The report analyses emission profiles of ten major coal mining companies in Indonesia, responsible for half of the country’s coal production. It also assesses the emissions reduction actions and decarbonisation pathways of these companies.
Indonesia’s largest coal companies have shown varying commitment to developing emissions inventories and reducing CO2. However, most actions have yet to lead to substantial emissions cuts, and many companies do not measure or report CMM emissions, leaving methane mitigation out of decarbonisation plans. As a result, methane mitigation measures are yet to be considered in any of the coal mining decarbonisation plans
The report reveals that only four of Indonesia’s ten largest coal mining companies include CMM in their emissions inventories. These include Indo Tambangraya Megah, Bukit Asam, Golden Energy Mines and Indika Energy. For the rest, unreported CMM emissions could be as significant as the emissions from on-site fossil fuel combustion and purchased electricity combined.
This oversight means that the full environmental impact of coal mining is not being accounted for, leaving a critical aspect of decarbonisation efforts unexplored. In total, the estimated CMM emissions of these ten coal companies could exceed 8 million tonnes of CO2e, more than a third of the companies’ potential total emissions.
The report also analyses the government’s recent approval of a coal production quota of 922 million tonnes for 2024. This is a significant increase from the current target of 710 million tonnes, adding another layer of complexity in understanding the overall sustainability of the coal industry.
This decision comes at a time when primary domestic coal demand is in decline and variable demand projections impact major importers. In this context, the report highlights a regulatory opportunity to ensure sustainability is mainstreamed across the industry.
For Indonesian coal companies, understanding and addressing their methane emissions is crucial, not just for companies’ decarbonisation efforts and ensuring compliance with national and international standards, but also for improving safety, and implementing the most commercially competitive decarbonisation strategy.
Developing a comprehensive GHG emissions inventory, including fugitive methane, will help them understand their emissions and devise effective mitigation strategies. Unreported methane emissions also risk undermining individual decarbonisation efforts, and Indonesia’s commitments under the Global Methane Pledge.
Big coal mining companies in Indonesia have started to reduce emissions through various decarbonisation measures, with some pledging to achieve net zero emissions and develop green energy businesses. However, most of them have overlooked the significant impacts of methane emissions within their coal businesses, and none have planned to address it. Measuring and reporting methane emissions will be crucial in coal mining decarbonisation efforts and ensuring compliance with national and international standards.
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