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Generate Profit from Decarbonization Practice

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TEMPO.CO, Jakarta - Decarbonization has now become one of the key phrases guiding modern corporations. An increasing number of companies are becoming aware of the importance of environmentally friendly business activities, including implementing operational aspects that can reduce carbon dioxide emissions and other greenhouse gases.

Decarbonization, or activities to reduce carbon emissions, is currently prevalent in various sectors. Players in the manufacturing industry, for example, are starting to shift to environmentally friendly energy sources, although in practice, extra efforts and significant costs are required. Similarly, players in the oil and gas industry are competing to implement carbon capture technology in the fields they operate.

Another sector that is also implementing decarbonization practices is waste management, which, unbeknownst to many, also generates significant carbon emissions and greenhouse gases. In the agricultural sector, low-carbon business practices are also starting to take off, although not as significantly as in other sectors.

It is undeniable that low-carbon business practices are not only for environmental purposes. In the eyes of business players, there is economic value arising from decarbonization practices. The simplest is the positive assessment for corporations implementing decarbonization practices in the eyes of consumers and financial institutions. Especially now, banks and financial institutions are increasingly funding green businesses and starting to distance themselves from corporations that carry out business practices without environmental orientation.

Another benefit is the economic value arising from decarbonization activities. After the government opened the carbon exchange in 2023, opportunities emerged for companies implementing low-emission business practices to obtain carbon offset certificates. These certificates can be traded at the exchange and purchased by other entities in need of carbon credits. Although it is still in its early stages, this practice is beginning to be seen as an opportunity to generate profits.

Dear readers, this week Tempo English magazine provides special coverage of the initiatives and activities of corporations related to decarbonization. We have portrayed several sectors to illustrate this trend. How much economic value and other opportunities have been created?

Happy reading.

Fery Firmansyah 

Managing Editor of Economy and Business            

Economic Prospects of Decarbonization

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Decarbonization is seeing an uptrend in various industrial sectors. Businesses are hoping for incentives and economic benefits.

                                                                                        

Quiet Carbon Exchange

Trading on the carbon exchange is strained by regulations. Business actors are complaining about the mandatory entry to the National Registry System.

Carbon Trading in Electricity Sector

PLN and power companies are hunting for revenue from carbon units. The race to develop low-emission energy sources is on.

Social Assistance in Election Campaigns

Jokowi reportedly puts Finance Minister Sri Mulyani under pressure over the issue of social assistance, which is vulnerable to being used for the Prabowo-Gibran presidential campaign.

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