Jakarta, 21 February 2023: Applying existing and affordable fuels and energy technologies to expand the use of natural gas is one way to reduce greenhouse gas emissions. That was the gist of the message delivered by Prof Hidetoshi Nishimura, President of the Economic Research Institute for ASEAN and East Asia (ERIA), at a workshop on Prospects of a Natural Gas Market in the East Summit (EAS) Region Amidst Carbon Neutrality Pledges and Geopolitical Tensions. Held at Fairmont Hotel in Jakarta, the workshop was sponsored by ERIA and the Gas Exporting Country Forum (GECF).

Prof Nishimura said that decarbonising energy systems requires the rapid scaling up of existing cleaner energy sources and technologies with essential support for policy, fiscal, and monetary incentives, and appropriate market design.

Delivering the workshop’s opening remarks was H.E. Eng Mohamed Hamel, GECF’s Secretary General, who forecast that in the ASEAN region, natural gas demand was expected to more than double, rising to more than 350 billion cubic metres by 2050.

H.E. Mr Arifin Tasrif, Indonesia’s Minister of Energy and Mineral Resources, citing the country’s natural gas potential, said that the challenges are developing the infrastructure connecting the pipeline from western to eastern Indonesia, and creating a new policy framework to attract investment into the natural gas market. He mentioned that the use of natural gas has diversified into the fertiliser, petrochemical, and glass industries, amongst others.

The Economic Research Institute for ASEAN and East Asia (ERIA) – the secretariat of the Asia CCUS Network (ACN) – co-organised a Think Tank20 (T20) event on 20 July 2022 to explore realistic green financing schemes for emerging economies. The event also sought to provide research-based policy recommendations and input for G20 leaders on the topic of climate change and energy transition. The Institute of Economic and Social Research Faculty of Economics and Business, University of Indonesia (LPEM-FEB UI) also co-organised the webinar entitled 'Emerging Economies towards Net Zero Emission: Challenges and Opportunities on Technology Innovation and Financing.’

The Economic Research Institute for ASEAN and East Asia (ERIA) – the secretariat of the Asia CCUS Network (ACN) – co-hosted the G20 Side Event Series entitled ‘Escalating the Role of Gas in Energy Transition’. As the main host, the Ministry of Energy and Mineral Resources (MEMR), Directorate General of Oil and Gas, Republic of Indonesia gathered a distinguished group of policymakers and industry players to discuss how natural gas can abate carbon emissions and serve as a more stable future energy supply.

The inclusion of natural gas in the global energy mix will be integral as the world deepens its energy transition process and increased energy demand in the future becomes inevitable. Economic and population growth poised to occur in the Asia Pacific and other regions will significantly intensify energy consumption. These trajectories come amidst the backdrop of net-zero commitment targets by 2050 by the Global 20 (G20) states as well as ASEAN Member-States. To resolve the challenge of striking a balance between clean energy targets and ensuring affordable energy, the role of gas is especially crucial.

Indonesia remains steadfast in realising its ambitions of deploying carbon capture, utilisation, and storage (CCUS) technologies whilst ensuring the affordability of this carbon-reducing innovation. With Indonesia at the helm of this year’s Global 20 (G20) Summit, the country’s headway in carbon-neutral technologies is demonstrative of emerging markets’ potential in the sector as Southeast Asia forges ahead with its net-zero emissions target.

The Economic Research Institute for ASEAN and East Asia (ERIA) – the secretariat of the Asia CCUS Network (ACN) – co-hosted the G20 Side Event Series entitled ‘Making CCS/CCUS Affordable: Enabling CCUS Deployment in G20 and Beyond’ on 13 April 2022. As the main host, the Ministry of Energy and Mineral Resources, Directorate General of Oil and Gas, Republic of Indonesia brought together a prominent group of industry leaders and policymakers to discuss the progress and future of this critical carbon-reducing innovation in developing countries.