Eligible for Carbon Credit, INOV Is Increasingly Active in Sustainable Business Expansion Across Indonesia
By : Nata Kesuma | Tuesday, April 18 2023 - 13:58 IWST
PT Inocycle Technology Group Tbk (INOV)
INDUSTRY.co.id - Jakarta, April 17th, 2023 – PT Inocycle Technology Group Tbk (INOV), a listed company engaged in recycling plastic bottle waste (PET) into Recycled Polyester Staple Fiber (RePSF), eligible for carbon credits, which are tradable certificates that represent reductions in carbon dioxide or other greenhouse gases.
This is because both the business model and the results of the Company’s core business, namely the recycling of PET (Polyethylene terephthalate) plastics, help reduce carbon dioxide emissions or other greenhouse gases.
In the reducing carbon dioxide emissions, the Company has been certified by an independent party for emission audits, namely Planet Mark from UK. The results of the Planet Mark emission audit show, that INOV in 2022 managed to reduce carbon by 27% per employee compared to 2021.
"In addition to fact that the Company itself aims to reduce its carbon footprint, INOV also fulfills the requirements to get carbon credits as a result of its core business, namely recycling PET waste, which significantly reduces greenhouse gas emissions that should be produced in the manufacture of new PET products," said the Director of INOV, Victor Choi.
INOV's eligibility for carbon credits and traceability are significant steps in the Company's mission to create a more sustainable future. By reducing waste and emissions, INOV takes the lead in creating a circular economy that benefits the environment and the economy which are in line with Indonesia's decarbonization goal in 2060.
As regulated by the government in the Provisions for the Issuance and Use of Indonesian Emission Reduction Certificates, the basic requirements to be able to issue Indonesian Certified Emission Reduction (ICER) certificates are; First, emission reductions must be real, permanent, measurable, monitored and reported.
Second, mitigation actions are not business-as-usual practices. Third, the resulting emission reductions cannot be registered as carbon credits in other schemes. In this case, the mitigation action for reducing greenhouse gas emissions must be verified by a competent and authorized party in the context of issuing an ICER.* Thus, based on these provisions, INOV has the potential to benefit in accordance with carbon credit provisions.
Therefore, INOV is increasingly active in expanding into sustainable business activities throughout Indonesia. The company, which has operated factories and washing facilities in 9 cities, such as Tangerang, Solo, Mojokerto, Salatiga, Palembang, Medan, Gowa, Takalar and Subang, continues to expand its facilities every year, even during the pandemic they opened facilities new in Medan and Makassar. The company has also expanded a new washing facility earlier this year in the Subang area.