Evaluation of energy efficiency and renewable energy utilization in the road transportation sector of indonesia to reduce emissions in accordance with national contribution target

Abstract

The transportation sector in Indonesia is one of the largest contributors to GHG emissions after the energy sector, which holds 28.4% of total GHG. Based on data from 2019, the road transportation sector contributes for 70-80% of the emissions. The implementation of energy efficiency and the utilisation of renewable energy (RE) in the road transportation sector play a crucial role in reducing GHG emissions and achieving national climate change contribution targets. These policies are outlined in the Minister of Transportation of the Republic of Indonesia Decree (KEPMENHUB RI) No. KM 8 of 2023, which sets out concrete steps to be taken. Despite this policy, decarbonizing the road transport sector requires restructuring the way people move. The transformation should engage in four areas such as activity reduction, modal choice and supporting infrastructure, energy intensity, and fuel carbon intensity, which only can be successful by changing the human behaviour on consumption and intensify innovation and technology development. Carbon pricing can be the alternative to power this shifting. Theoretically, carbon pricing provides economic incentives for transport manufacturers and consumers to adopt mitigation measures. This research aims to analyse the effectiveness of KEPMENHUB RI No. KM 8 of 2023 in reducing road transport emission and identifying the potential complimentary policy such as carbon pricing scheme in transportation. The research methodology includes literature review, analysis of policy implementation data, and GHG emissions assessment model of each regulatory and policy implementation scenario. During the analysis process, the mitigation action policies in KEPMENHUB RI No. KM 8 of 2023 are categorised according to the Avoid, Shift, Improve (ASI) framework. Policy, emission, environment, and market factors are applied to the GHG emissions assessment model. Final results highlight the extent of realisation, level of effectiveness, and the ease of implementation for each scenario.