Addressing UN Sustainable Development Goals in the ASEAN Coal Value Chain
Introduction
The ASEAN region, with a combined population of 671.7 million and a GDP of USD 3.6 trillion, is experiencing rapid economic growth and industrialization. Coal has played a crucial role in this growth by providing affordable, reliable, and modern energy services. According to projections, energy demand is expected to triple from 2005 levels, reaching 1,281 Mtoe by 2050, with electricity consumption growing at an average annual rate of 4.4%.
Key Contributions of Coal in ASEAN
-
Energy Security: Coal capacity in the power sector was 84.1 GW in 2020 and is expected to increase by about 250% by 2040. Even as renewable energy (RE) becomes more prevalent, coal is expected to remain a vital source of flexible and secure generation.
-
Economic Growth: Coal exports generate revenue that supports infrastructure development, social services, and improved living conditions. The industry also creates significant job opportunities and contributes to economic stability.
-
Socio-Economic Development: Coal supports the achievement of several United Nations Sustainable Development Goals (SDGs), including:
- Affordable and Clean Energy (SDG 7): Coal provides a stable and affordable energy source.
- Decent Work and Economic Growth (SDG 8): The industry supports job creation and economic growth.
- Strengthened Infrastructure and Innovation (SDG 9): Coal projects contribute to infrastructure development and technological advancements.
- Efficient and Responsible Consumption and Production (SDG 12): Modern coal practices aim to reduce waste and improve efficiency.
Case Studies
Several companies in the ASEAN region demonstrate how coal contributes to specific SDGs:
- PT Cikarang Listrindo Tbk (Indonesia): Supports SDGs 7, 8, 9, and 12 through efficient energy production and job creation.
- PT Bumi Resources Tbk (Indonesia): Focuses on SDGs 7, 8, and 12, emphasizing energy security and economic growth.
- PT Bukit Asam Tbk (Indonesia): Contributes to SDGs 7, 8, and 12, highlighting infrastructure development and responsible production.
- PT PLN (Persero) (Indonesia): Supports SDGs 7, 8, and 12, focusing on energy security and job creation.
- Electricity Generation Authority of Thailand (EGAT): Works on SDGs 7, 8, and 12, promoting energy security and economic growth.
- Bayan Group (Indonesia): Addresses SDGs 3, 4, and 12, focusing on health, education, and responsible production.
- San Miguel Corporation (Philippines): Supports SDGs 4 and 12, emphasizing quality education and responsible consumption.
- Adaro Group (Indonesia): Works on SDGs 8, 9, and 12, focusing on economic growth, infrastructure, and responsible production.
- PT Virtue Dragon Nickel Industry (Indonesia): Addresses SDGs 5 and 12, focusing on gender equality and responsible production.
- PT Bintang Samudera Mandiri Lines (Indonesia): Supports SDG 14, focusing on marine conservation.
Carbon Capture and Storage (CCS)
The report highlights the potential of CCS as a technology to reduce carbon emissions, contributing to SDG 13 (Climate Action).
Conclusion
The role of coal in the ASEAN region is multifaceted, supporting economic growth, energy security, and social development. While acknowledging the challenges, the report emphasizes the need for a balanced approach that considers both traditional and renewable energy sources, ensuring a sustainable future.