Top companies in Asia say they are standing behind the Paris climate accord reached last year, regardless of what path the U.S. takes.

That includes at least one major producer of palm oil, a product whose plantations are often associated with deforestation and air pollution caused by the burning of land to make way for them.

"We will continue to emphasize our priorities and keep climate at the top of the agenda," John Hartmann, chief executive Cargill Tropical Palm Holdings Pte. Ltd., wrote in an email.

A subsidiary of U.S. commodities giant Cargill Inc., with palm-oil plantations in Indonesia and Papua New Guinea, Cargill Tropical Palm says it remains committed to efforts to prevent deforestation and invest in renewable energy sources.

A number of other corporate leaders, from Australia to Japan, said they also would stand firm on plans to reduce their carbon footprints, even as U.S. President-elect Donald Trump has created uncertainty about the climate-change accord formed last year in Paris and now agreed to by nearly 200 nations. Top executives with many big American corporations also have said they would follow through on their plans to shrink their carbon profiles, even with Mr. Trump's skeptical view of some Obama administration environmental policies.

Asia is a leading source of global emissions. Commodities and dirty energy have long supported the region's economic growth, and meeting the commitments set out in the Paris accord will remain a challenge. Some countries with fast-growing demand for affordable power are planning new coal plants, for example. Asia is also home to emissions-producing industries such as mining, including for coal, and to the world's top palm-oil producer: Indonesia.

Under the Paris agreement, Indonesia has pledged to cut its greenhouse gas emissions by 29%, the majority of which (17.3%) will come from efforts to reduce deforestation and burning. Lawmakers ratified the pact earlier this fall.

Fires set last year to clear land for plantations and other development in Indonesia broke records for their size and released more greenhouse gases into the atmosphere each day over several weeks than did the entire U.S. economy, according to the World Resources Institute.

Nur Masripatin, climate-change director at Indonesia's Environment and Forestry Ministry, said that "each country must contribute to the global effort." She added that "a change in U.S. policy to the Paris agreement doesn't affect our commitment."

For decades, companies in Indonesia have benefited from clearing tropical forests and exploiting natural resources. Now, many businesses say they see value in more sustainable operations.

"The private sector has the resources, technology and business case to drive climate action," said Lucita Jasmin, director of sustainability and external affairs at pulp and paper company Asia Pacific Resources International Holdings Ltd.

On the sidelines of Paris talks last year, the company said it would invest $100 million over 10 years to expand protection and restoration of carbon-rich peat lands in central Sumatra, an island decked with plantations and which has been affected deforestation. "Our pledge," Ms. Jasmin said, "remains as firm as when it was announced in 2015."

Agus Purnomo, managing director for sustainability and strategic stakeholder engagement at Singapore-listed palm-oil plantation company Golden Agri-Resources Ltd., said the firm was reducing its carbon footprint through methane-capture facilities, five of which are operating. The company also has set aside 75,000 hectares of forest for conservation, according to its website.

While supporting efforts to mitigate climate change, Mr. Purnomo said demand for sustainably produced palm oil is more a driver than the Paris accord.

Other companies in the region say the accord—while not perfect—sets a foundation for action.

"We welcome the ratification of the agreement," said Fiona Wild, sustainability and climate-change vice president at BHP Billiton Ltd., the world's top miner by market value. "The outcome in Paris was clearly more substantial and ambitious than many observers expected."

Rio Tinto PLC, the world's second-biggest miner, said on its website in March that the accord "indicates a higher level of ambition" and it was standing by the deal. "Our position has not changed," a spokesman said last month.

In Japan, the world's biggest importer of liquefied natural gas, Jera Co., is poised to be the country's biggest thermal coal trader. It is standing by efforts to lower emissions and raise fuel efficiency and is also looking to expand its investments in renewable energy.

"We will continue to plan and build the most efficient power plants possible…to fight global warming and lower carbon dioxide emissions and fuel use," Jera Co. President Yuji Kakimi said.

Write to Sara Schonhardt at Sara.Schonhardt@wsj.com, Rhiannon Hoyle at rhiannon.hoyle@wsj.com and Mayumi Negishi at mayumi.negishi@wsj.com

 

(END) Dow Jones Newswires

December 08, 2016 14:55 ET (19:55 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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