Jakarta, Indonesia Sentinel — Bank Indonesia (BI) has launched a new tool, the “Green Calculator,” designed to measure corporate emissions, marking a significant step towards fostering sustainable finance. Unveiled on Wednesday, October 2, 2024, the Green Calculator is an application aims to provide a credible national reference for calculating emissions produced by business activities, complementing the country’s sustainable financial ecosystem infrastructure.
This innovative tool will help banks and businesses streamline their sustainability reporting, a requirement set by both national regulators and global markets. The Green Calculator is the result of a collaboration between Bank Indonesia and the Coordinating Ministry for Maritime and Investment Affairs (Kemenko Marves).
Available for download on Android and iOS devices, the Green Calculator allows financial institutions and businesses to easily track and report their carbon emissions. This Green Calculator is an application whose emission measurement components will continue to be developed by BI and the Coordinating Ministry for Maritime Affairs and Investment.
The initial version focuses on Scope 1 and Scope 2 emissions, which include those produced from fuel consumption and electricity use. As the tool develops, it will expand to include Scope 3 emissions, covering a broader range of emission-producing activities, in line with global standards.
Through the launch of the Green Calculator, Bank Indonesia aims to provide greater access to green investment and financing, ultimately contributing to monitoring the “greenness” of economic activities and tracking the nation’s transition towards a green economy.
Measuring Progress Toward a Green Economy
BI Deputy Governor Juda Agung outlined three key benefits of the Green Calculator for the banking and business sectors. First, it allows companies to monitor how green their economic activities are and track their progress towards a sustainable economy.
“With this Green Calculator, we now have a standardized method for measuring carbon emissions, allowing us to assess companies’ carbon footprints,” said Agung at the launch event at BI’s headquarters in Jakarta.
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The second benefit is that the tool simplifies the sustainability reporting process required by regulators and global markets. The third advantage is that it opens up broader access to green financing and investment opportunities for businesses and the financial sector.
“This is a living tool. For example, it can be used in factories to measure fuel consumption in production processes or electricity usage from the national grid. In the future, its scope will expand to encompass all emission-producing activities, making the calculations even more complex,” Agung added.
Accurate Emission Tracking with National Data
Nani Hendiarti, Deputy for Environmental and Forestry Management Coordination at Kemenko Marves, emphasized that the Green Calculator utilizes national emission factors approved by the Ministry of Environment and Forestry. This ensures the calculations are accurate and tailored to Indonesia’s specific characteristics.
With the Green Calculator, Bank Indonesia hopes to promote greater awareness and accountability regarding carbon emissions while supporting the nation’s goals of reducing its environmental impact and accelerating the transition to a more sustainable, low-carbon economy.
(Raidi/Agung)
