• Vol 9, No 4 (2018)
  • Industrial Engineering

Development of a Framework for the Calculation of CO2 Emissions in Transport and Logistics in Southeast Asia

Andri Mubarak, Fachruddin Zainal


Cite this article as:
Mubarak, A., Zainal, F., 2018. Development of a Framework for the Calculation of CO2 Emissions in Transport and Logistics in Southeast Asia. International Journal of Technology. Volume 9(4), pp. 787-796
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Andri Mubarak Industrial Engineering Department, Universitas Indonesia
Fachruddin Zainal Global Production Engineering, Technische Universität Berlin
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Abstract
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Southeast Asia, as the world fastest growing market, has become the destination for multinational companies to operate their businesses. The increasing number of companies in the region will result in raised levels of CO2 emissions because of their transport and logistics activity. This paper aims to develop a CO2 emissions framework by considering the actual conditions of the region, and by calculating the level of emissions with a case study of Indonesia. Several steps were involved in the design of the framework. First, research was conducted on available frameworks which estimate CO2 emissions in logistics. Second, the model for CO2 emissions calculation was built by breaking down all the factors influencing calculations. Third, the model was applied using distribution network data of companies in Indonesia. The output of the research is a framework which helps companies to calculate CO2 emissions, and which gauges the level of such emissions generated by companies operating in Indonesia. In addition, the impact of the different distribution network scenarios on the amount of CO2 emissions produced is assessed.

CO2 emissions calculation model; Greenhouse gas emissions; Logistics in Southeast Asia; Sustainable logistics; Transport and logistics

Introduction

In 2009, The World Economic Forum calculated that the transport and logistics sector was responsible for 5.5% of total emissions from human activity, at around 2,800 mega-tonnes annually (World Economic Forum, 2009). In addition, Hao et al. (2015) found that the freight transport sector was responsible for 788 mega-tonnes of emissions, which represented around 8% of national Greenhouse Gas (GHG) emissions in China in 2013. The release of GHG emissions into the atmosphere increases heat, which ultimately leads to global warming (UNEP, 2003). Additionally, Abbasi and Nilsson (2016) discuss several negative impacts of logistics activities, such as visual pollution, congestion, intimidation, vibration, injuries and accidents.

As a fast-growing market with low-cost operations, many businesses have decided to move their production plants to Southeast Asia (SEA). Rao (2002) states that the region is an exciting location for most global manufacturing companies. The main driver of this movement is the cheaper production process. By increasing the number of companies that operate in SEA, this factor also increases the level of CO2 emissions from transport and logistics activities. As Southeast Asia has become a  good option  for production plants,  environmental issues  need to be addressed to avoid severe problems in the future (Hart, 1997).

The effort to calculate CO2 emissions from companies in transport and logistics,  known as a green logistics activity (Sbihi & Eglese, 2007), is a useful consideration for companies before developing the right policy for CO2 emissions reduction.  Currently, frameworks, calculation tools, methodologies and reporting formats which can be used to calculate CO2 emissions can be easily accessed. The problem with these tools is the absence of a global method specific to logistics operations (Greene & Lewis, 2016).

Measuring CO2 emissions more accurately, with consideration of the actual conditions in Southeast Asia, has been one of the challenges faced by companies in the region. A holistic approach is needed in terms of CO2 emissions reduction in the logistics sector, supported by different measurements (Nilsson et al., 2013). There are several standards for CO2 emissions calculation, but none is specifically aimed at companies in Southeast Asia. Moreover, little research has been conducted on CO2 emissions calculation in transport and logistics specifically for companies in Southeast Asia, one of the few examples being recent research developed in SEA by Binh & Tuan (2016). In the other area, Padfield et al. (2011) conducted research to measure CO2 emissions for consumption and production of food in Southeast Asia specifically for the Malaysian food sector. The development of a calculation model for CO2 emissions in Southeast Asia will help local companies to achieve more accurate measurement of their impact and will represent the actual conditions found in the region. Companies can use the results of the CO2 emissions calculation when developing initiatives as part of sustainability efforts in their business operations.

Conclusion

In comparison to the current models of CO2 emissions calculation, the model developed in this study represents the actual conditions of the transport and logistics activity of companies in Southeast Asia by implementing a standard input adjusted to the conditions of the region. Therefore, the level of CO2 emissions generated by the model is better than in the other models. Another advantage of this model is that it can be used without high investment.

The results of the calculations indicate an increase in CO2 emissions in 2018, even though the scenario uses the same distribution network. Increasing demand will increase the number of transportation modes used, leading to higher energy consumption. Another interesting finding is the contribution of trucks to CO2 emissions. Road transportation produced more than 50% of CO2 emissions in 2018. Moreover, Indonesia consists of 13,466 islands, which shows that sea transportation plays an important role in connecting these (Central Intelligence Agency, 2017). However, the results show that sea transportation is not used optimally. Changing the use of trucks to sea transportation could be one alternative to reduce CO2 emissions.

With regard to future research, this study was developed without considering the financial aspect, especially how initiatives in CO2 emissions reduction could have a positive impact on this. Therefore, the model would be more effective if it identified the relationship between the financial aspect, distribution networks and the level of CO2 emissions generated.

Supplementary Material
FilenameDescription
R1-IE-1432-20180504104138.pdf ---
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