The risks of ignoring Indonesia’s methane emissions in coal mining

The report highlights a significant gap in emissions reporting among Indonesia's ten largest coal mining companies, where six fail to include coal mine methane (CMM) in their inventories. Despite national regulations and international standards, CMM emissions are often overlooked in favour of carbon dioxide reductions, potentially doubling the reported emissions of some companies. The document warns that increasing coal production quotas amidst declining global demand creates stranded asset risks and environmental impacts. It recommends that companies adopt comprehensive GHG inventories, re-assess investment risks in light of global methane pricing trends, and implement technical abatement measures such as pre-mine drainage.

• Six out of ten of Indonesia's largest coal mining companies do not include coal mine methane (CMM) in their emissions inventories. For these companies, CMM emissions are estimated to be equal to or greater than their reported emissions from purchased electricity and fossil fuel combustion combined.
• There is significant inconsistency and a lack of transparency in the CMM reporting of the four companies that do disclose it (Indo Tambangraya Megah, Bukit Asam, Golden Energy Mines, and Indika Energy). They use different Global Warming Potential (GWP) values ranging from 21 to 28 and do not provide the emission factors used, making independent verification difficult.
• While Indonesian coal companies have initiated some decarbonisation measures—such as solar photovoltaic projects and electric vehicles—none of the assessed companies have included CMM mitigation in their targets or plans, including those with net zero commitments like Indika Energy (2050) and Adaro Energy (2060).
• The Indonesian government's 2024 coal production quota of 922 million tonnes is 30% higher than the January 2024 target of 710 million tonnes. This expansion contrasts with a long-term decline in global demand and potential reductions in imports from major buyers like China and India.
• The International Energy Agency (IEA) estimates that 26% of Indonesian CMM emissions could be technically abated using existing technologies, such as pre-mine drainage and ventilation air methane (VAM) mitigation.
• Coal companies face increasing financial risks from the lack of methane reporting, as other jurisdictions implement methane pricing, such as the US Inflation Reduction Act (USD 900-1,500 per tonne) and the EU Methane Regulation (recommended fine of EUR 6,000 per tonne).

APA

Ember (2024). The risks of ignoring Indonesia’s methane emissions in coal mining. https://ember-energy.org/latest-insights/the-risks-of-ignoring-methane-emissions-in-coal-mining

Chicago

Ember. The risks of ignoring Indonesia’s methane emissions in coal mining. 2024. https://ember-energy.org/latest-insights/the-risks-of-ignoring-methane-emissions-in-coal-mining.

Wikipedia

{{cite report |author=Ember |title=The risks of ignoring Indonesia’s methane emissions in coal mining |date=29 July 2024 |url=https://ember-energy.org/latest-insights/the-risks-of-ignoring-methane-emissions-in-coal-mining |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ember2024risks, author = {{Ember}}, title = {{The risks of ignoring Indonesia’s methane emissions in coal mining}}, institution = {Ember}, year = {2024}, month = jul, url = {https://ember-energy.org/latest-insights/the-risks-of-ignoring-methane-emissions-in-coal-mining}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }