JAKARTA – Greenhouse gas emissions due to human activities is one of the causes of global warming. The Palm Oil Agribusiness Strategic Policy Institute (PASPI) reported recently that around 65 percent of greenhouse gas emission was caused by the use of fossil fuels.

Based on various researches conducted in Indonesia and Europe, replacing the use of diesel fuel with palm oil-based biodiesel can reduce the greenhouse gas emission by around 50-60 percent.

“Even according to the European Commission, the replacement of diesel fuel with biodiesel from palm oil can reduce emission by up to 62 percent,” PASPI reported.

PASPI data shows that in Indonesia around 36 million tons of diesel fuel is consumed every year for vehicles and factories.

“If only 20 percent of the diesel fuel consumption is replaced with the palm biodiesel, we can reduce emission by 12 percent. If 30 percent replaced with the biodiesel, the emission from the diesel fuel can be reduced by around 18 percent,” PASPI reported.

Considering the reduction of emission from diesel fuel, the Indonesian government has applied the mandatory biodiesel production in Indonesia. Since 2020, the Indonesian government has replaced 30 percent of diesel fuel consumption with palm oil-based biodiesel 30 percent or B30. The government will upgrade the biodiesel program from B30 to biodiesel 40 percent (B40). Currently, the government is conducting a road test of B40.

PASPI stated that if Indonesia managed to replace 50 percent of its diesel fuel consumption with the palm biodiesel, it will reduce import of diesel fuel by 50 percent and significantly cut carbon emissions. The reduction of diesel fuel import will save the foreign exchange at least US$18 billion per year. (*)

Source: warta ekonomi.co.id