The private sector plays a critical role in translating the commitments of the Paris Agreement into tangible action in the real economy, whether it’s providing clean energy, enhancing adaptive capacity throughout their supply chain, or enabling broader societal resilience in the communities from which they derive their social license to operate. Private sectors offer innovation and technology that can both deliver and increase Palembang’s climate commitment.
Within IUC-Asia’s support to local climate action planning, the Environmental Agency of Palembang organized on 21 and 22 April 2020 a consultation meeting to engage the private sector. Top national companies, located in the Palembang, attended the gathering including PT Pertamina, PT Pupuk Sriwijaya, PT PLN, PT KAI.
In response to the COVID-19 outbreak, the group gatherings were set-up to meet the requirement of a number of people. IUC Asia Helpdesk and CCROM joined the meeting through an online platform, while the local university assisted through face-to-face meetings with city stakeholders.
The following examples illustrated some actions that the companies have contributed to mitigation climate changes, particularly in the Palembang area.
- PT Pupuk Sriwijaya: as the pioneer of urea fertilizer producer in Indonesia, the company has committed implements the energy-saving production process technology of urea and ammonia.
- PT Pertamina: as an Indonesian state-owned oil and natural gas corporation, they continue to work hard in building the nation through strengthening its commitment in the fields of new and renewable energy and business diversification. Among others, pyrolysis technology and biodiesel plant were mentioned by the officer attended in the meeting.
- PT PLN: as a state electricity company, they undertake the community to promote the use of green energy, for instance, switching from gas to electricity stoves; utilization of green energy for public cell phone charging station powers mobile devices.
- PT KAI: Palembang Light Rail Transit (LRT) is fully owned and operated by PT KAI as a state-owned transportation firm. They are redesigning the station to promote the green material.
The participants raised the concern about the private sector engagement on the environment faces a number of key challenges. There is a general lack of evidence on the extent to which private sector engagement efforts have resulted in wide-ranging environmental outcomes, beyond the mobilisation of private investment. The outcome of the meeting was significant for the development of Palembang’s Climate Action Plan.