GGRP States Anti Carbon Policy Will Impact Exports
Kontan.co.id, 5 July 2024
Steel manufacturer PT Gunung Raja Paksi Tbk (GGRP) has stated that anti-carbon policies, such as the Carbon Border Adjustment Mechanism (CBAM), will impact their export share to Europe.
Head of Sustainability at GGRP, Sheren Omega, mentioned that although the majority of their steel sales are still in the domestic market, CBAM will certainly affect their export targets in the future, especially since this regulation will be implemented in 2025. "In our view, the CBAM regulation will impact our export sales, particularly to Europe. Although GGRP's export market share is only around 5%, compared to 95% in the domestic market, we, as a steel industry player, must begin to anticipate the implementation of CBAM, which will take effect in 2026," Sheren said when contacted by Kontan on Friday (07/05).
To address the side effects of CBAM, Sheren stated that the company is currently applying for Environmental Product Declaration (EPD) certification for the European market as a form of data transparency. To date, the company has exported steel to more than 30 countries worldwide, including Europe.
"Regarding exports, we have exported steel products to more than 30 countries, including recently to Canada to support construction projects, as well as to Australia and New Zealand," he added. This year, GGRP is targeting a full capacity of approximately 1.2 million tons annually.
In addition to the target for carbon reduction in the global market, Sheren also explained that the company has taken several steps to reduce the carbon levels in its steel products sold in the domestic market. "We have implemented several green initiatives within the company. Among these, we have used Electric Arc Furnace, which produces lower carbon emissions compared to Blast Furnace," he said.
Moreover, the company has consistently made sustainable operational efficiencies with a focus on improving productivity through the development of efficient production technologies, optimizing the supply chain, and digitizing business processes. "We have also installed and are using Rooftop Solar Panels to support our operational activities as part of our commitment to advancing new and renewable energy. These Rooftop Solar Panels have a capacity of 9.3 megawatts peak and are among the largest in West Java," She added.
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