The main objective of the GHG Protocol is to facilitate organizations in calculating and reporting their GHG emissions in a transparent and accurate manner. The protocol serves as a global standard that can be applied by various industry sectors and governments. In addition, the GHG Protocol aims to support the development of emission reduction strategies and sustainability policies. Furthermore, the protocol encourages investment in low-carbon technologies and energy efficiency, which are essential steps in mitigating climate change.

The GHG Protocol divides GHG emissions into three main categories:

1. Scope 1: Direct Emissions
   • Emissions that come directly from sources owned or controlled by the organization, such as the combustion of fuel in vehicles or production machinery.
2. Scope 2: Indirect Emissions from Purchased Energy
   • Emissions resulting from electricity, steam, heat, or cooling purchased and used by the organization.
3. Scope 3: Other Indirect Emissions
   • Emissions that come from activities outside the direct control of the organization, such as supply chain transportation, customer use of products, and waste management.

The GHG Protocol has a range of standards designed for specific sectors and different reporting needs, including:

• Corporate Standard: For companies in calculating Scope 1 and 2 emissions.
• Scope 3 Standard: To measure and manage indirect emissions (Scope 3).
• Mitigation Goal Standard: To measure progress in reducing emissions.
• Policy and Action Standard: To evaluate the impact of GHG related policies and actions.

The Indonesian government has adopted various policies to support the implementation of the GHG Protocol, including:

• Law no. 16 of 2016
  • Ratifying the Paris Agreement, which targets emission reductions of 29% (without international assistance) and 41% (with international assistance) by 2030.
• Presidential Regulation No. 98 of 2021
  • Regulates the Economic Value of Carbon (NEK), including carbon trading mechanisms to reduce GHG emissions in the industrial sector.
• PROPER (Environmental Performance Rating Assessment Program)
  • A program from the Ministry of Environment and Forestry (KLHK) that requires companies to report their GHG emissions.

• Increasing Global Market Demand
  • Many export companies are beginning to be required to report their emissions according to the GHG Protocol standards in order to enter the European and American markets.
• Investment in Renewable Energy
  • The government is pushing for a transition to green energy, with a target of 23% of the energy mix coming from renewable energy by 2025.
• Carbon Market Development
  • The implementation of carbon trading and carbon tax in Indonesia can encourage companies to be more active in reducing emissions.