Jakarta, September 8, 2025 – The industrial sector is the backbone of economic growth. However, it is also the largest contributor to greenhouse gas emissions. As much as 20% of emissions in Indonesia in 2024 came from the industrial sector.
The industrial sector needs to have a decarbonization agenda by exploring various technologies and strategies to reduce its emissions. This was conveyed by Juniko Nur Pratama, Industrial Decarbonization Program Manager, Institute for Essential Services Reform (IESR), in the webinar “Accelerating Cement Decarbonization in Indonesia Towards 2050: Insights from India and China.” He added that the Indonesian Ministry of Industry is targeting the industrial sector to achieve net-zero emissions (NZE) status by 2050, ahead of the national NZE target of 2060 or sooner.
“This ambitious target certainly faces technical and funding challenges, but we can shift perspective and see that behind these challenges lies an opportunity to accelerate the adoption of low-carbon technologies and the utilization of renewable energy in the industrial sector,” said Juniko.
To support this acceleration, learning and sharing experiences from countries that have already taken the lead is crucial.
V Kannan, Senior Counselor of the Confederation of Indian Industry, shared India’s journey, implementing long-term targets until 2070, while also pursuing low-hanging fruit, such as energy efficiency and fuel substitution, as short-term strategic measures. In general, industrial decarbonization in India is carried out using the PATH (Perform, Achieve, Trade) strategy, where industries set emission reduction targets over a specific timeframe and potentially engage in carbon trading between industrial entities.
“We are implementing a comprehensive strategy encompassing energy and fuel efficiency, exploring various currently available technologies, and exploring opportunities for the use of alternative fuels such as biomass, given that India is an agricultural nation,” he said.
Olav Øye, Senior Advisor for Climate and Industry at the Bellona Foundation in Norway, explained that Norway’s current strategy for industrial decarbonization focuses on reducing greenhouse gas emissions. To this end, Norway is carefully considering the choice of low-carbon technologies. Although Norway currently relies heavily on CCS, during the research and development phase, time is a key factor. Some technologies will evolve and adapt, while others will only last for 10-40 years.
“Long-term planning and targets provide confidence and certainty for investors to engage in CCS projects that require high investment capital,” said Olav.
Lilik Unggul, Chairman of the Indonesian Cement Association, stated that in the Indonesian context, various technological developments and global and national policies are driving the decarbonization of the cement industry.
“Market-based instruments, such as carbon credits, which will come into effect in Indonesia in 2026, are needed to encourage cement industry players to accelerate their decarbonization efforts,” Lilik said.
Liu Shujuan, an engineer from the China Building Materials Federation (CBMF), stated that reducing fossil fuel use in cement production is key to cement decarbonization in China. China’s cement production is currently among the most energy-efficient in the world.
“From energy efficiency to the use of various technologies such as fuel replacement, digital automation, and breakthroughs in CCUS, hydrogen, and cement clinker technology,” Liu said.
Liu added that the use of hydrogen and CCUS to promote low-carbon cement production is also being promoted and is expected to result in a 39% reduction in GHG emissions by 2050. Furthermore, the use of renewable energy in the cement industry is expected to contribute to achieving global emission reduction targets.
Based on the experiences of the three countries, establishing long-term targets is key to the success of decarbonization in the industrial sector. Long-term emission reduction targets will provide confidence for the industry to undertake various efforts, such as investing in technologies to reduce its emissions. Consistent long-term targets will also allow for comprehensive consideration in selecting technologies such as hydrogen, which are less suitable for decarbonizing the cement industry.
