Methane (CH4) is a greenhouse gas (GHG) that is 30 times more potent at trapping heat in the atmosphere than carbon dioxide (CO2). Therefore, methane causes global warming more rapidly.
One of the biggest contributors to methane emissions is the coal mining sector. Methane emissions from Indonesian coal mines have increased significantly, from 16 kilotons (kt) in 2000 to 128 kt in 2019.
However, the global energy research institute EMBER revealed that the Indonesian government’s methane emissions figures from coal mines were 6-7 times lower than those of several independent studies.
The government’s data is quite weak due to a lack of data transparency, the use of inaccurate emission factors, the use of outdated global warming potential conversion factors due to methane, and the failure to account for underground coal mining emissions.
This was also revealed in the research ‘Improving GHG Emissions Transparency in the Coal Sector through the EITI 2023 Standard’, compiled by the Extractive Industries Transparency Initiative (EITI) Indonesia together with the Publish What You Pay (PWYP) Indonesia coalition.
The research found that coal mining companies have not reported complete and transparent emissions data. Reports often focus on CO2 emissions and neglect emissions from other greenhouse gases.
Methane is also overlooked. According to the EMBER (2024) report, six of the ten largest coal companies in Indonesia have not reported methane emissions. Yet, methane is a major contributor to GHG emissions from the coal mining sector.
One researcher, Astrid Meliala, stated that every coal mining operation produces various GHG emissions. Therefore, it’s important to report emissions separately, including methane emissions.
“Emissions reporting also serves as a public oversight instrument for monitoring the climate impacts of mining activities,” he said.
From an economic and sustainability perspective, this report serves as a reference for investors and banks to assess the extent of companies’ commitments to controlling emissions. It also helps the government determine more accurate national emissions reduction targets.
No Data Reference
Publicly accessible company emissions data is limited to data from issuers bound by Financial Services Authority (OJK) Regulation Number 51 of 2017, through the Sustainability Report submitted annually.
“If we’re talking about coal, there are around nine publicly listed coal companies that are required to submit Sustainability Reports,” said Adzkia Farirahman, one of the researchers.
This number only covers a small portion of the total number of Mining Business Permit (IUP) holders, which reaches thousands of companies.
In addition, the report is considered incomplete, as it does not cover all emission sources and does not use uniform emission factors and reporting methodologies.
“There are technical aspects that need to be addressed, and that’s the government’s responsibility, such as how to calculate emission factors,” Adzkia said. With these standards in place, companies will find it easier to calculate and report their emissions.
In line with this, the Executive Director of the Indonesian Coal Mining Association (APBI), Gita Mahyarani, said that companies need the availability of supporting data and guidance from the government, especially regarding emission factors as the basis for calculation conversions.
“There are several emission factors already available, for example for electricity or diesel, but for fuels that are increasingly used today, such as B40, the available emission factors are very limited,” said Gita.
Gita also explained the difficulties faced by coal mining companies in Indonesia, most of which operate open pits, in reporting methane emissions. Referring to the Intergovernmental Panel on Climate Change (IPCC), Gita said, calculating methane emissions requires specialized equipment and re-mining to achieve accurate results.
“So the calculations are very difficult,” he said.
Government Prepares Technical Guidelines
The government, through the Ministry of Energy and Mineral Resources, is currently preparing technical guidelines for GHG inventories in the mineral and coal sectors. The guidelines, scheduled for completion in 2029, are expected to facilitate emissions reporting by companies.
Surya Herjuna, Director of Coal Business Development at the Ministry of Energy and Mineral Resources, stated that these guidelines cover how to calculate methane emissions from the mining sector. However, he acknowledged that no tools are yet available to facilitate the recording of methane emissions from open-pit mining operations.
However, he said, well-disclosed emissions data helps evaluate a company’s activities. If emissions are increasing, mitigation efforts are needed. Conversely, if emissions are decreasing, it indicates the company’s strategy is appropriate.
Source: Kata Data