Pertamina NRE gets ADB grant for green

initiative

PT Pertamina New & Renewable Energy (Pertamina NRE), the renewables arm of
state-owned oil and gas firm PT Pertamina, has received a grant from the Asian
Development Bank (ADB) for the nature based solutions (NBS) initiative which it is
currently implementing in collaboration with state-owned forestry company Perum
Perhutani.
Pertamina said in a statement Friday that the grant will support the implementation of
operational analysis by technical consultants of two NBS concessions.
It added that the ADB provided the grant to Pertamina NRE for its strong commitment
in implementing green initiatives, one of which is NBS. The grant will support
Pertamina NRE's efforts as a carbon market aggregator within the Pertamina Group as
well as within state-owned enterprises (SOEs) to achieve the 2060 net zero emission
target.
“We thank ADB for the support provided. This support shows that financial
institutions have optimism and confidence in the prospects of nature based solutions
initiatives. We are optimistic that with this support, the NBS collaboration between
Pertamina NRE and Perhutani will reap positive results,” said Fadli Rahman, Director
of Strategic Planning and Business Development of Pertamina NRE in the statement.
Pertamina NRE and Perhutani signed a heads of agreement (HoA) on 20 June 2023 on
collaboration in the NBS project, followed by the signing of the master agreement
(MA) on 20 February 2023.
The two companies have identified 9 potential concessions belonging to Perhutani for
the NBS initiative. Currently, Pertamina NRE is finalizing feasibility studies on two
concessions. From these two concessions, the potential for carbon credits to be
generated is up to 25 million tons for 30 years, the statement said.
The collaboration between the two entities will continue with the development of the
7 other concessions. In total, this cooperation project has the potential to reduce 7
million tons of CO2e per year, or cumulatively 20 million tons of carbon credits by
2030, the statement said.
NBS implementation plays a vital role in efforts to control climate change. In addition
to reducing greenhouse gas (GHG) emissions, the implementation of NBS, especially
through conservation practices, will also protect biodiversity, provide jobs and
strengthen food security for local communities.