Climate Resilience
Climate Resilience
The ongoing Russo-Ukrainian war and the changing climate have caused energy costs, especially the price of fossil fuels, to rise. The changing climate has also led to severe weather conditions, including intense storms, floods, and droughts in many parts of the world. The increasing awareness of the impact of global warming has led to a growing interest in environmentally friendly products among consumers. Meanwhile, businesses are beginning to pay more attention to competition in low-carbon markets, and governments are starting to implement stricter laws regarding climate change, such as carbon tax policies, which will directly affect businesses and industries
Risks
Opportunity
Strategy
By using the best available technologies
By increasing the share of biomass and renewable energy
By innovating the low - carbon products based on the principles of circular economy across value chain
By networking with national and international to scale up carbon capture, utilization and storage (CCUS) technologies
By collaborating with communities and authorities for reforestation and rehabilitation as carbon sink
By Internal Carbon Pricing : ICP to enhance greenhouse gas emissions reduction within the organization.
GHG Roadmap
- Announced Sustainability Goals.
- Achieved the goal of GHG Emission Reduction 12.8% from the reduction target of 10% compared with Business as usual (BAU) at the base year of 2007
- Announced Targets
- Net Zero by 2050
- Reduce greenhouse gas emission 20% by 2030 compared with the base year of 2020 both Thailand and abroad at the base year of 2007
- Set Internal Carbon Pricing: ICP
- Task Force on Climate - RelatedFinancial Disclosure(TCFD)
- Increase to use of renewable energy to 24.3%
- Report on greenhouse gas emissions scope 3.
- Joined the Thailand Carbon Neutral Network (TCNN) as a Climate Action Leading Organization
- Achieve the goal of :
- Energy consumption reduction 13% by 2025 compared with base year 2007
- Greenhouse gas emission reduction 20% compared with base year of 2020 both Thailand and abroad
- Using biomass fuel and natural gas-boiler technology to generate electricity
- Improving :
- Biomass quality by adopting Torrefaction Technology
- Improve energy efficiency by expanding the installation of Turbo blowers at a Paper machine
- Increase the proportion of renewable energy use by more than 80%
- Achieve Net Zero
- Carbon offset by
- Natural Climate Solution: NCS
- Carbon Capture, Utilization and Storage: CCUS
Remark: SCGP will be expanded to the installation of Turbo blowers at a Paper machine completely in 2030, it can save electricity consumption 58.9 GWh/year or can reduce GHG emissions 48,000 tCO2e/year (approx.)
Target
2022 Performance
GHG Performance
Total GHG emissions
GHG emissions Scope 2
GHG emissions Scope 3
Energy Consumption Performance
Energy Consumption
Alternative Fuel
Renewable Energy
Note:
- In 2020, began to include GHG emissons performance in the operations of overseas factories.
- In 2021, began to include energy consumption performance in the operation of overseas factories.
- Proportion of Renewable Energy in total energy consumption
- Proportion of Alternative Flue in total energy consumption
Highlight Activities
Improve Energy Efficiency
- Implemented measures to increase water discharge efficiency from boilers in its paper production processes at 5 plants both domestically and abroad with automated systems, saving 78,732 GJ/yr and reducing the emission of 7,978 tCO2e/yr
- PT Fajar Surya Wisesa Tbk has optimized the water extraction system from the paper. by installing machines with new technology instead of the old system This reduces the use of electricity and anti-scale chemicals. It saves energy by 172,214 GJ/yr and reduces greenhouse gas emissions by 13,239 tCO2e/yr
Altogether, these two projects save energy use totaling 250,946 GJ/year and reduce GHG emissions by 21,217 tCO2e/yr
Expand the Solar Roof project
The company expanded the installation of solar energy to seven other companies in Thailand, adding a total of 10.5 megawatts to the current capacity, bringing the total capacity of solar energy production to 22.3 MWp to date. This has helped to reduce greenhouse gas emissions by 10,238 tCO2e/yr
Increase Biomass usage
SCGP has worked to build partnerships with communities to purchase agricultural waste materials, such as sugarcane leaves conversion into biomass fuel. In the year 2022, SCGP has been studying and testing the use of wood pallets as a fuel source. They have found that wood pallets have a higher calorific value than wood bark and have properties similar to coal, allowing them to be used as a substitute.
We were able to increase the use of biomass to 8.4% (496,878 tons per year), reducing the emission of greenhouse gases by 404,478 tCO2e/yr
Expand Biogas project
PT Fajar Surya Wisesa Tbk in Indonesia upgraded its wastewater treatment system from using electrical energy to an anaerobic system, reducing its use of electricity. They have used biogas to generate electricity which has reduced the use of coal by 22,000 tons per year, reduced the emission of greenhouse gasses by 36,000 tCO2e/yr, and saved 58 million Baht per year in coal costs.
Promote and support carbon removal with Natural Climate Solution.
SCGP organized a tree-planting activity with various organizations and communities, planting a total of 999,263 trees. As a result, the total number of trees planted since 2020 has now reached 1,128,675 trees. This is equivalent to the carbon dioxide sequestered, which is estimated to be around 10,722 tons of carbon dioxide equivalent.
Internal Carbon Pricing
SCGP sets an internal carbon price for the years 2022-2024 with a maximum value of 25 US dollars per ton of carbon dioxide equivalent, an increase from the previous year's rate of 18 US dollars, in order to accelerate support for various projects.
Currently, 5 projects have been supported by ICP, with a total investment of THB 159 million. It is expected that these projects will help reduce greenhouse gas emissions by a total of 7,550 tons of carbon dioxide equivalent per year.
SCGP has estimated the Social cost of carbon (SCC), in million Baht, of the damage done by each additional ton of carbon emissions by using methodology from The Interagency Working Group (IWG) to calculate SCC. It also is an estimate of the benefit of any action taken to reduce a ton of carbon.
Partner | Cooperation Activity | Cooperation Activity | Cooperation Activity | Cooperation Activity | Cooperation Activity |
---|---|---|---|---|---|
GHG emission reduction (Scope 1+2) compared the base year 2020 | 0.63 million tons CO2e | Estimated cost of damage done by emitting one additional metric ton of CO2e | 1,169 million THB | Social cost caused/avoided | Positive |
Note:
- The value is calculated by using the Social Cost of CO2e which $51 per metric ton of CO2e in 2020 with 3% discount rate, so we estimate a social cost of around $53 per metric ton of CO2e in 2022 and the average exchange rates in 2022 which is 35 THB per USD.
- Social Cost of Carbon, Methane, and Nitrous Oxide Interim Estimates under Executive Order 13990, February 2021, Table ES-1: Social Cost of CO2e, 2020 – 2050 (in 2020 dollars per metric ton of CO2e)
Refer Social Cost of CO2e: Click link