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LOW CARBON DEVELOPMENT PATH IN INDONESIA

VIEWS: 9 PAGES: 33

									LOW CARBON DEVELOPMENT
   PATH IN INDONESIA:
    CHALLENGES AND
     OPPORTUNITIES
         LIANA BRATASIDA
             ASSISTANT MINISTER
   FOR GLOBAL ENVIRONMENTAL AFFAIRS AND
         INTERNATIONAL COOPERATION
     MINISTRY OF ENVIRONMENT INDONESIA
Indonesia’s view of Low Carbon
      Development Path
• Transformation in the trajectory of economic
  development to sustainable development.
• Resources-efficiency approach and internalizing
  value of natural resources and environment,
  eradicating poverty, creating green jobs, and
  ensuring sustainable economic growth.
• Win-win solution between environmental
  protection and economic growth.
• Should be adjusted based on the condition and
  needs of each country.
       Legal Basis of LCDP in
             Indonesia
1.Law of the Republic of Indonesia No. 6/1994 on
   the Ratification of UN Climate Change
   Convention
2.Presidential Regulation No. 5/2006 on National
   Energy Policy
3. Law of the Republic of Indonesia No. 30/2007 on
   Energy
4. Presidential Instruction No. 2/2008 on Energy
   and Water Efficiency
5. Law of the Republic of Indonesia No. 32/2009 on
   Environmental Protection and Management
   Indonesia‘s Pledge for Emission
             Reduction*
 Statement by President Soesilo Bambang Yudhoyono
“We are devising an energy mix
policy ... that will reduce our
emissions by 26 percent by 2020.
With international support, we are
confident we can reduce emissions
by as much as 41 percent.”

  “We are also looking into the
  distinct possibility of committing a
  billion tons of CO2 reduction by
  2050.We will change the status of
  our forests from that of a net
  emitter sector to a net [carbon]
  sink sector by 2030”

 *Stated at the G20 Summit on Sept 2009 and reiterated at UNFCCC COP 15/CMP 5 on Dec 2009
   Indonesia’s emission reduction target


                                     BAU


                     26 % (Business As Usual)
                                                41 % (Total
                                                 Emission
                                                Reduction)

Gton CO2-eq          15% (with international
                     support)




                                  2020


                                                              5
     Policy Arrangements

• National Communications
• GHG Inventory
• National Action Plan for GHG Emission
  Reduction
• Indonesia Climate Change Trust
  Fund/ICCTF
• Indonesia Climate Change Sectoral
  Roadmap/ICCSR
        Indonesia’s Second National
           Communication (SNC)
•   National circumstances, other information and
    constraint/gaps related financial, technical and
    capacity needs focuses on National Circumstances
•   Greenhouse Gases Inventory  focuses on GHG
    Inventory
•   Vulnerability Assessment and Adaptation focuses on
    developing a programme for Climate Change
    Adaptation
•   Greenhouse Gases Abatement focuses on
    developing a programme on Climate Change
    Mitigation
         GHG Inventory: Summary of 2000 GHG
            emission and removal (in Gg)




1Note:   Emission from peat fire was taken from van der Werf et al (2008). Source: MoE (2009)


The National Greenhouse Gases Inventory (NGHGI) was estimated using Tier 1 and Tier 2 of
the 2006 IPCC Reporting Guidelines. In 2000, total GHG emissions for the three main
greenhouse gases (CO2, CH4 and N2O) without LULUCF (LUCF and peat fires) reached
546.499 Gg CO2e. With the inclusion of LULUCF, total net GHG emissions from Indonesia
increase significantly to about 1,377,754 Gg CO2e.
   GHG Inventory: Share of Sector to total
      national GHG emission in 2000




The main contributing sectors were Land Use Change and Forestry, followed
by energy, peat fire related emissions waste, agricultural and industry
GHG Inventory: Contribution and trend of
 emission from 2000-2005 for all sectors




1Note:Emission from peat fire was taken from van der Werf et al (2008).
Source: MoE (2009) and Bappenas (2009).
  National Action Plan for GHG
 Emission Reduction 2010-2020

    Ministry of Environment along with
 National Development Plan Agency and
   National Council on Climate Change
  coordinated the Action Plan based on
submission from all other sector in national
              and local level.
                                     Mitigation Strategies
• Non-binding emission reduction target of 26% will be equal to 0.767
  Gt.
• Reduce further to 41%, an additional emission reduction of about
  0.422 Gt.
• Key source categories are peat emission, forestry, energy and
  waste
                             3.5

                             3.0                    2.95
      Emission (Gt CO2e) .




                             2.5                             Peat Emission
                                                    1.44     Waste
                             2.0
                                           1.76              Forestry
                                                             Agriculture
                             1.5   1.35
                                            0.83    0.25     Industry
                                   0.39             0.13
                                                     0.06
                             1.0                     0.06    Energy
                                   0.16     0.17
                                   0.43     0.29
                             0.5            0.05
                                            0.05
                                                    1.00
                                    0.05
                                    0.04
                                   0.28     0.37
                             0.0
                                   2000     2005    2020
                                                     2006
Indonesia’s Non-binding Emission Reduction Target 26% and 41%
                                                       Target 41 %     Additional
                     Target 26 %        Cost         (15%additional   Cost (Trillion
         Sector       (Giga ton)   (Trillion IDR)       reduction)        IDR)
                                                        (Giga ton)


Energy                     0.030              0.1             0.010               75
Transportation             0.008               10             0.008               10
                                               0.6
                                       •Gov : 0.1
Industry Processes         0.001    •Private : 0.5            0.004             2.32
Agriculture                0.008              3.6             0.003                    4
                                              46.4
                                        •Gov : 16
Forestry                   0.392   •Private : 30.4            0.310            36,93
Waste                      0.048              6.1             0.030                    5
Peat Emission              0.280             16.5             0.057               35
Total                     0.767             83.3             0.422          168.25
  Indonesia Climate Change
     Trust Fund (ICCTF)
On September 14, 2009, Indonesia launched
Indonesia Climate Change Trust Fund (ICCTF) to
overcome emerging and immediate needs of Climate
Change Sectoral Roadmap program investments
 – Ministerial Decree no. 44//M.PPN/HK/09/2009
 – Will provide illustrative estimates of the
   dimension of economic climate change impacts,
   costs, and possible benefits
 – A number of donors have pledged their support to
   the Trust Fund
                                       ICCTF
•   Principles:
     – transparency in the governance of the fund with independeng monitoring, evaluation and
       financial audits.
       Programs carried out will be monitored and evaluated by the Steering Committee, and
       audited by independent auditor appointed by the government.
       Annual review reports and final program report will be prepared and made public.
     – accountability in management, operation and the use of funds with sound financial
       management including the use of international financial standard.

•   Interim trustee: UNDP, while national trustee is building its capacity to serve as
    the trustee to the ICCTF

•   Two phases:
     – Expenditure fund (initial phase).
        • invest its resources in activities that require investment but do not generate direct
          financial revenues
        • Sources from grants made by bilateral and multilateral development partners.
     – Revolving fund (later stage) to ensure sustainability
        • Invest in revenue-generating activities.
        • Sources from domestic funds, international loans, global capital markets, etc.
Mainstreaming climate change into the national
            development agenda

Climate
Change
                                                     Mid-Term
    Long term
                                                       Plan
       plan                                          2010-2014
    2004-2025
                    Gov. Annual         ICCTF
                      Budget
   Mid term plan                          Energy
    2004-2009      Foreign Loans/        Forestry
                       Grants           Resilience


    Annual plan
       2009
                   Projects
                   Programs


                              ICCTF is linked to national budget,
                              roadmap and Mid term plan
Climate change roadmap: Integrating Climate Change into
National Development Planning


                           CLIMATE CHANGE ROADMAP

                                                                             Objectives 
                                                                            Mainstreaming
              Policy
Current                                                                     climate change
           instrument
Status                                                 Funding   Capacity        into
          and regulation    Program      Project       scheme    building    development
                                                                               planning




                            Priority Sectors
                            1. Agriculture
                            2. Coastal, ocean and fishery
                            3. Energy
                            4. Forestry
                            Secondary Sectors
                            1. Health
                            2. Transportation
                            3. Infrastructure
                            4. water
                            5. Industry
                            Cross Cutting Issues
                            1. Research and Technology
                            2. National security
                            3. Biodiversity
                            4. Poverty
    ICCTF and international financing schemes
FINANCING                MECHANISMS



NATIONAL BUDGET          G-to-G
                         Bilateral      Loan
                         Multilateral   Grant



Bilateral                           ICCTF                  Innovation Fund

                                        GoI host
                         Trustee        TA & financial
Multilateral                            &
                         Management
                                        management
                                        support
                                                         Transformation Fund
Others
UNFCCC, international
trust funds: GEF,        CDM, REDD, PRIVATE, CARBON
Adaptation fund, CIF     MARKET, PUBLIC PRIVATE
                         PARTNERSHIP
Private Sector, carbon
fees
    Indonesia Climate Change
    Sectoral Roadmap (ICCSR)
• Only recently launched in March 31, 2010,
  ICCSR was meant to be the guideline for central
  and local government toward low carbon
  development plan.
• Comprised of strategies from 9 government
  sector: Forestry, Energy, Industry, Transport,
  Waste, Agriculture, Ocean& Fisheries, Water,
  and Health.
• Divided into Mitigation strategy (Forestry and
  Peatland, Energy, Industry, Transport and
  Waste) and Adaptation Strategy (others).
    Other Basis regarding Low
      Carbon Development
• Policy/Regulation on Environment:
1. Presidential Instruction No. 3/2006 regarding
   Environmental Impact Assessment (AMDAL/Analisa
   Mengenai Dampak Lingkungan).
2. Ministry of Environment regulations No. 18/2009
   regarding Permission to Manage Hazardous
   Substances/Wastes.
3. Indonesia’s Action Plan in Dealing with Trans-boundary
   Haze Pollution (in process).
 Other basis regarding Low Carbon
        Development -cont.
• Policy/Regulations on Incentives:
1. Ministry of Energy and Mineral Resources Regulation
   No. 100.K/48/M.PE/1995 on National Master Plan of
   Energy Conservation (RIKEN) 1995 and 2005.
2. Ministry of Finance Regulation no. 101/PMK. 04/2007
   regarding Omission of Import Tax on Tools and Materials
   to be used on Preventing Environmental Pollution.
3. .Ministry of Finance Green Paper: Economic and Fiscal
   Policy Strategies for Climate Change Mitigation in
   Indonesia (2009).
  Challenges and Opportunities
• Indonesia is seeking to reform economic and fiscal policy
   to meet low-carbon economy objective. A range of
   government-led studies is underway in Indonesia that
   looks at options to reduce emissions, such as:
1. provide domestic enabling conditions supported by
   innovative financing mechanisms as well as policy
   reforms (fiscal/pricing policy, standards, education
   capacity building)
2. create public and private partnership and including green
   investment funding mechanisms
3. green investment at the core of the stimulus packages
   include green investment in regular government budget
4. provide global enabling conditions (trade, IPRs, ODA, TT
   and environmental agreements)
Low Carbon Development Activities
          In Indonesia
•   Green Industry ( Low carbon, Cleaner Production, 3R)– Ministry of
    Industry
•   Green Economy – Ministry of Environment
•   Green Building – Ministry of Environment (Ministry Regulation no.
    08/2010)
•   Eco Airport – Ministry of Transportation
•   Sustainable Agriculture Development – Ministry of Agriculture
•   Sustainable Forest Management – Ministry of Forestry
•   Sustainable development-based Spatial Planning – Ministry of
    Public Work
•   Green Banking/Sustainable bank – National bank of
    Indonesia/BNI, Bank Mandiri
•   Green Investment (Socially Responsible Investment/SRI):
    Bapepam and Indonesia Stock Exchange
•   Energy Self-sufficient Village
•   Climate Village
              Eco Airport
• Is an airport which has been measured all
  of the components that can bring impacts
  to the environment
• Intergrating the concept of 3Rs (Reduce,
  Reuse, Recycle) and Cleaner
  Production/Pollution Prevention
• Potential use of CDM in transport sector
                 Eco Airport
    (Terminal 3 Soekarno – Hatta Airport)
• Construction started in
  2006
• Opened on 28 April
  2009
• Designed to be eco-
  modern airport
• Wastewater from the
  passanger terminal is
  processed for
  gardening needs
              Self-sufficient Energy Village
                 (Desa Mandiri Energi)
•       is village with capability to provide more than
        60% of its energy consumption.
•       is prioritizing at remote villages with high-
        priced energy/electricity/fuel
•       its resources are from renewable energy such
        as:
    –     Biofuel (bioethanol, biodiesel, briket nabati)
    –     Solar
    –     Wind power
    –     Microhydro
    –     Biomass fuel
                  Self-sufficient Energy Village in Indonesia
NAD               Kalbar         Kalteng      Kalsel        Kaltim        Sulbar      Sulteng       Gorontal        Sulut     Malut
 6 desa            11 desa        5 desa      • 9 desa       10 desa       36 desa    10 desa       o                17 desa    7 desa
 3 desa            2              2 desa      • 1            2 desa        8 desa      1 desa        8 desa          2 desa
                                                                                                Potensi Lahan Pengembangan Tebu
                                                                                                                                3 desa
                                                                                                     --
                                                                                                      Rendah
 Sumut                                                                                                Sedang                 Sultenggara
  7 desa                                                                                              Tinggi                  5 desa
  1 desa                                                                                              Sangat Tinggi           --

 Riau
  7 desa                                                                                                                       Sulsel
  --                                                                                                                            23 desa
                                                                                                                                4 desa
 Sumbar
  42 desa
  4 desa                                                                                                                       Papua
                                                                                                                                3 desa
                                                                                                                                2 desa
 Jambi
  9 desa
  --
                                                                                                                             Papua Barat
                                                                                                                              6 desa
 Bengkulu                                                                                                                     2 desa
  21 desa
  2 desa
                                                                                                                               Maluku
 Sumsel                                                                                                                         3 desa
  5 desa                                                                                                                        --
  --

 Babel         Lampung       Banten                      Jabar         Jateng&DIY    Jatim       Bali           NTB            NTT
                                           DKI
  4 desa       17 desa        13 desa                     36 desa       37 desa       20 desa     5 desa         20 desa        21 desa
                                            1 desa
  --            5 desa        1                           8 desa        12 desa       3 desa      --             6 desa         5 desa
                                            --

    •     Jumlah DME s.d. Tahun 2008 adalah 424 desa                                                                       Rencana DME
                                                                                       Keterangan:    DME s/d 2008
    •     Jumlah DME Stimulus Tahun 2009 adalah 79 desa                                                                    Stimulus        27
   Other potential Low Carbon
Developments Options in Indonesia
• manufacturing in industry
• power generation (geothermal,
  hydroelectric dam)
• transportation sector (non-motorized
  vehicle, mass rapid transportation
  system, eco airport)
• energy efficiency (retro fit, bio-fuel/ fuel
  switching)
 Example of Priority Programs for Mitigation in
              the Energy Sector
• Acceleration of electricity generation of 10000 MegaWatt
  phase II will be mostly from renewable energy
  (geothermal and hydropower)
• Switching from fossil fuel-based to biofuel (for
  transportation sector).
• Replaching Fuel Oil with CNG (for transporation sector)
• Developing a mass transportation system
• Promoting energy-efficient light bulbs
• Conversion of carosene to LPG
• Developing Self-Sufficient Energy village that take
  advantage of renewable energy (wind power, solar,
  hydro)
• Reducing gas flaring
       Challenges in Low carbon
    development Implementation in
                 Indonesia
•   Lack of fund
•   Lack of capable human resources
•   Lack of environmentally-sound
    technology
•   Lack of coordination among sectors and
    between public and private institutions
•   Lack of incentives/stimulus packages
 Measures for improvement in Low
          Carbon Development
             implementation
1. Public awareness
2. International and regional cooperation in
   capacity building, financing, and transfer
   of technology
3. Clearing house on energy conservation
4. Partnership program on energy
   conservation
5. Standardization and labeling program
                 Conclusion
• There are already many activities regarding Low Carbon
  Development Path in Indonesia
• The activities are sporadic, thus difficult to be measured
• To enhance LCDP, we need strong coordination among
  sectors, between public and private institutions, and
  between central and local government.
• Indonesia needs international support to enhance the
  implementation of LCDP in three areas: development
  and transfer of technology, financial, and capacity
  building
THANK YOU

								
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