Indonesia – HeidelbergCement signs first Indonesian carbon finance deal

Indonesia – HeidelbergCement signs first Indonesian carbon finance deal
Published: 09 June 2004

Indocement, part of the HeidelbergCement group, has signed an agreement with the World Bank-managed Prototype Carbon Fund (PCF) regarding the sale of CO2 reduction certificates as part of a Clean Development Mechanism (CDM) project covering the 2005-2012 period. Under the CDM investments in emission reduction measures in developing countries are recognised in the form of emission certificates, which can be used or sold in the EU Emission Trading Scheme.

The project is a first in the Southeast Asian cement industry and has received strong support from the Indonesian government. The introduction of low-clinker quality cements and the consolidation of secondary fuel use will result in the elimination of 0.5Mta of CO2 over the next 10 years. Mr Oivind Hoidalen, Indocement’s technical director said : “We believe, that the combination of our expertise in cement technology and the PCF’s knowledge about the CDM will lead us to success.” From an environmental point-of-view, Mr Hoidalen commented: “In addition to reducing greenhouse gas emissions, the use of biofuels and other waste materials produced in the proximate areas of the sites, our project will contribute to sustainable development in a socially responsible way.”