Indonesia's Nickel Industry Aims for 81% Emissions Reduction by 2045 Amid Growing Demand
Indonesia, the world's largest nickel producer, aims to reduce emissions from its nickel industry by 81% by 2045, with plans to shift to a renewable energy mix of 61% hydropower, 30% solar, and 9% wind. Currently, 90% of nickel processing facilities rely on coal, contributing significantly to national emissions; the government’s roadmap includes improving efficiency and transitioning to cleaner energy sources. This initiative could set a precedent for responsible nickel production globally.
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Indonesia, the largest nickel producer, aims to reduce emissions from its nickel industry by 81% by 2045. In 2023, nickel production reached 2.2 million tons, contributing to 22% of national emissions from energy and industry.
The Indonesian government plans to increase the share of renewable energy in nickel production, targeting an electricity mix of 61% hydropower, 30% solar, and 9% wind by 2045. The roadmap proposes clear development plans, an attractive investment ecosystem, and government financing support to facilitate the transition.
Currently, 90% of nickel processing facilities rely on coal, with smelting accounting for 97.9% of carbon emissions in the sector. The roadmap emphasizes efficiency improvements and the substitution of coal with natural gas and biochar to further reduce emissions. Indonesia's approach may influence global standards for responsible nickel production.
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