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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