Every year, more companies announce net zero emission commitments, yet global emissions are still rising. For sustainability and ESG teams, the pressure is real: regulators are tightening standards, investors are demanding verified progress, and “we’re working on it” is no longer a credible answer.
The problem isn’t a lack of ambition. Most companies genuinely want to reduce their carbon footprint, but they run into the same wall: internal abatement only goes so far. Hard-to-abate sectors like manufacturing, logistics, and agribusiness still produce residual emissions that no operational efficiency gain can eliminate on its own.
This is where a structured net zero emission strategy becomes critical, combining deep operational cuts with credible, science-aligned carbon removal. The companies making real progress aren’t just buying offsets to fill the gap; they’re building a portfolio of interventions that holds up to scrutiny.
What is Net Zero Emission?
Before building a roadmap, it helps to be precise about what the term actually means, because net zero is frequently misused in corporate communications and this misuse creates real risk.
Net zero emission refers to a state in which the total greenhouse gases a company or country releases into the atmosphere is balanced by an equivalent amount being removed or avoided. It is not the same as zero emissions, and the distinction matters. Zero emissions would mean no greenhouse gases are produced at all, while net zero acknowledges that some residual emissions may still occur as long as they are fully counterbalanced by verified removal or sequestration.
The “net” in net zero is where most corporate strategies either hold up or fall apart. Carbon neutral vs net zero is a distinction regulators and standard-setters are increasingly formalizing: carbon neutrality typically refers to offsetting emissions on an annual basis, while net zero requires a deeper, longer-term transformation of business operations aligned with science-based targets. The Science Based Targets initiative (SBTi) defines corporate net zero as reducing emissions by at least 90% across all scopes by no later than 2050, with any remaining residual emissions addressed through permanent carbon removal.
Why Do Companies Need Net Zero Targets?
The business case for net zero is no longer driven by values alone. Regulatory, financial, and reputational forces are now making net zero strategy a boardroom-level necessity rather than a discretionary sustainability initiative.
Access to capital is increasingly tied to climate performance. Major institutional investors, including those aligned with the Net Zero Asset Managers initiative, now require portfolio companies to demonstrate a credible decarbonization trajectory. Without science-based targets net zero alignment, companies risk being screened out of sustainable investment portfolios or facing higher costs of capital.
Supply chain requirements are creating a parallel pressure from the private sector. Multinational buyers in sectors like consumer goods, electronics, and financial services are building Scope 3 emission reduction requirements into supplier contracts, which means companies without a credible net zero roadmap risk losing access to global markets. ESG compliance carbon standards are no longer a differentiation factor; in many supply chains, they are a baseline qualification.
Brand and legal exposure are also shifting. Greenwashing enforcement is intensifying across the EU, UK, and increasingly in Southeast Asia, where regulators are moving to require that sustainability claims be substantiated by verified data. Companies making unsubstantiated net zero claims face regulatory penalties, litigation risk, and reputational damage that is difficult to reverse.
Regulations and Market Pressures Driving Net Zero Commitments in Indonesia
Indonesia’s regulatory and market environment for net zero is evolving faster than many domestic companies anticipated. Several converging forces are now creating binding obligations, not just voluntary incentives, for Indonesian businesses to engage seriously with corporate decarbonization.
1. National Carbon Regulations: Presidential Regulation 110/2025 and Domestic Carbon Trading
Presidential Regulation No. 110 of 2025 on the Implementation of Carbon Economic Value Instruments and National Greenhouse Gas Emission Control now establishes the legal foundation for Indonesia’s carbon market and carbon pricing framework, replacing the earlier Presidential Regulation No. 98 of 2021.
The updated regulation governs the implementation of carbon economic value instruments more comprehensively, covering carbon allocation, the formulation and setting of the NDC, implementation procedures for carbon economic value instruments, transparency frameworks, monitoring and evaluation, capacity building and financing, and the establishment of a steering committee while also expanding its focus to the forestry sector through social forestry and critical land rehabilitation.
2. ESG Pressure from Global Supply Chains
Indonesian exporters face growing ESG compliance carbon requirements from international buyers, particularly in the EU following the introduction of the Corporate Sustainability Reporting Directive (CSRD) and the Carbon Border Adjustment Mechanism (CBAM). These regulations require that products entering EU markets carry verified emissions data and, in some cases, meet specific carbon intensity thresholds.
For palm oil, rubber, timber, and other commodity sectors, the EU Deforestation Regulation (EUDR) adds a further layer of traceability and sustainability requirements. Indonesian companies that supply into European or North American chains without credible MRV carbon credit documentation are beginning to experience tangible commercial consequences, from delayed contracts to outright delisting by buyers.
3. Private Sector Commitments in Indonesia’s NDC
Indonesia’s updated Nationally Determined Contribution (NDC) targets a 31.89% unconditional emissions reduction and up to 43.20% with international support by 2030. These national targets create top-down pressure on large domestic enterprises, particularly in energy, forestry, and land use sectors, to align their own operational targets accordingly.
Several major Indonesian conglomerates and state-owned enterprises have already announced net zero or carbon neutrality commitments, which in turn creates pressure across their supply chains. As these anchor buyers begin requiring emissions disclosures from their suppliers, the voluntary carbon market in Indonesia is expected to scale significantly as a mechanism for smaller companies to participate in credible offset frameworks.
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A Realistic and Measurable Corporate Net Zero Emission Strategy
Translating a net zero emission commitment into an operational strategy requires a sequenced approach. Jumping directly to offset procurement without first establishing a solid emissions baseline and reduction roadmap is one of the most common and costly mistakes companies make.
1. Step 1: Measure and Disclose Your Full Emissions Footprint
The foundation of any credible net zero strategy is a comprehensive greenhouse gas inventory covering Scope 1 (direct emissions), Scope 2 (purchased energy), and Scope 3 (value chain emissions). For most companies, Scope 3 represents the largest share of total emissions and the most complex to quantify, but it is also where science-based targets net zero alignment requires the most ambition. Using an internationally recognized accounting standard such as the GHG Protocol Corporate Standard ensures that your inventory is audit-ready and comparable across peers.
2. Step 2: Set Science-Based Reduction Targets
Once your baseline is established, target-setting should be grounded in climate science rather than arbitrary percentage reductions. The SBTi’s Net-Zero Standard requires companies to set near-term targets (typically 5 to 10 year horizons) and long-term net zero targets, both of which must be consistent with limiting global warming to 1.5 degrees Celsius. Targets that are not aligned to this standard are increasingly scrutinized by investors, regulators, and civil society, so the choice of methodology has direct reputational implications.
3. Step 3: Execute Deep Operational Decarbonization
Carbon removal and offsetting should come after, not instead of, genuine operational emission reductions. Priorities typically include energy efficiency investments, transitioning to renewable energy, improving logistics and fleet efficiency, and redesigning supply chain procurement to favor lower-carbon inputs. For hard-to-abate sectors, this phase may also involve process innovation, fuel switching, or capital-intensive technology adoption, all of which take time to yield results and need to be sequenced carefully in the roadmap.
4. Step 4: Address Residual Emissions with High-Integrity Carbon Removal
Even after aggressive operational reductions, most companies will carry some level of residual emissions that cannot be eliminated through efficiency measures alone. This is where high-quality carbon removal becomes a legitimate and necessary tool. The emphasis should be on permanent, verified removal rather than avoidance-based offsets, with strong MRV carbon credit protocols in place to ensure that every tonne claimed can withstand third-party scrutiny. Biochar carbon removal, as one example, offers a durability profile and co-benefit stack that is increasingly preferred by corporate buyers seeking offsets that align with the integrity standards set by bodies like the Integrity Council for the Voluntary Carbon Market (ICVCM).
The Role of Biochar and Carbon Removal in Net Zero Strategy
Biochar is gaining serious traction in corporate decarbonization portfolios, not as a niche solution but as a scalable carbon removal pathway with verifiable permanence and measurable co-benefits. Understanding how it fits into a broader net zero strategy helps companies make more informed decisions about where to allocate their carbon procurement budgets.
Biochar is produced by converting organic waste materials, such as agricultural residues, into a stable carbon-rich material through a process called pyrolysis, which involves heating biomass in low-oxygen conditions. When biochar is applied to soil, the carbon that was originally captured by the biomass as it grew is locked into a stable form that resists decomposition for hundreds to thousands of years. This durability is a key differentiator compared to nature-based solutions like reforestation, where carbon can be re-released through fire, disease, or land use change. For companies calculating biochar carbon offset contributions to their net zero targets, the permanence factor is critical to the quality and defensibility of the claimed reduction.
From an MRV perspective, biochar carbon credits are increasingly supported by robust quantification methodologies. The Puro.earth standard and Verra’s VM0044 methodology both provide structured frameworks for measuring, reporting, and verifying biochar carbon removal, which gives corporate buyers a credible audit trail. In the voluntary carbon market, biochar credits have commanded premium pricing relative to many nature-based offsets precisely because of their permanence and the rigor of their verification frameworks. For companies operating in Indonesia’s agricultural and agribusiness sectors, biochar also creates an opportunity to turn biomass waste streams into a productive input for soil health improvement, generating co-benefits that strengthen the sustainability narrative beyond carbon accounting alone.
Net zero emission strategy is not served by carbon removal alone, but biochar addresses a specific gap that most corporate decarbonization roadmaps leave unresolved: what to do with the final 10 to 20 percent of emissions that are genuinely hard to abate. Integrating biochar carbon offset procurement into a portfolio alongside operational reductions and other carbon removal approaches allows companies to close that gap with verifiable, durable evidence.
Steps to Begin Your Company’s Net Zero Journey
Getting started on net zero does not require a complete strategy to be in place before any action is taken. In practice, the most effective corporate net zero programs are built iteratively, starting with what is measurable and expanding scope as data and organizational capacity mature.
The first practical step is establishing accountability. Net zero commitments that live only in sustainability reports tend not to translate into operational change; commitments that are tied to executive KPIs, board oversight, and disclosed publicly tend to move faster. Assigning a cross-functional team with representation from finance, procurement, operations, and sustainability ensures that carbon reduction targets are integrated into business decisions rather than managed as a parallel reporting exercise.
From there, engaging with frameworks and standards early reduces the risk of having to restructure your approach later. Whether a company pursues SBTi validation, aligns with the GHG Protocol, or participates in Indonesia’s domestic carbon market, the choice of framework determines what data you need, how you need to collect it, and what interventions will count toward your targets. Carbon credit for companies acquired outside a recognized standard carries increasing reputational risk, so the quality of the procurement framework matters as much as the volume of credits purchased.
Start Building Your Net Zero Emission Roadmap with Planet Carbon
Building a credible net zero emission strategy is a multi-year process, and the quality of the decisions made early, particularly around emissions accounting, target-setting, and carbon removal selection, shapes the integrity of everything that follows. For companies operating in Indonesia and across the region, the window to establish a well-structured roadmap before regulatory requirements tighten further is narrowing.
Planet Carbon is designed specifically to support this process. As an Integrated Carbon Solutions Platform, Planet Carbon works across the full carbon value chain: from developing and validating biochar carbon removal projects to connecting corporate buyers with high-integrity offsets that meet international MRV standards. Whether your organization is at the earliest stage of understanding its emissions baseline or is already evaluating biochar carbon offset procurement to address residual emissions, the team at Planet Carbon brings the technical and market expertise to help you move forward with confidence.
If you’re working through the complexities of corporate decarbonization and want to understand where biochar and carbon removal fit into your specific roadmap, reaching out to the Planet Carbon team is a practical next step. The conversation doesn’t need to start with a purchase decision; it starts with understanding what a credible net zero pathway looks like for your sector, your supply chain, and your timeline.
Referensi:
- Science Based Targets initiative (SBTi): Corporate Net-Zero Standard, defining 90% emission reduction requirement and residual emissions guidance – https://sciencebasedtargets.org/net-zero
- Integrity Council for the Voluntary Carbon Market (ICVCM): Core Carbon Principles for high-integrity carbon credits – https://icvcm.org
- Government of Indonesia: Presidential Regulation No. 98 of 2021 on Carbon Economic Value Implementation – https://jdih.setkab.go.id
- Government of Indonesia: Ministry of Environment and Forestry Regulation SK 386/2023 on mandatory carbon trading for coal-fired power plants
- Puro.earth: Biochar Carbon Removal methodology and permanence standards – https://puro.earth
- Verra: VM0044 Methodology for Biochar Carbon Sequestration – https://verra.org
- Net Zero Asset Managers initiative: investor commitment framework for portfolio decarbonization – https://www.netzeroassetmanagers.org
- UNFCCC / Government of Indonesia: Indonesia’s Updated Nationally Determined Contribution (NDC) 2022 – https://unfccc.int/sites/default/files/NDC/2022-09/23.09.2022_Enhanced%20NDC%20Indonesia.pdf
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