FACILITATING GREENHOUSE GAS EMISSION REDUCTION IN PALM OIL SECTOR USING MARGINAL ABATEMENT COST CURVE METHODOLOGY

Abstract

At present, the palm oil sector is one of the greenhouse gas (GHG) emitters in Indonesia. Numerous reduction strategies have been developed for operational and technical measures, but the industry is relatively unaware of how much potential for mitigation exists and how much it would cost to realize this potential. Policymakers use marginal abatement cost curves (MACC) to analyze and rank existing abatement measures based on costs and mitigation potential to design cost-effective decarbonization policies. The objective of this study is to propose a MACC methodology framework for calculating the potential for emission reductions and cost savings relative to a reference technology. The results of this study show the structure of MACC methods combination reference, in which eight elements serve as references to create a methodological framework. Then, the methodology framework, consisting of identify, generate, and validate phase, is created to assess and evaluate the four main parameters which are cost savings, abatements, complexity, and benefits for each technology to support decision-makers making a more suitable decision about which actions to take to accomplish maximum emission reduction target. Further experimentation is recommended to test the proposed framework to rank the mitigation technology in the palm oil sector