1. LIFE CYCLE ASSESSMENT IN AGROINDUSTRIES DIRECTORAT GENERAL FOR POLLUTION CONTROL AND ENVIRONMENTAL DEGRADATION

2. BACKGROUND – DEMAND ON LCA Agro-industries: natural resource based industries, depend on the continuity of supply of natural resources for development and sustainability. Proper environmental assessment tool: essential to address both issues. Agro-Industries : several environmental issues are related such as climate change, eutrophication, acidification, biodiversity loss, nature occupation (land-use), and its consumption pattern. Those issues need to be reduced urgently and shifted towards sustainable agro-industries production and consumption. Life Cycle Assessment (LCA): a tool to evaluates all stages of a product's and consumption’s life, either for natural resources use – land, water, energy -, and environmental impact. MID TERM NATIONAL DEVELOPMENT PLAN (2015 – 2019): MID TERM NATIONAL DEVELOPMENT PLAN (2015 – 2019): National Target for GHG Emission Reduction : 26% BAU (2019) Environmental Quality Index : 66.5 – 68% (existing: 45,89 for Water Quality Index and 80 for Air Quality Index) Environmental Quality Index : 66.5 – 68% (existing: 45,89 for Water Quality Index and 80 for Air Quality Index)

3. WHY PALM OIL Second most successful agriculture product and the largest agriculture export provides a mean of income and economic development to Indonesia’s rural poor. – contributes 14% of Indonesian GDPs and provides increasing 65% revenues from US$ 10.4 billion at 2009 to US$ 15.8 billion at 2013. (Ministry of Trade,2013)- Increasing demand and supply of palm oil products world wide. Consideration for environmental impact from palm oil production are strongly required. Concern on sustainability of palm oil production in global market tend to increase time to time.

4. STAGES OF LCA - PALM OIL Source: LCA MANUAL FOR PALM OIL PRODUCTION, 2014 SUPPORTING FACILITIES: 1.Guideline – Manual. 2.Capacity Building for Palm Oil Industries, Local and State Government Officials. 3.Database – Web based for National Inventory → in process. SUPPORTING FACILITIES: 1.Guideline – Manual. 2.Capacity Building for Palm Oil Industries, Local and State Government Officials. 3.Database – Web based for National Inventory → in process.

5. LCA - PALM OIL Source: LCA MANUAL FOR PALM OIL PRODUCTION, 2014

6. PROFILE FROM THE 2011 ENVIRONMENTAL IMPACT ASSESMENT OF LCA - PALM OIL PROFILE FROM THE 2011 ENVIRONMENTAL IMPACT ASSESMENT OF LCA - PALM OIL Methane Collection set in place No Methane Collection set in place Source: FINAL REPORT OF LCA INVENTORY - 2011

7. TYPE OF WASTETECHNOLOGIESPRODUCTSIMPACT - REDUCTION EFB CombustionSteam, ElectricityReduction of coal/natural gas consumption BiogasificationSteam, Electricity, liquid fertilizer (Methane gas) Conversion into Fertilizer FertilizerThe consumption of chemical fertilizer is reduced ProcessingWood chips, mulching material, cushioning material, chemical raw material. The consumption of natural resources is reduced Shell, Fiber CombustionSteam, ElectricityThe consumption of Coal/natural gas is reduced Conversion into Fertilizer FertilizerThe consumption of chemical fertilizer is reduced POMEBiogasificationSteam, Electricity, liquid fertilizer (Methane gas) The consumption of Coal/natural gas is reduced STRATEGY FOR EMISSION LOAD REDUCTION – PALM OIL MILL Source: FINAL REPORT OF LCA INVENTORY - 2011

8. TYPE OF WASTE PRODUCT/ FFB ANNUAL GENERATION IN INDONESIA UTILIZATION RATION IN INDONESIA (assumption) ANNUAL GHG EMISSION REDUCTION EFFECT FOR USE GHG EMISSION REDUCTION SCENARIOS EFB0.137t14Mt10%4,300kt-CO2eqBy reducing the consumption of natural gas for combustion Shell, Fiber 0.178t18Mt80%1,600kt-CO2eqBy reducing the consumption of natural gas for combustion POME0.6m361Mm35%20,000kt-CO2eqBy reducing the consumption of natural gas for biogas combustion, and/or by reducing the methane gas GHG EMISSION REDUCTION FROM EMISSION LOAD REDUCTION STRATEGY – PALM OIL MILL GHG EMISSION REDUCTION FROM EMISSION LOAD REDUCTION STRATEGY – PALM OIL MILL Source: FINAL REPORT OF LCA INVENTORY - 2011

9. LESSON LEARNT AND NEXT AGENDA BENEFIT FOR INDUSTRIES -BASE ON COMMENT FROM INDUSTRIES- 1.LCA result provide data and information regarding the Industrial performance either on GHG emission and pollution load reduction or its efficiency. 2.Base on the LCA result, Palm Oil Industries may have opportunities to readjust the strategies and target set in place for improvement on:  mitigation of GHG emission and other Pollutant substances;  efficiency on natural base and non natural base resources. BENEFIT FOR INDUSTRIES -BASE ON COMMENT FROM INDUSTRIES- 1.LCA result provide data and information regarding the Industrial performance either on GHG emission and pollution load reduction or its efficiency. 2.Base on the LCA result, Palm Oil Industries may have opportunities to readjust the strategies and target set in place for improvement on:  mitigation of GHG emission and other Pollutant substances;  efficiency on natural base and non natural base resources. GOVERNMENT – POLICY MAKERS: 1.Provide profile of Palm Oil Industries’ achievement on GHG emission and pollution load reduction or its efficiency. 2.Time Series data of LCA-Palm Oil will be essential for policy evaluation and improvement. This will also support in determining the new instrument or policy need to be developed to:  meet the National target on GHG emission and pollution load reduction.  encourage efficiency in Palm oil production GOVERNMENT – POLICY MAKERS: 1.Provide profile of Palm Oil Industries’ achievement on GHG emission and pollution load reduction or its efficiency. 2.Time Series data of LCA-Palm Oil will be essential for policy evaluation and improvement. This will also support in determining the new instrument or policy need to be developed to:  meet the National target on GHG emission and pollution load reduction.  encourage efficiency in Palm oil production RELEVANT POLICY TO LCA – PALM OIL: 1.PROPER – Industrial Performance Rating on Environmental Management-, 2. ISPO – standardization for Indonesia sustainable palm oil, mandatory-. RELEVANT POLICY TO LCA – PALM OIL: 1.PROPER – Industrial Performance Rating on Environmental Management-, 2. ISPO – standardization for Indonesia sustainable palm oil, mandatory-. NEXT AGENDA: 1.Improvement for current LCA – PALM OIL : provide web-base database for Industries to entry data from website, improve data set involving more palm oil industries, update system for the data set for tracking progress. 2.Next Agenda :  developing LCA for other Agro-industries such as Fisheries and Cassava Starch industries.  water foot print for Palm Oil Industries, Fisheries and Cassava Starch industries  improvement in information sharing NEXT AGENDA: 1.Improvement for current LCA – PALM OIL : provide web-base database for Industries to entry data from website, improve data set involving more palm oil industries, update system for the data set for tracking progress. 2.Next Agenda :  developing LCA for other Agro-industries such as Fisheries and Cassava Starch industries.  water foot print for Palm Oil Industries, Fisheries and Cassava Starch industries  improvement in information sharing

10. MINISTRY OF ENVIRONMENT AND FORESTRY Jl. D.I. Panjaitan Kav 24 Jakarta 13410