Gunung Raja Paksi 加快去碳化努力： 如何做到
Detik.com, 9 August 2024
PT Gunung Raja Paksi Tbk (GRP), one of Indonesia's largest steel producers, has initiated strategies to decarbonize its operations as a significant contributor to carbon emissions.
Sheren Omega, General Manager of Corporate Planning & Sustainability at GRP, explained that the company has focused on Environmental, Social, and Governance (ESG) investments since 2021. This is part of its efforts to reduce the carbon footprint generated by its steel business.
“As one of the largest contributors to global and national carbon emissions—something we’re not proud of—we are working to mitigate the impact of our business, not only environmentally but also socially and in terms of governance,” she said during the “Sustainability Initiatives Supporting Decarbonization” talk show at the LIKE 2 Festival by Indonesia’s Ministry of Environment and Forestry (KLHK), held at the Jakarta Convention Center on Friday (9/8/2024).
Sheren highlighted various strategies implemented by GRP to reduce carbon emissions. These include educating suppliers on the importance of ESG adoption to facilitate decarbonization and exploring technologies to enhance energy efficiency in operations. By improving energy efficiency, GRP aims to minimize environmental impact.
“We are also exploring ways to transition to cleaner fuels. This ties directly to GRP’s carbon reduction efforts and our focus on monitoring operational and production efficiency, as energy efficiency is closely linked to the energy consumed,” she explained.
Sheren added that GRP could further reduce carbon through its products, but this would be a last resort if other efforts fail to deliver significant carbon reductions. “Carbon offsetting will be our final step to achieve zero-carbon products if other measures leave residual emissions,” she said.
To reduce electricity consumption, GRP has also installed solar power plants (PLTS) in West Java, with a total capacity of 9.3 MWp (megawatt peak). “Our target is 33 MWp. While 9.3 MWp is substantial, it currently only accounts for 7% of our annual electricity consumption,” she concluded.
Decarbonization Challenges
Sheren outlined several challenges in reducing carbon emissions. The first is a lack of awareness and understanding of decarbonization's importance. She noted that the steel industry in Indonesia still requires education on why decarbonization is vital.
“The steel sector is one of the highest carbon-emitting industries during production. The challenge lies in aligning visions and goals within Indonesia's steel industry regarding decarbonization—understanding what it is and what actions are needed,” she said.
Another challenge is the lack of technology for producing zero-carbon steel. Globally, there is still no technology that can create truly green steel. “This is a global challenge. Export markets are seeking technology for green steel, which is essentially steel with no carbon footprint—but such technology does not exist yet,” she emphasized.
Additionally, research into strategies and technologies to produce green steel requires significant time and investment. “Supply chain complexity in the steel sector also presents a challenge. Decarbonization requires upstream and downstream involvement—not just in production but also from suppliers and customers. GRP cannot do it alone, as we are in the middle of the supply chain,” she explained.
The high costs of transition and the lack of existing technology further add to the burden. Sheren noted that while reducing environmental impact is essential, profitability remains a priority for sustaining the business. “Without profit, it’s hard for a business to survive. Balancing environmental impact with profitability remains GRP’s core principle,” she added.
Lastly, the market demand for green steel poses another challenge. Producing zero-carbon steel is expensive, raising the question of whether there is sufficient demand for such premium products. “The big question is, who will buy green steel or premium steel? However, the good news is that over the past year, more industries have committed to green products, not just in steel but also in aluminum and other raw materials,” she concluded.
Read Article: https://finance.detik.com/ekonomi-hijau/d-7481757/gunung-raja-paksi-geber-dekabonisasi-begini-caranya