At present, the palm oil sector is one of the greenhouse gas (GHG) emitters
in Indonesia. Numerous reduction strategies have been developed for operational and
technical measures, but the industry is relatively unaware of how much potential for
mitigation exists and how much it would cost to realize this potential. Policymakers use
marginal abatement cost curves (MACC) to analyze and rank existing abatement measures
based on costs and mitigation potential to design cost-effective decarbonization policies.
The objective of this study is to propose a MACC methodology framework for calculating
the potential for emission reductions and cost savings relative to a reference technology.
The results of this study show the structure of MACC methods combination reference, in
which eight elements serve as references to create a methodological framework. Then, the
methodology framework, consisting of identify, generate, and validate phase, is created
to assess and evaluate the four main parameters which are cost savings, abatements,
complexity, and benefits for each technology to support decision-makers making a more
suitable decision about which actions to take to accomplish maximum emission reduction
target. Further experimentation is recommended to test the proposed framework to rank the
mitigation technology in the palm oil sector.