Net Zero Emission has become one of the global targets that must be achieved to reduce the impacts of climate change and keep global temperature increases below 1.5°C.
For Indonesia, this target is not only about reducing greenhouse gas emissions but also about driving the energy transition, creating green economic opportunities, and supporting more sustainable development.
Climate change is now being felt in various parts of the world, including Indonesia. Extreme weather, floods, droughts, and rising temperatures are challenges that must be addressed collectively.
Therefore, governments, businesses, and communities need to collaborate to achieve the Net Zero Emission (NZE) target through various concrete measures, ranging from energy transition to renewable energy development.
What Is Net Zero Emission?
Net Zero Emission is a condition in which the amount of greenhouse gas emissions released into the atmosphere is equal to the amount of emissions that are removed or permanently absorbed.
In other words, achieving Net Zero Emission means there is no longer any net addition of emissions that accelerates global warming.
This target does not mean that all human activities must stop producing emissions. Emissions will still be generated by sectors such as industry, transportation, and agriculture.
However, these emissions must be reduced as much as possible, while the remaining emissions are neutralized through various methods, such as carbon absorption by forests or carbon removal technologies.
According to the Intergovernmental Panel on Climate Change (IPCC), the world needs to reduce greenhouse gas emissions by approximately 45% by 2030 compared with 2010 levels, and then reach Net Zero Emission around 2050 to maintain the possibility of limiting global temperature increases to below 1.5°C.
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Why Is Net Zero Emission Important?
Rising global temperatures affect various aspects of life. Heat waves are becoming more frequent, rainfall patterns are becoming increasingly unpredictable, sea levels continue to rise, and the risk of crop failures is increasing.
For businesses, climate change also creates significant economic risks, ranging from supply chain disruptions to rising operational costs.
Therefore, an increasing number of countries and companies are setting Net Zero Emission targets as part of their long-term development strategies. In general, there are five key steps commonly used by companies to achieve NZE targets:
- Measuring all greenhouse gas emissions generated.
- Developing strategies to gradually reduce emissions.
- Balancing remaining emissions through carbon absorption or carbon removal technologies.
- Conducting transparent reporting.
- Ensuring that all processes are verified by independent parties.
How to Achieve Net Zero Emission
Achieving Net Zero Emission requires major changes across various sectors. Several studies indicate that there are a number of key strategies that can be implemented.
1. Strengthening Regulations
Government policies are an important foundation for reducing emissions. Clear regulations provide businesses with greater certainty to invest in low-carbon technologies.
2. Reducing Emissions Across All Sectors
Emission reductions should not only focus on the energy sector but also extend to transportation, industry, buildings, and agriculture, allowing emissions from all sources to be reduced simultaneously.
3. Developing Carbon Capture Technologies
Carbon Capture and Storage (CCS) technology can help reduce emissions from sectors that are difficult to decarbonize.
However, its implementation needs to be supported by strong governance while taking cost and environmental considerations into account.
4. Establishing a Credible Carbon Market
Carbon trading can be one of the instruments used to accelerate emission reductions. To be effective, monitoring, reporting, and verification systems must operate transparently.
5. Ensuring a Just Transition
Each country has different economic conditions and resources. Therefore, the transition toward Net Zero Emission needs to consider aspects of fairness, including financial support and technology transfer for developing countries.
6. Maintaining Environmental and Social Balance
Emission reduction efforts should not come at the expense of biodiversity or people's livelihoods. Therefore, all policies need to consider social and ecological impacts simultaneously.
7. Creating a Green Economy
The transition to clean energy not only reduces emissions but also creates new investment opportunities, generates green jobs, and improves economic competitiveness in the long term.
Indonesia's Commitment to Net Zero Emission
Indonesia ratified the Paris Agreement through Law No. 16 of 2016 as part of its commitment to addressing climate change.
The government has also set a target to reduce greenhouse gas emissions by 31.89% through its own efforts and up to 43.20% with international support by 2030.
In addition, Indonesia aims to achieve Net Zero Emission by 2060 or sooner.
To achieve this goal, the government continues to promote the use of renewable energy, technological development, research, supportive regulations, and collaboration among the government, private sector, academia, and communities.
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Supporting the Acceleration of Net Zero Emission in Indonesia with TBS
The journey toward Net Zero Emission requires meaningful contributions from various stakeholders, including the private sector. One company that actively supports Indonesia's energy transition is TBS through various renewable energy projects.
Since 2020, through its subsidiary PT Toba Bara Energi (TBAE), TBS Energi Utama has strengthened its clean energy portfolio by acquiring PT Adimitra Energi Hidro (AEH), a developer of a 2 x 3 MW Mini-Hydropower Plant (PLTM) in Lampung.
In addition, TBS acquired PT Bayu Alam Sejahtera (BAS), which is developing wind energy potential in East Nusa Tenggara.
Following these acquisitions, the AEH Mini-Hydropower Plant officially began commercial operations on January 22, 2025, and now supplies 6 MW of clean electricity to the Southern Sumatra region.
In addition to generating clean energy, the project also benefits local communities through infrastructure development, improved access to electricity, and environmental conservation.
TBS is also developing the Tembesi Floating Solar PV Power Plant in Batam. The project achieved financial closing in 2024 and is targeted to begin full operations in 2026 and connect to the national electricity grid.
Going forward, the floating solar power plant is expected to reduce carbon emissions, improve air quality, create green jobs, promote technology transfer, and strengthen sustainable development in Batam and Indonesia.
Through these renewable energy projects, TBS Energi Utama demonstrates its commitment to supporting Indonesia's Net Zero Emission target while accelerating the transition toward a cleaner, more resilient, and sustainable future.
