info@gbcindonesia.org
(+62) 21 2960 8012
Jakarta, Indonesia
info@gbcindonesia.org
(+62) 21 2960 8012
Jakarta, Indonesia
Net Zero Strategic Direction
Increase understanding and awareness of best practice relating to carbon offsetting and pricing to drive consistency and increase creditability of net zero claims.
Provide a better understanding of carbon pricing as an approach to decarbonising economic activities and any broader aims including innovation, revenue generation, behaviour change and community benefits.
To provide clarity on market- leading approaches to offsetting.
To expand on existing offsetting guidance and provide more detail where needed, including alignment with emerging standards and guidance, such as Integrity Council for the Voluntary Carbon Market (ICVCM).
Created in 2018 as part of a World Green Building Council initiative, GBC Indonesia Advancing Net Zero programme has a mission to lead the Indonesian transition to a net zero built environment.
Governments around the world are tightening regulations on energy use and emissions from buildings. Companies must adapt to these changes to avoid penalties and to comply with local and international laws that are moving towards stricter sustainability benchmarks. There are often financial incentives, such as tax breaks, and disincentives such as carbon tax
Investors are increasingly attentive to sustainability, recognizing that properties with better environmental performance have higher market values and are less risky. Stakeholders, including tenants and customers, also demand greener, healthier spaces, influencing companies to invest in sustainable buildings.
As awareness of climate change increases, consumers are more frequently choosing brands that demonstrate environmental responsibility. Companies adopting net-zero commitments can enhance their brand reputation and customer loyalty.
Achieving net-zero can differentiate a company from its competitors, making it a leader in sustainability. This can be a significant advantage in industries where environmental impact is a critical factor in consumer decisions.
Climate change poses physical risks to operations, supply chains, and markets. Companies adopting net-zero strategies for their buildings can mitigate these risks, ensuring more stable and secure operations.
Energy-efficient buildings typically cost less to operate. By moving towards net-zero, companies can drastically reduce their energy expenses. Energy prices are volatile, and reducing dependency on fossil fuels mitigates financial risk.
Companies are increasingly aware of their role in global issues like climate change. Adopting net-zero commitments is part of fulfilling their ESG objectives, demonstrating responsibility to shareholders, Environment, customers, and the community.
The integration of GREENSHIP Net Zero standards into ESG reporting is crucial for the construction sector's alignment with Net Zero commitments and strategies. This approach enhances transparency and accountability, providing detailed insights into how companies are reducing their environmental impact through sustainable building practices. By adopting these standards, construction firms can offer concrete, verifiable evidence of their progress toward Net Zero goals, essential for stakeholders such as investors, clients, and regulatory bodies. The use of GREENSHIP Net Zero in ESG reporting not only showcases a company's commitment to sustainability but also demonstrates adherence to stringent environmental criteria, encompassing energy efficiency, sustainable material use, and waste reduction. This transparency is pivotal in attracting investments and maintaining compliance with increasingly rigorous environmental regulations
the strategic use of GREENSHIP Net Zero within ESG frameworks encourages innovation and enhances competitiveness in the construction sector. Companies are motivated to explore new sustainable materials and technologies to meet high green building standards, fostering innovation that benefits both the environment and their operational bottom line. This push towards sustainable innovation is also aligned with global investment trends, where there is a growing preference for businesses that mitigate environmental risks and offer long-term sustainability. By positioning themselves as leaders in sustainable practices, construction firms not only enhance their market appeal but also prepare for future regulatory changes and expectations. In this way, ESG reporting that incorporates GREENSHIP Net Zero standards becomes a cornerstone in driving the sector towards sustainable development and achieving Net Zero emissions, securing a resilient and prosperous future for the construction industry.
Indonesia's pursuit of a net-zero future is significantly anchored in the strengthening of its carbon ecosystem, an integrated approach that melds technological innovation, policy reform, and sustainable finance. This holistic strategy is aimed at reducing both operational and embodied carbon emissions within key sectors such as construction, energy, and transportation, thereby accelerating the country's transition towards sustainable development. Central to this endeavour is the implementation of green building standards, and the adoption of renewable energy technologies. Such initiatives are supported by robust policy frameworks, including carbon pricing mechanisms and incentives for low-carbon technologies, positioning Indonesia to meet its ambitious climate targets while fostering economic growth and resilience against climate risks.
Embracing the principles of the circular economy means reimagining and reshaping the way products and processes are designed to reduce waste and maximize resource utilization. This strategy prolongs the life of materials through recycling and reuse, encouraging innovation in both product development and supply chain operations. For businesses, adopting circular practices not only lessens their ecological footprint but also enhances cost-effectiveness and generates new opportunities by exploring emerging markets dedicated to circular goods and services.
Green finance refers to various financial instruments and services aimed at backing projects with environmental and climate benefits. It significantly contributes to the shift towards a sustainable economy by directing investments towards sustainable infrastructure, renewable energy sources, and technologies that enhance energy efficiency. For companies, tapping into green finance offers fresh opportunities for investment and expansion, positioning them to capitalize on the growing market appetite for sustainable practices and solutions.
Implementing a carbon tax, a financial charge on the carbon dioxide content of fossil fuels acts as a strong economic incentive for lowering greenhouse gas emissions. It encourages companies to factor in the cost of carbon emissions into their operations, motivating them to seek out and adopt greener, more efficient technologies and methods. This approach not only aids in diminishing the ecological footprint of business activities but also elevates firms to the forefront of the shift towards a greener economy. Furthermore, the funds collected through carbon taxes can be channelled back into initiatives supporting renewable energy, thereby enhancing the positive impacts of this policy.
Our framework to guide the transition towards Net Zero buildings, emphasizing the integration of sustainable design principles, energy efficiency, and renewable
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The adoption of a GREENSHIP Net Zero in Indonesia presents a multitude of opportunities and benefits that are pivotal for the country's carbon offset goals in the coming future.
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GREENSHIP Net Zero certification process with a comprehensive workflow designed to guide projects from initial design through to operation, focusing on achieving specific targets for energy efficiency.
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in the net zero movement with the Green Building Council Indonesia offers a unique opportunity to contribute to sustainable building practices in one of the world's most dynamic emerging markets
GBC Indonesia is an Established Member of World Green Building Council. World GBC is a global action network comprised of around 70 Green Building Councils around the globe.
(+62) 21 2960 8012
info@gbcindonesia.org
