Methodology Underlying Indonesian Corporates Decarbonization Evaluator (INCODE)

Abstract

The urgency to significantly decarbonize is increasing with the rising frequency of natural disasters caused by climate change. In 2019, the industrial sector produced more than 3 billion tons of carbon dioxide equivalent (CO2eq) (Ritchie et al. 2023) and played a crucial role in the reduction of global greenhouse gas (GHG) emissions, due also to substantial cross-sector emission contributions. The reduction of GHG emissions in the industrial sector can be achieved with proper and ambitious decarbonization planning, but formulating decarbonization strategies for the industrial sector is complex due to supply chain activities related to various sectors. Furthermore, the tools currently available are generally not easily accessible and have not integrated emission reduction with the impacts and costs generated. Recognizing this complexity, the Indonesian Corporates Decarbonization Evaluator (INCODE) was developed as an Excel-based tool that is easy to use, accessible, and comprehensive for the development and evaluation of net-zero emission strategies employed by companies involved in the industrial sector. In performing its functions, INCODE consists of two tools, namely the Corporate Greenhouse Gas Inventory Tool for Scopes 1, 2, and 3 (AIGRK) and the Decarbonization Evaluator Tool (AED). These two tools will offer four different features: emissions inventory, emission reduction evaluation, cost evaluation, and impact evaluation.