IDEAS home Printed from https://ideas.repec.org/p/idn/wpaper/wp172021.html
   My bibliography  Save this paper

Zero-Waste Bioenergy To Lower Energy Transition Risks In Indonesia

Author

Listed:
  • Arnita Rishanty

    (Bank Indonesia, indonesia)

  • Maxensius Tri Sambodo

    (Indonesian Institute of Sciences)

  • Mesnan Silalahi

    (University of Indonesia)

  • Erliza Hambali

    (IPB University, Indonesia)

Abstract

Forced by the accelerating consequences of physical climate risk and biodiversity loss with the strands of the global decarbonization trend, Indonesia, as the world's largest palm oil producer, needs to ensure this industry's sustainability while balancing with the energy transition risks mitigation. This study fills the gap in understanding the technology development of methane capture for bioenergy, sharing application of business development, and the prospect of methane capture in achieving Indonesia's Nationally Determined Contribution (NDC) targets. By using quantitative and qualitative approaches, three important things were found. First, a systematic literature review shows that the use of methane gas as biogas or BioCNG has not been widely studied, particularly in social and economic modeling. Second, at the case study level, the use of methane gas as an energy source has been able to reduce electricity spending and consumption of fossil fuels, reduce carbon emissions and increase access to clean energy for companies and households in the surrounding environment. Third, using palm oil mill effluent (POME) waste for energy can reduce almost one-third of the total carbon emissions from the energy sector. This potential is an opportunity for Indonesia to strengthen the circular economy base in the palm oil industry to achieve the nation's climate NDC targets and support sustainable development goals. Instead of increasing the land used for the palm oil industry, which will harm the biodiversity further, utilizing the waste of the palm oil industry for clean energy supply would lower the risk of energy transition in Indonesia.

Suggested Citation

  • Arnita Rishanty & Maxensius Tri Sambodo & Mesnan Silalahi & Erliza Hambali, 2021. "Zero-Waste Bioenergy To Lower Energy Transition Risks In Indonesia," Working Papers WP/17/2021, Bank Indonesia.
  • Handle: RePEc:idn:wpaper:wp172021
    as

    Download full text from publisher

    File URL: http://publication-bi.org/repec/idn/wpaper/WP172021.pdf
    File Function: First version, 2021
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Harahap, Fumi & Leduc, Sylvain & Mesfun, Sennai & Khatiwada, Dilip & Kraxner, Florian & Silveira, Semida, 2020. "Meeting the bioenergy targets from palm oil based biorefineries: An optimal configuration in Indonesia," Applied Energy, Elsevier, vol. 278(C).
    2. Liew, Zhen Kang & Chan, Yi Jing & Ho, Zheng Theng & Yip, Yew Hong & Teng, Ming Chern & Ameer Abbas bin, Ameer Illham Tuah & Chong, Siewhui & Show, Pau Loke & Chew, Chien Lye, 2021. "Biogas production enhancement by co-digestion of empty fruit bunch (EFB) with palm oil mill effluent (POME): Performance and kinetic evaluation," Renewable Energy, Elsevier, vol. 179(C), pages 766-777.
    3. Loh, S.K. & Nasrin, A.B. & Mohamad Azri, S. & Nurul Adela, B. & Muzzammil, N. & Daryl Jay, T. & Stasha Eleanor, R.A. & Lim, W.S. & Choo, Y.M. & Kaltschmitt, M., 2017. "First Report on Malaysia’s experiences and development in biogas capture and utilization from palm oil mill effluent under the Economic Transformation Programme: Current and future perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1257-1274.
    4. Genovese, Andrea & Acquaye, Adolf A. & Figueroa, Alejandro & Koh, S.C. Lenny, 2017. "Sustainable supply chain management and the transition towards a circular economy: Evidence and some applications," Omega, Elsevier, vol. 66(PB), pages 344-357.
    5. Maria Teresa Punzi, 2018. "Role of Bank Lending in Financing Green Projects: A Dynamic Stochastic General Equilibrium Approach," Working Papers id:12938, eSocialSciences.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Prosman, Ernst Johannes & Cagliano, Raffaella, 2022. "A contingency perspective on manufacturing configurations for the circular economy: Insights from successful start-ups," International Journal of Production Economics, Elsevier, vol. 249(C).
    2. Jacopo Zotti & Andrea Bigano, 2019. "Write circular economy, read economy’s circularity. How to avoid going in circles," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(2), pages 629-652, July.
    3. Inês A. Ferreira & Radu Godina & Helena Carvalho, 2020. "Waste Valorization through Additive Manufacturing in an Industrial Symbiosis Setting," Sustainability, MDPI, vol. 13(1), pages 1-21, December.
    4. Patricia van Loon & Luk N. Van Wassenhove & Ales Mihelic, 2022. "Designing a circular business strategy: 7 years of evolution at a large washing machine manufacturer," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1030-1041, March.
    5. Hongtao Ren & Wenji Zhou & Marek Makowski & Hongbin Yan & Yadong Yu & Tieju Ma, 2021. "Incorporation of life cycle emissions and carbon price uncertainty into the supply chain network management of PVC production," Annals of Operations Research, Springer, vol. 300(2), pages 601-620, May.
    6. Claudia Aparecida De Mattos & Thiago Lourenço Meira De Albuquerque, 2018. "Enabling Factors and Strategies for the Transition Toward a Circular Economy (CE)," Sustainability, MDPI, vol. 10(12), pages 1-18, December.
    7. L. Rocchi & L. Paolotti & C. Cortina & F. F. Fagioli & A. Boggia, 2021. "Measuring circularity: an application of modified Material Circularity Indicator to agricultural systems," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-13, December.
    8. Huang, Bihong & Punzi, Maria Teresa & Wu, Yu, 2022. "Environmental regulation and financial stability: Evidence from Chinese manufacturing firms," Journal of Banking & Finance, Elsevier, vol. 136(C).
    9. Gil Lamata, Mercedes & Latorre Martínez, María Pilar, 2022. "The Circular Economy and Sustainability: A Systematic Literature Review," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    10. Gunasekara, Lahiru & Robb, David J. & Zhang, Abraham, 2023. "Used product acquisition, sorting and disposition for circular supply chains: Literature review and research directions," International Journal of Production Economics, Elsevier, vol. 260(C).
    11. Graziela Darla Araujo Galvão & Steve Evans & Paulo Sergio Scoleze Ferrer & Marly Monteiro de Carvalho, 2022. "Circular business model: Breaking down barriers towards sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1504-1524, May.
    12. Zaili Rusli & Dadang Mashur & Ringgo Eldapi Yozani & Dedi Kusuma Habibie & Harapan Tua Ricky Freddy Simanjuntak & Trio Saputra, 2022. "The Governance of Downstream Oil Palm Development in the Technopolitan Area of Pelalawan Regency," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 233-240, March.
    13. Bressanelli, Gianmarco & Visintin, Filippo & Saccani, Nicola, 2022. "Circular Economy and the evolution of industrial districts: a supply chain perspective," International Journal of Production Economics, Elsevier, vol. 243(C).
    14. Saeedeh Anvari & Metin Turkay, 2017. "The facility location problem from the perspective of triple bottom line accounting of sustainability," International Journal of Production Research, Taylor & Francis Journals, vol. 55(21), pages 6266-6287, November.
    15. Mariana Oliveira & Mécia Miguel & Sven Kevin Langen & Amos Ncube & Amalia Zucaro & Gabriella Fiorentino & Renato Passaro & Remo Santagata & Nick Coleman & Benjamin H. Lowe & Sergio Ulgiati & Andrea Ge, 2021. "Circular Economy and the Transition to a Sustainable Society: Integrated Assessment Methods for a New Paradigm," Circular Economy and Sustainability,, Springer.
    16. Fredrick Betuel Sawe & Anil Kumar & Jose Arturo Garza‐Reyes & Rohit Agrawal, 2021. "Assessing people‐driven factors for circular economy practices in small and medium‐sized enterprise supply chains: Business strategies and environmental perspectives," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 2951-2965, November.
    17. Suzanne, Elodie & Absi, Nabil & Borodin, Valeria, 2020. "Towards circular economy in production planning: Challenges and opportunities," European Journal of Operational Research, Elsevier, vol. 287(1), pages 168-190.
    18. Claudio Siminelli, 2017. "Consumer behaviours and attitudes towards a circular economy: Knowledge and culture as determinants in a four-market analysis," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2017(1-2), pages 135-169.
    19. Dennis Vegter & Jos van Hillegersberg & Matthias Olthaar, 2021. "Performance Measurement Systems for Circular Supply Chain Management: Current State of Development," Sustainability, MDPI, vol. 13(21), pages 1-18, November.
    20. Sara Alonso-Muñoz & Rocío González-Sánchez & Cristina Siligardi & Fernando E. García-Muiña, 2021. "New Circular Networks in Resilient Supply Chains: An External Capital Perspective," Sustainability, MDPI, vol. 13(11), pages 1-18, May.

    More about this item

    Keywords

    palm oil; circular economy; energy transition; methane capture; POME; BioCNG;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idn:wpaper:wp172021. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lutzardo Tobing or Jimmy Kathon (email available below). General contact details of provider: https://edirc.repec.org/data/bigovid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.