Support Carbon Neutrality 2060, GRP Signs MoU with FFI and KADIN
JAKARTA, Investor.id - National steel issuer PT Gunung Raja Paksi Tbk (GRP) continues to strengthen its commitment to support the government's program in realizing carbon neutrality or net zero emission (NZE) in 2060. The company signed a memorandum of understanding (MoU) with Fortescue Future Industries (FFI) and the Indonesian Chamber of Commerce and Industry (Kadin) at the B20 Summit, Nusa Dua, Bali, Sunday (11/13/2022).
"The signing of this MoU is to establish cooperation and identify potential for mutually beneficial collaboration, including regarding the use of clean energy that is environmentally friendly," explained Kimin Tanoto, member of the GRP executive committee, Monday (11/14/2022).
According to Kimin, the MoU with FFI explored collaboration in green hydrogen and green ammonia use cases. The use of green hydrogen enables GRP to produce low-emission steel in sectors that are extremely difficult to reduce. The agreement with Kadin, he said, promises GRP's commitment to net zero, which is the main focus area after GRP launched the ESG Guidebook some time ago.
“This is in line with the ESG GRP Handbook. In this regard, the company is moving forward in decarbonizing the region's steel industry through accelerating net-zero emissions and promoting the use of green energy, which are key focus areas in its ESG strategy," he explained.
According to him, the cooperation is indeed strategic. This is because steel production is one of the most polluting and energy-consuming sectors in the world, making it a major contributor to global emissions. Until now, the Asian steel industry contributes more than 70% of carbon emissions in global steel production.
“The steps we are taking today will build the future. Therefore, GRP is working with partners who have the expertise to push our business and steel industry towards a prosperous and more environmentally friendly future," added Kimin.
On the other hand, FFI is a global green energy company committed to producing green hydrogen, containing zero carbon, from 100% renewable sources. Meanwhile, Kadin is an umbrella organization of Indonesian business chambers and associations, which is highly committed to harnessing the potential and synergies of the national economy, and offering a strategic forum for Indonesian entrepreneurs.
Kimin added, various efforts to reach Indonesia NZE could not be separated from the role of Kadin Net Zero Hub (NZH). Kadin NZH is a forum for the decarbonization movement in the industrial and commercial sectors as well as efforts to support the energy transition to reach Indonesia NZE.
Chairman of the Kadin Renewable Energy Committee Muhammad Yusrizki explained, Kadin NZH aims to build a sustainable business ecosystem by assisting the Indonesian private sector in realizing net zero emission commitments to their respective business entities and increasing competitiveness in the global market.
“Achieving net zero by 2060 can only be achieved by working with private sector partners such as GRP. We hope that this MoU will pave the way for future partnerships," said Yusrizki.
Andrew Forrest AO, chairman and founder of FFI, said that his party could not reduce carbon emissions alone. He hopes that emission producing companies will follow GRP's lead. "We are determined to help them move towards decarbonization," said Andrew.
Source: Investor