Climate Change Mitigation in Industries and Industrial Estates


Indonesia’s industrial sector provides tremendous potentials to reduce the emission of greenhouse gases. By improving energy efficiency and expanding the use of renewable resources it can contribute greatly to the national goal of climate change mitigation. So far, however, Indonesian companies have only a limited awareness of the benefits coming along with energy and resource efficient production cycles. They lack both knowledge of and access to appropriate funding mechanisms for mitigation actions. Also, both the quantity and quality of suitable service providers offering demand-oriented technical and advisory services require improvements.

PAKLIM II supports the Ministry of Industry, the Ministry of Environment, and industrial enterprises in identifying mitigation options and developing strategies to implement measures that reduce GHG emissions. A core challenge is to create new cooperation mechanisms to engage the industrial actors into the national process of climate change mitigation. PAKLIM II therefore aims to facilitate future cooperation between the Government of Indonesia and the private sector by developing different modes of cooperation, such as Voluntary Partnership Agreements (VPA), and fasten the diffusion of mitigation technologies, doing awareness raising and capacity building by implementing Development Partnerships with the Private Sector (DPP). To upscale these pilots of cooperation, the project also works on incentive mechanisms to enhance the economic attractiveness of mitigation efforts. Aside from supporting and cooperating with individual medium and large enterprises, PAKLIM also aims at improving the performance of industrial estates.

PAKLIM II aims to further increase the integration of and contributions from the private sector to the national process of climate change mitigation – including both industrial actors and other high emitting companies, as well as through cooperation with the Indonesian Chamber of Commerce and Industry KADIN and other local networks. Eventually Nationally Appropriate Mitigation Actions (NAMAs) shall be developed, which will trigger international recognition and financial and technical support to secure the sustainability of mitigation measures.