SATYA WIDYA YUDHA

CIRCULAR ECONOMY AND INDONESIA’S NDC:CHALLENGES AND OPPORTUNITIES FOR A SUSTAINABLE FUTURE

Circular Economy ForumJakarta Convention Center

12 July 2017

Vice Chairman of Commission VII & Chairman of the Green Economy CaucusThe House of Representatives of the Republic of Indonesia

CIRCULAR ECONOMYTheoretical basis: David W. Pearce & R. Kerry Turner, 1990

Primary thesisThe current economic system does not provide any real incentive for recycling; almost all products; almost all products are manufactured to be ultimately disposed of.

The future: circular economyReuse, refurbish, remanufacture, recycle

Status quo: linear economyTake, make, dispose -> WASTEFUL

NO WASTEIn2015theEUimplementedanewCircularEconomyPackage,designedto

encouragethesystembyfundingimplementaAoneffortsaswellasseCngupregulaAonsonwastethatincenAvizerecyclingprograms.

CIRCULAR ECONOMYResponding to global sustainability problems

Global Household Expenditure1970: USD7 trillion

2012: USD25 trillionGlobal GDP (Business As Usual)

2010: -1.6%

2030: -3.2%

Waste2025: ± 2.2 trillion kilograms of waste

produced in urban settings alone

Commodity PricesIncreased 3x in the last 10 years

Climate Change & Environmental Effects

Consistently worsening conditions from year to year as a result of rising industrial

and household emissions

Global Resource Needs2014: 50 billion tons

2050: 130 billion ton

Annual Raw Material ExtractionIncreased 3x in the last 40 years

CIRCULAR ECONOMYFundamental and comprehensive change in economic activities

BUSINESSASUSUAL

Exampleofcirculareconomy:TheMudJeansbrandintheNetherlands:jeansarerentedun2loutworn,thenreturnedandrecycledandmadeintonewproducts;consumersarethengivennewjeans.

LOCAL INITIATIVES IN CIRCULAR ECONOMYExamples of locally-based dissemination and sustainable processing

Cattle dung-powered biogas reactor, Padang (PT Swen IT)

Local recyclers, Indonesia Plastic Recyclers Association (ADUPI)

3,400 units in 243 regencies/cities in 33 provinces

400,000 tons of plastic a year are recycled from a total of 3–4

million tons of plastic consumption

CIRCULAR ECONOMY AND NDCA Zero-Waste Economy to Support Reducing Emissions

No. Sector

2010(MillionTonsofCO2e)

2030EmissionsLevels(MillionTonsofCO2e)

EmissionsReducAons

MillionTonsofCO2e %oftotalBAU

BAU CM1 CM2 CM1 CM2 CM1 CM2

1 Energy 453(35.1%)

1,830(61.4%)

1,357(64.3%)

1,271(67.5%) 473 559 15.87 18.76

2 Waste 88(6.8%)

296(9.9%)

278(13.2%)

263(14%) 18 33 0.60 1.11

3 IPPU 36(2.8%)

70(2.3%)

67(3.2%)

66(3.5%) 2.6 3.6 0.09 0.12

4 Agriculture 66(5.1%)

70(2.3%)

65(3.1%)

64(3.4%) 5 6 0.17 0.20

5 LULUCF 647(50.1%)

714(24%)

344(16.3%)

220(11.7%) 370 494 12.42 16.58

Total 1,290 2,980 2,111 1,884 869 1,096 29.15 36.77

CM1=CounterMeasure1(uncondi'onalmi2ga2onscenario)CM2=CounterMeasure2(condi'onalmi2ga2onscenario)

-29%(UNCONDITIONAL)-41%(CONDITIONAL)

INDONESIA’SNDC 2030

CIRCULAR ECONOMY AND NDCEmissions mitigation in the waste sector: in-line with the circular economy

URBANSOLIDWASTESECTOR

BAU CM1 CM2

MiAgaAonstepsintheprocessingofsolidwaste,anincraseinLFGrecoveryimplementaAonfrom2010to2030.

Nomi2ga2onsteps.LFGrecovery

reducesCH4from0.65%to10%.

LFGrecoveryreducesCH4from0.65%to10%.

IncreaseinthepercentageofwastehandledthroughcomposAngand3R(paper).

Nomi2ga2onsteps.Increaseto22%in2020and30%in

2030.

Increaseto22%in2020and30%in

2030.

IncreaseintheuAlizaAonofwastethroughwaste-firedpowerplants/RDF(RefuseDerivedFuel).

Nomi2ga2onsteps.

-  Upto3%oftotalwastein2020andincreasingto5%in2030.

-  Developmentofwaste-firedpowerplantsin7ci2es

-  Upto3%oftotalwastein2020andincreasingto5%in2030.

-  Developmentofwaste-firedpowerplantsin12ci2es(addi2onal)

CIRCULAR ECONOMY AND NDCEmissions mitigation in the power sector: in-line with the circular economy

ENERGYSECTOR

BAU CM1 CM2

UAlizaAonofrenewables(solar,wind,andbiomass/waste)andefficienttechnologiesinpowergeneratorsinaccordancewithGeneralElectrificaAonPlansfor2016–2025.

Nousageofrenewablesand

efficienttechnologies.

Increaseinrenewablesusageandefficient

technologies.

Increaseinrenewablesusage.

100%penggan2anminyaktanahmenjadi

bahanbakargas.

Moreextensiveusageofultrasupercri2caltechnology(44%

efficiency)incoal-firedpowerplants.

Increaseinuseofsuperefficientenergyequipment(bestavailabletechnology,BAT)inindustry,commerce,andresidencesin2030.

0%penetra2on. 10%penetra2on. 20%penetra2on.

IncreaseinuseofbiofuelinthetransportaAonsectorin2030.

Noincrease.Increaseupto5%oftotalenergyfromthetransporta2onsector.

Increaseupto10%oftotalenergyfromthetransporta2onsector.

Inanidealcirculareconomymodel,allacAvityispoweredby

cleanenergy.

IPPUSECTOR

BAU CM1 CM2

Managementofindustrialprocessesandproductuse(IPPU)inlargeindustries.

Nomi2ga2oninindustrialprocesses.

Reducing“clinkertocementra2o”inthecementindustry(blendedcement)from80%in

2010to75%in2030.

Increasingamountofcementcompaniesthatreducetheir

“clinkertocementra2o”(blendedcement)from80%in2010to75%in2030.

Ammoniaindustry:increaseinefficiencythroughop2miza2onofnaturalgasusage(feedstock)andCO2recoveryinPrimary

Reformers.

Ammoniaindustry:increaseinefficiencythroughop2miza2onofnaturalgasusage(feedstock)andCO2recoveryinPrimary

Reformers.

Othersteps:-  Steelindustrytoimplement:

CO2recovery,processimprovementinsmelters,u2liza2onofscrapiron

-  RemainderofIPPUclaims(PFCs)fromCDMaluminumsmelters.

Othersteps:-  Steelindustrytoimplement:

CO2recovery,processimprovementinsmelters,u2liza2onofscrapiron

-  RemainderofIPPUclaims(PFCs)fromCDMaluminumsmelters.

CIRCULAR ECONOMY AND NDCEmissions mitigation in the IPPU sector: in-line with the circular economy

POSITIVE MARKET POTENTIAL

Indonesia ranks seventh overall out of 50 countries on the 2015 Top Markets Study (TMS) with the market for environmental technologies valued at USD

6.3 billion in 2016. (International Trade Administration, 2016)

Environmental technologies for waste and recycling

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