Collaborative Approach in Navigating CBAM Policy
PT Gunung Raja Paksi (GRP) recently participated in a Focus Group Discussion (FGD) hosted by Pusat Studi Energi - Universitas Gadjah Mada (PSE UGM), titled "CBAM Policy and Energy Transition Strategy: Perspectives from the Iron and Steel Industry." This event convened industry leaders and experts to explore the implications of the Carbon Border Adjustment Mechanism (CBAM) on Indonesia's export-oriented production processes.
The discussion focused on key themes: identifying government support for decarbonization efforts, accelerating the adoption of low-carbon technologies, analysing CBAM's economic impacts, identifying regulatory needs for energy transition, and providing feedback on preliminary studies conducted by PSE UGM. These discussions aimed to address the complex challenges posed by CBAM while guiding the iron and steel industry toward sustainable practices. GRP was represented by our Head of Sustainability, Sheren Omega.
In response, GRP has implemented strategic initiatives tailored to address these challenges. Priority has been given to enhancing energy efficiency within production processes, aiming to reduce carbon emissions and operational costs. Investments in innovative technologies and sustainable practices are integral to minimizing environmental impact and achieving emission reduction targets in longer term.
Additionally, GRP aligns with the Indonesia Iron and Steel Industry Association, emphasizing that support and alignment from government-related agencies are crucial for anticipating CBAM. This includes potential tax incentives and the development of Indonesia's Steel Decarbonization roadmap, which will guide industry players moving forward.
GRP's active participation in the FGD underscores our commitment to sustainability and innovation. By implementing comprehensive strategies and engaging in collaborative efforts, we aim to set benchmarks for Indonesia's steel industry. Together, we can navigate CBAM challenges and lead toward a sustainable and prosperous future.
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