A. Background

According to the UN’s Intergovernmental Panel on Climate Change (IPCC) report (2022), the implementation of current pledges by national governments put the world on track for a 2.5°C warmer world by the end of the century. Greenhouse gas emissions, the IPCC further indicates, must decline 45% by 2030 to limit global warming to 1.5°C in line with the long-term climate goals of the Paris Agreement. The climate impacts will only worsen if people are unable to reduce carbon emissions and fail to meet the 1.5°C climate goal can endanger the safe operating space for humanity and the planet, as well as business operations.

Business commitment to net-zero emissions has seen some positive increase both at global level and national level and this needs to be followed with concrete decarbonization strategy and actions. Almost 60% of global GHG comes from the energy sector and 43% of total energy consumption from the commercial and industry sector. Therefore, decarbonization in the energy sector becomes crucial. According to the International Renewable Energy Agency (IRENA), 90% of all decarbonization efforts in 2050 will involve renewable energy through direct supply of low-cost power, efficiency, electrification, bioenergy with carbon capture and storage (CCS) and green hydrogen. The problem is that despite some current progress, the energy transition has been far from being on track to achieve the 1.5°C climate goal by 2050. In Indonesia, the renewable energy mix at the end of 2022 just only reached 14,11% from the national target of 23% by 2025. More ambitious actions are needed to change the current trajectory.

Based on current trends and conditions, we have examined that there are still significant barriers for companies to transform into energy transition through renewable energy and energy efficiency: enabling regulations, access to financing, adequate skills and infrastructure, access to innovation and technology. These barriers need to be addressed to enable companies in accelerating their transition into renewable energy and energy efficiency.

Indonesia Business Council for Sustainable Development (IBCSD) as CEO-led business association that has commitment to support sustainable development and support the acceleration of business decarbonization through energy transition. For this purpose, IBCSD plan to develop a guideline for increasing business capacity in decarbonisation actions through integrated energy solutions strategy which will be derived from WBCSD (World Business Council for Sustainable Development)’s Guidelines for An Integrated Energy Strategy and streamlined with Indonesia’s context: regulation and policy, government initiatives, business trend, etc.

In developing the guideline, IBCSD will partner with a consultant that possesses expertise and experience in decarbonization through integrated energy strategy: energy efficiency and decarbonizing energy sourcing. Aside from relevant expertise and experience we expect to have a partner that has similar spirit and passion in pushing business decarbonization in Indonesia.

B. Purpose and Objectives

The purpose of activity set out in the term of reference is to develop a guideline for increasing business capacity in decarbonisation actions through integrated energy solutions strategy, with objectives as follow:

Utilizing WBCSD’s Guidelines for An Integrated Energy Strategy to be adapted with Indonesia’s context;
Streamlining approach and target related to business decarbonisation through integrated energy;
Gaining input and views from relevant government institution regarding the target and direction of business decarbonisation through integrated energy;
Gaining input and views from businesses regarding their interest and trend in decarbonisation through integrated energy.

C. Scope of Works

The guidelines that shall be delivered according to this term of reference, will consist of two modules as follow:

Module 1: Energy Efficiency
Module 2: Decarbonizing Energy Sourcing

The following are the scope of works expected to be delivered by the consultant in relation to the development of the above guidelines modules. The consultant shall be able to propose any methodology deemed appropriate to deliver the best outcome from the outlined activities.

Preliminary Drafting

The consultant will be responsible to develop a first draft of guideline based on desk review conducted towards various materials, which at least include:

WBCSD’s Guidelines for An Integrated Energy Strategy
Regulation and policy in Indonesia related to business decarbonization through integrated energy strategy;
References from global policy regarding business decarbonization through integrated energy strategy (at least 5 countries, and among them at least 2 countries shall have similar context with Indonesia);
Available paper, books, and references in Indonesia, issued by other institutions regarding business decarbonization through integrated energy strategy.
Stakeholder Input

Following the finalization of preliminary draft, consultant shall be responsible to conduct interview or discussion with governmental stakeholder and government-related institution relevant to business decarbonization through integrated energy strategy, which may include:

Ministry of Energy and Mineral Resources (MEMR);
Ministry of Environment and Forestry (MoEF);
Ministry of National Planning (MoNP);
PT PLN (Persero).
Related companies.

The consultant may propose other related stakeholders to maximize the support in developing the guidelines.

Validation Workshop

Validation workshops will be done by engaging at least 20 (twenty) companies for each module. The company’s selection will be shortlisted from IBCSD members and Kadin NZH members, or other companies proposed by the stakeholder during the dialogue process in (2).

D. Tasks, Deliverables, and Expected Schedule

The tasks, outcome and products, as well as expected Schedule to be delivered by the consultant are as follow:

No	Tasks	Deliverables/Products	Expected Schedule
1.	Desk Review	List of reviewed documents & summarized relevant content	7 days
2.	First Draft Guideline	Preliminary draft of guidelines modules	20 days
3.	Stakeholders’ interview and dialogue/ discussions	Minutes of Meeting	8 days
4.	Validation Workshop Module 1	Activity Report	1 day
5.	Validation Workshop Module 2	Activity Report	1 day
6.	Finalization of Guidelines Modules	Issuance of Guidelines	5 days

It is expected that the consultant is able to deliver their best results in 3 (three) months since the signing of contract/MoU. Consultant is expected to submit their own timeline of program plan in accordance with the outlined activities under this term of reference.

E. Division of Responsibility

Following is the division of responsibility or battery limit for the activities to be executed under this term of reference.

No	Tasks	IBCSD	Consultant
1.	Desk Review	Providing access to relevant references especially available in WBCD including establishing contact	Conducting overall activities until report preparation
2.	First Draft Guideline	–	Conducting overall activities until report preparation
3.	Stakeholders’ interview, dialogue/ discussions	Managing event: providing logistics and media, including venue (if necessary)	Preparing materials, reports, & analysis
4.	Validation Workshop Module 1	Managing event: providing logistics and media, including venue	Preparing materials, reports, & analysis
5.	Validation Workshop Module 2	Managing event: providing logistics and media, including venue	Preparing materials, reports, & analysis
6.	Finalization of Guidelines Modules	Final review	Conducting overall activities until report preparation

G.Proposal Submission

Following are the document to be submitted by consultant as proposal submission:

Administrative

Consultant is expected to submit their corporate legal document, at least the Decree of Establishment (SK Menkumham atas Pengesahan Akta), corporate profile and curriculum vitae of related consultants,, including extensive list of relevant working experiences.

Technical

Consultant is expected to submit a technical proposal, which outlined their take on this term of reference as well as their proposed approach and methodology to answer the requirement of this term of reference and to fulfill the expected deliverables at optimal quality.