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Training on Determining GHG Reduction Programs

How to Determine an Effective GHG Reduction Program for Your Business's Future?

Establishing a greenhouse gas (GHG) reduction program has become a crucial step for businesses and industries in Indonesia to support national emission reduction targets. The government’s commitment under the Paris Agreement entails reducing GHG emissions by 29% by 2030 through independent efforts, and by up to 41% with international support. Amidst growing global awareness of climate change, various sectors are required to implement strategies that support sustainable development, ensure regulatory compliance, and contribute to environmental preservation. However, the question remains: what kind of GHG reduction program is most suitable and effective for your company’s specific operations?

Climate Change Affects Various Sectors

Climate change has become a global issue affecting various sectors, ranging from agriculture to energy. Greenhouse gases such as carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O) are the primary drivers of global warming. According to data from the Intergovernmental Panel on Climate Change (IPCC), atmospheric greenhouse gas concentrations have steadily risen since the mid-20th century, potentially leading to a global temperature increase of 1.5–4.5°C in the absence of mitigation measures. In Indonesia, the forestry and energy sectors account for approximately 60% and 36% of greenhouse gas emissions, respectively.

Why Is Determining GHG Reduction Programs Important?

Determining an appropriate GHG reduction program represents a strategic move for companies to minimize their environmental impact while enhancing their corporate image. Pressures from various stakeholders—including increasingly eco-conscious consumers, investors focused on ESG (Environmental, Social, and Governance) criteria, and tightening government regulations—have made the management of greenhouse gas emissions a crucial component of good corporate governance. An effective GHG reduction program provides a roadmap toward a more environmentally friendly and sustainable business, while simultaneously mitigating financial risks associated with future carbon costs.

Policy for the GHG (Greenhouse Gas) Reduction Program

Before formulating a strategy, it is essential to understand the prevailing policy framework. In Indonesia, the commitment to reduce greenhouse gas (GHG) emissions stems from the Paris Agreement, which has been ratified through the Nationally Determined Contribution (NDC) document. This commitment is reinforced by Presidential Regulation Number 98 of 2021 concerning the Implementation of Carbon Economic Value to Achieve Nationally Determined Contribution Targets, as well as the National Medium-Term Development Plan (RPJMN). These policies serve as a reference for priority sectors—such as energy, forestry, industry, and transportation—in developing sectoral GHG reduction programs.

First Step: Accurately Measuring the Carbon Footprint

How can something be reduced if it has not been measured? The initial step in a GHG reduction program is to accurately and consistently calculate your company’s or industry’s carbon footprint. The two most widely adopted global standards are:

SNI ISO 14064-2: This Indonesian National Standard, which adopts ISO 14064-2, provides specific specifications for the quantification, monitoring, and reporting of GHG emission reductions or removal enhancements at the project level.
GHG Protocol Corporate Standard & Project Protocol: The most widely used global framework for calculating and reporting GHG emissions at both the corporate and specific project levels. These protocols clearly define emission scopes (Scope 1, 2, and 3).

What is the goal of your greenhouse gas reduction program?

Selecting the appropriate calculation methodology depends on the objectives of your GHG reduction program—whether for internal reporting, regulatory compliance, or preparing to enter the carbon market. This is because the accuracy of your GHG inventory data serves as the foundation for setting suitable reduction targets and identifying the most effective reduction opportunities.

Identifying Reduction Opportunities and Formulating Strategies

Once a robust emissions baseline is established, the next step in a GHG reduction program is to analyze your primary emission sources. Where are the largest emissions generated? Which processes or activities are the most carbon-intensive? This analysis will reveal priority areas for intervention. GHG reduction opportunities can generally be categorized into:

Energy Efficiency: Optimizing energy use across facilities, machinery, and processes. Examples include switching to LED lighting, optimizing HVAC systems, and using high-efficiency electric motors.
Transition to Renewable Energy: Utilizing clean energy sources such as solar, wind, geothermal, or sustainable biomass—either through on-site generation or procurement via Renewable Energy Certificate (REC) schemes or green Power Purchase Agreements (PPAs).
Process and Raw Material Optimization: Reducing process waste, using recycled or low-carbon raw materials, and improving material efficiency.
Logistics Management: Optimizing distribution routes, increasing transport load capacity, switching to low-emission modes of transport, or promoting remote work.
Greening and Carbon Sequestration: Planting trees or supporting nature-based solutions (NbS) that sequester carbon, although this typically serves as a compensatory measure after maximum reduction efforts have been implemented.

GHG reduction program strategies must be realistic, measurable, and have clear timelines and allocated resources. Each initiative requires key performance indicators (KPIs) to monitor progress.

Entering the Carbon Market: Recognized Schemes and Methodologies

For businesses seeking to register their reduction efforts to obtain carbon credits, understanding carbon market schemes is crucial. Schemes such as Verra (VCS – Verified Carbon Standard), the Gold Standard, or national schemes (like the one currently being developed in Indonesia) maintain lists of specific, approved methodologies. These methodologies consist of detailed rules outlining how specific project types—such as renewable energy initiatives, tree planting, or fuel switching—must be measured, monitored, and verified to generate valid credit units. It is essential to select a methodology approved by your target carbon credit scheme before the project begins. Doing so ensures that your GHG reduction efforts meet eligibility criteria and can generate tradable carbon credits. This is a critical technical aspect of GHG reduction programs aimed at securing financial incentives.

Challenges in Determining GHG Reduction Programs

Despite its importance, establishing a GHG reduction program is not without challenges. Initial costs for low-carbon technologies or emissions measurement can pose a barrier, particularly for small and medium-sized enterprises. Furthermore, a lack of expertise in emissions management can also slow down implementation. To address this, companies can participate in specialized training, such as the GHG reduction program planning training offered by Actia.

Training on Determining GHG Reduction Programs with Actia

Navigating the complexities of GHG emission calculations, applicable standards, and the identification of reduction opportunities—as well as preparing for carbon credit schemes—requires specialized knowledge and skills. Actia offers training to assist companies in defining their GHG reduction programs. This training is designed to guide companies through every stage, from emission identification, baseline calculation, and mitigation strategies to the verification process in accordance with international standards. Utilizing a practical, industry-focused approach, Actia is ready to support your business on its journey toward greater sustainability.

Contact us for more information!

Date: June 3–4, 2026 Fee: Rp 6,000,000

Practical Tips to Get Started Right Now

For companies just starting out, here are a few simple steps:

Reduce fossil fuel consumption by switching to public transportation or electric vehicles.
Use organic fertilizers in the agricultural sector to curb nitrous oxide emissions.
Educate employees on the importance of energy conservation in their daily activities.