• Based on Kyoto Protocol (1997), developed countries commit to decrease Greenhouse Emission at least 5% from the condition of 1990 which will be executes from 2008 to 2012 because the increase of Greenhouse Gas emission can cause global climate changes.
• CDM is one of the mechanisms to decrease Greenhouse Emission involving developed and developing countries in the world and Inalum as one of the industries in developing countries (Indonesia) takes part to implement CDM.

The Initiative of Aluminium Smelter Industry to Decrease Greenhouse Gas Emission.

An initiative has widely spread all over aluminium smelters in the world to decrease Greenhouse Gas Emission, especially PFC (Perflourocarbon). Based on “IAI Sustainability Report” 2006, PFC emission from global aluminium smelters has been decreased 76% per ton aluminum which is produced from 1990 to 2005.

Decreasing Potential for PFC Emission at Inalum

• Now, PT Inalum produces around 250,000 tons aluminium per year.
• Potential activity to decrease PFC emission in by decreasing Anode Effect (AE). To execute the activity, Inalum has already improved operational control system which can decrease the frequency, duration and over voltage of Anode Effect (AE).
• Anode Effect is condition produced by polarization of the anode in the electrolysis of fused salts and characterized by a sudden increase in voltage and a corresponding decrease in amperage and alumina level fused in the reduction cells is abnormal (≤ 1%)
• Inalum has made an agreement with an independent consultant, South Pole Ltd. Switzerland, collaborated with CER Indonesia to assist the implementation of CDM project and the effort is fully supported by BAPEDALDASU (North Sumatra Environmental Impact Management Agency) and Mitra Hijau.
• Through CDM, some of the decreasing of Greenhouse Emission potential can be claimed as CER (Certified Emission Reduction).

Aspect of Sustainable Development

CDM project of Inalum has fulfilled all criteria and indicator of sustainable development as follows:

a. Aspect of Environmental Sustainability

• Improvement of operational control system (computerization) to avoid direct contact to nature. Therefore, this project will not make any disturbance to its surrounding.
• By decreasing PFC emission through decreasing AE, it will positively impact towards fresh air in the surrounding and work location
• Inalum has implemented Occupational Health and Safety Management System which is regulated by the government and Inalum receives Gold Flag Predicate twice.

b. Aspect of Economy Sustainability

• There is no any decrease in income and public service for surrounding community if the project is executed.
• There is no any indication to do dismissal due to the project

c. Aspect of Social Sustainability

• An activity of public counseling has been carried out on January 15, 2008 at BAPEDALDASU Office which is attended by 29 people from community surrounding the smelter, Department of Industry and Trade, Department of Manpower of North Sumatra, BAPEDALDASU, Representatives from North Sumatra University, and representatives from Non-Governmental Organization (NGO). In this ceremony, the developer explains about the plan and there is mo any negative comment from the stakeholders towards the project.
• Principally, the stakeholders attended support the effort to reduce PFC emission carried out by Inalum and hope the project could support the way to preserve environment within North Sumatra and would attract many other parties to participate in the climate change mitigation activities such as CDM.

d. Aspect of Technology Sustainability

• The technology used is the latest technology which has been applied in some smelters in the world.
• The maker of the system is outsider, but installation is done together with Inalum employees (on the job training). Besides that, maintenance and operational aspect including its development is carried out by special training both in the maker’s office and Project location. The source code and its algorithm from the system have been given to Inalum to be further developed.