fuel combustion and industry. With reference to the International Energy Agency/IEA (2022), 42% of global GHG emissions in the energy sector in 2018 came from coal, 37% from oil and 21% from natural gas.”
To reduce the dependence on fossil fuels, the Minister continued, the IPCC has advised countries to roll back their fossil fuel infrastructure, backed up by the decision taken at COP26 in Glasgow which mandated countries to transition towards low-emission energy systems, the phasedown of unabated coal power, and the phase-out of inefficient fossil fuel subsidies.
Significant role
Minister Nurbaya acknowledged the significant role still played by the oil and gas industry in Indonesia, as is the case worldwide, in providing energy services, particularly for transportation and industry and especially as populations and economies continue to grow.
She nonetheless noted that the IEA assumes, under the Net Zero Emissions (NZE) scenario, that the global demand for oil will drop substantially by 2030 as, among other things, sales of electric vehicles rise rapidly.
Minister Nurbaya pointed out some discrepancies between Indonesia’s Long-term Strategy for Low Carbon and Climate Resilience 2050 (LTS-LCCR 2050) and the National Energy Policy in terms of the reduced contributions from oil and gas needed to reach NZE by 2060 or sooner.
She explained, however, that the overall trend as we move towards 2050 and beyond - as backed up by the IEA’s study on the Road Map to Indonesia’s NZE in the Announced Pledges Scenario - would see a much lower share of oil, especially, in the national energy mix with slightly greater demand for natural gas comparatively due to its use in non‐emitting processes, including hydrogen production with carbon capture, utilization and storage (CCUS).
Minister Nurbaya went on to share with the audience some figures reflecting the significant contribution from Indonesia’s energy sector, including its oil and gas industry, to the country’s total GHG emissions.
“In order for us to move forward from this level to the requirement of NZE in 2060 or sooner, oil and gas, as a high carbon intensive sector, is also under increased pressure to inevitably respond appropriately and in a timely manner in transitioning to decarbonisation,” she asserted.
Short-term mitigation actions
The Minister also expressed her appreciation for those oil and gas companies that have responded to the collective climate challenges Indonesia faces by declaring or taking measures aimed at decarbonization by 2050, while also lauding companies which have shifted their overall business process, including technical and financial aspects, to adapt to the new energy paradigm.
“Some efforts on exploring the deployment of CCS and CCUS, as also recommended by IPCC AR6 Working Group III, have been started in line with the process of the Draft Ministerial Regulation of the Minister of Energy and Mineral Resources on CCS/CCUS,” she explained.
Minister Nurbaya used the occasion to urge both SKK Migas as well as oil and gas companies to continue with discussions about the possibility of incorporating short-term mitigation actions – some of which she specified - into the upcoming Second NDC that the Government is planning to prepare.
“You may be aware that the oil and gas GHG baseline and emissions level have been included in our NDCs, but the mitigation actions only included the conversion of kerosene to LPG. There are some other potential actions, such as zero routine flaring and mitigations on methane emission, as well as mitigation actions outside the upstream oil and gas industry’s production process, such as green building and reforestation,” the Minister elaborated.
Having commended the Convention for the opportunity it provided its participants to share, learn and strengthen cooperation aimed at enhancing the move towards decarbonization in the oil and gas industry, the Minister called for the replication of energy transition mechanisms developed for coal power generation in this industry’s transition.
Minister Nurbaya did recognize, however, some of the complexities involved in shifting to a new way of operating “Some issues related to just transition, stranded assets, and access to more affordable energy sources require more efforts in order to undergo these challenges.”
“Implementation of this plan is very challenging as it requires policies and the transformation of technical and financial systems, including new approaches for accessing conventional funding sources, innovative financial instruments, and new investment schemes,” she conceded.
The Minister concluded her remarks by encouraging further cross-sector collaborations to further integrate oil and gas into becoming a pivotal part of Indonesia’s efforts to meet its NDC targets through innovative methods and initiatives.
“My expectation from this event is to continue our journey in the current challenging and dynamic global energy system by optimizing cooperation between the government and private sector at operational stages to include the role of the oil and gas industry in Indonesia’s NDC, including exploring the potential of CCS and CCUS.”
RELATED STORIES
