Fostering Zero Emissions Innovation in the Palm Oil Downstream Industry

palm oil magazine
Doc. Sawit Fest 2021 / Muhammad Iqbal

PALMOILMAGAZINE, SURABAYA – The downstream palm oil industries in Indonesia have made a dedicated commitment to play an active role in reducing global greenhouse gas (GHG) emissions with the aim of achieving net-zero emissions (NZE). The term “low emission industry” not only serves as a descriptor but also as the key to access, enabling these industries to trade their products.

This aligns with the evolving global consumption trends, particularly the growing preference for environmentally friendly products manufactured by sustainable and eco-conscious industries.

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The focus is on ensuring responsible, sustainable, and transparent production processes. Sustainability within the palm oil downstream sector encompasses not only the quality of the end products but also the responsibility for managing GHG emissions throughout the product supply chain.

Also Read : Significant 118 Million Ton GHG Emission Reduction in Indonesia in 2022

General Director of Agro Industry, Putu Juli Ardika said that in the future GHG emission from palm oil downstream industries would be the main consideration for many consumers.

“In the future, we predicted that the awakening aspect of GHG emission from palm oil downstream industries would be the consideration for consumers to choose palm oil downstream products with low net emission index,” he said in his speech when representing Minister of Industry in Pekan Riset Sawit Indonesia (PERISAI) 2023 in Surabaya, Wednesday (25/10).

Agro industries developed 3,90% in the second quarter of 2023, significantly contributed to gross domestic product in non – oil and gas sector up to 50,87%. Palm oil industries dominated in agro industries and made them as the prior in national scale – development.

Palm oil downstream industries have about 179 kinds of downstream products within about 90% export volume in processed products. Only about 10% of export volume in raw materials, such as, crude palm oil (CPO) or crude palm kernel oil (CPKO).

Also Read : Palm Oil Downstream Program Boosts Smallholders Production and Drives Economic Growth

Putu continued, Indonesia as the biggest palm oil producer in the world has the big chance to be the leader in decarbonization by using palm oil downstream products massively in this country. It would reduce GHG emission and make CPO price remain stable in the globe. It would also encourage smallholders within profitable fresh fruit bunch price.

One concrete strategy to realize NZE is by applying environmentally production technology. Ministry of Industry initiated new technology application to produce red palm cooking oil without boiling (sterilization) with SPOT (Steamless Palm Oil Technology) model. It could reduce GHG emission about 20,84% from conventional mill within the same capacity.

Ministry of Industry also appreciated Palm Oil Plantation Fund Management Agency that supported research and development program in national scale to get decarbonization to realize NZE in 2050 or one decade earlier than the target globally that would be in 2060.

The collaboration among the governments, industries, and research institutions would play the key roles to realize NZE vision. “We hope research topic would be sustainable to realize NZE that has been established,” Putu said. (T2)

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