In order to support the government's efforts to achieve the 2016 Nationally Determined Contribution (NDC) target or Enhanced NDC 2022 and control of Greenhouse Gas (GHG) emissions, PT Sawit Sumbermas Sarana Tbk. (SSMS) is committed to accelerating the implementation of Carbon Economic Value (NEK).
SSMS Chief Sustainability Officer, Henky Satrio W. said that oil palm plantations have enough potential to participate in carbon trading through three schemes including carbon stock conservation, increasing carbon stocks, and reducing emissions in production. According to him, oil palm plantations that are managed sustainably and environmentally friendly have the potential to store large amounts of carbon that can contribute to reducing emissions.
To realize this commitment, SSMS began mapping the sources of GHG emissions and calculating the potential carbon sequestration in the operational scope. In this case, SSMS in collaboration with external consultant PT Cedar Karyatama Lestarindo (CKL) carried out carbon calculations in one of SSMS Group's oil palm plantations, PT Mitra Mendawai Sejati. The calculation methodology used by the provisions of the MoEF is through making DRAM (Mitigation Action Plan Document) and registering in the National Registration System (SRN) platform
before entering the Validation and Verification stage.
Henky explained in detail, that SSMS has made several efforts to minimize carbon emissions including from the energy and waste sectors, the operation of Methane Capture and Bio-CNG Plant by utilizing Palm Oil Mill Effluent (POME) into electricity and operational fuel.
In the agricultural sector, emission reduction is through the substitution of the use of inorganic fertilizers into organic fertilizers. All waste from palm oil processing is 100% reused such as the use of liquid waste (POME) and jangkos to minimize the use of chemical fertilizers (inorganic).
As for the forestry and land use sector, carbon accounting activities are part of the Blue Carbon Initiative Program, nature-based solutions that refer to sustainable management and use of nature including the protection of High Conservation Value (HCV) areas and the management of orangutan conservation areas on Salat Island.
On the same occasion, Henky conveyed the results of carbon absorption calculations from five sectors, PT Mitra Mendawai Sejati is estimated to reduce emissions by 345 thousand TCO2e / year. Currently, the NEK implementation process is already at the validation stage of the Mitigation Action Plan Document (DRAM). SSMS targets that by the middle of next year, it can pocket a GHG Emission Reduction Certificate (SPE-GRK) to enter carbon trading in Indonesia. "SSMS sees an opportunity for sustainable economic growth through carbon trade. For this reason, SSMS is ready to support the government to realize carbon trading in Indonesia. This is also in line with the commitment to control GHG emissions towards net zero emissions and contribute to the national commitment to NDC," he said.
Disclosure of Information to Shareholders (Information Disclosure) Concerning Material Transactions and Changes in Main Business Activities (POJK No. 17/2020)
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