National Context and Arrangement for Implementation of NAMAs: Indonesia

Farhan Helmy Secretary of Mitigation Working Group, DNPIIntroductory Workshop on Nationally Appropiate Mitigation Action (NAMAs)Kuala Lumpur, 29-30 July 2013

Outline

• NAMAs Context in Indonesia’s Mitigation Framework• Road to NAMAs: Four Routes• MRV and MER• Climate Financing and Investment• Stakeholders Engagement • Challenges Ahead: Future Avenue

National Context and Arrangement for Implementation 2

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NAMAs Context in Indonesia’s Mitigation Actions Framework• Political action is yet to take shape in form of concrete policies

and investment decisions that will help mitigate the impacts of climate change in integrated, long-term vision framework:

– Action: effective, efficient low carbon development scenarios National Action Plan

– Governance: evaluation and monitoring through a robust MRV system and key stakeholders engagement in inclusive manner National GHG Inventory System

– Market and non-Market Approaches: finding the effective and efficient mechanisms and a robust institutional arrangement (under development)

• The need for changing strategic focus to respond to the on-going institutional dynamics in developing policies based on sound science, which leads to targeted investment in green initiatives.

• Three strategic spheres of science, policy and investment into consideration, the government/DNPI aims at looking at

– Science for building appropriate scenarios in order to be better prepared for the future

– Policy for creating the facilitative environment for dialogue and enabling conditions,

– Investment for generating the right culture for sustained investment in green initiatives.

National Context and Arrangement for Implementation

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Route 1 – Integrated Process into National Planning

• Legal Basis: Presidential Decree 61/2011 on National Action Plan on GHG Emission to achieve 26%(domestic) and 41%(international support) emission reduction targets, covering 70 programs classified as core and supporting activities.

• Enggagement of provincial governments through Provincial GHG Emission Reduction Plan (RAD GRK). Out of 33 provincial governments, 31 provinces have established a RAD GRK

• Establishement of Indonesia Climate Change Trust Fund (ICCTF)

• Establishement of Monitoring, Evaluation and Reporting (MER) as a framework and mechanism to track and evaluate the progress and performance.

National Context and Arrangement for Implementation

Source: Bappenas (2012)

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NATIONAL ACTION PLAN. Indonesian emission is expected to increase from 1.72 to 2.95 GtCO2e (2000-2020). Proposed National Action Plan on GHG Emission

Reduction(RAN-GRK) consist of 70 programs distributed among various sectors .

SectorsEmission Reduction Plan

(Giga ton CO2e) Agency

26% 15% (total 41%)

Forestry and Peat

Waste

Agriculture

Industry

Energy and Transportation

0.672

0.048

0.008

0.001

0.038

0,367

0.030

0.003

0.004

0.018

Ministry of Forestry, Ministry of Environment, Ministry of Public Works, Ministry of AgricultureMinistry of Public Works, Ministry of Environment

Ministry of Agriculture, Ministry of EnvironmentMinistry of Industry

Ministry of Transportation, Ministry of Energy and Mining, Ministry of Public Works

0.767 0.422

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Route 1 – Monitoring and Evaluation, Common Reporting Format

National Context and Arrangement for Implementation

Source: Bappenas (2013)

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Route 2 – REDD+ Institutional Set-Up

• Institutional arrangement is taking shape towards a REDD+ Agency establishment

• Instrument/Mechanism/pilot exercises• MRV Strategy for REDD+• Funding for REDD+ in Indonesia (FREDDI)• Provincial Strategy for REDD+• Moratorium for releasing new licences in

primary forest and peatland areas• “One Map” initiatives dealing with spatial

database integration• Tested areas in implementing REDD+

National Context and Arrangement for Implementation

Source: Satgas REDD+ (2012)

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Route 3 – NAMAs through UNFCCC Registry (as of July 2013)Defining NAMAs• Consistent with UNFCCC definition , mechanisms and 1st

Indonesia submission on potential mitigation areas• In-line with national policies (Mid-term National Development

Plan (RPJM), National GHG Emission Reduction, and related policies)

• Transformational (efectivity, impacts, scalling-up potentials, financing)

• Co-benefits• Inclusive, tranparent and broader enggagement (GO, NGOs at

national and sub-national levels)

Mechanisms• Proponent to submit NAMA to the NAMA Registry Focal Point• Secretariat will examine NAMA submit or conduct

administration screening and then pass the NAMA to the Experts

• Experts to provide analysis and forward it to the Secretariat to further approval process

• Approval Committee to carefully examine NAMAs submission• NAMA submitted submitted tp UNFCCC• Feedback from UNFCCC may be delivered through NAMA

Registry Focal Point or directly to the Proponent.National Context and Arrangement for Implementation

Source: DNPI (2013)

Source: DNPI (2013)

• Clean Development Mechanism (CDM):• 212 projects recieved LoA• 140 projects registered in UNFCCC, 27 project recieved

CER• 3 proposals under consideration (2013)

• Feasibility Study for Bilateral Offset Credit Mechanism funded by Japan Government: • 2010-2012: 32 projects• 2012-2013: 25 projects

• Voluntary Carbon Market (VCM)• 11 Verified Carbon Standard (VCS) projects, 6 project s

produced 2.2 millions tones VER• Partnership for Market Readiness (PMR)

• Strategy for market based mitigation actions including pilot activities

• Pilot project s: mitigasi berbasis pasar untuk: MRV Systems Design for Electricity Instalations in

Java-Madura-Bali (300 units) MRV System for cement industries

• Nusantara Carbon Scheme Mechanisms (SKN), voluntary certified emission reduction,(under development).CDM Indonesia registerd in di UNFCCC based on type

CDM approval through DNA (2005 – now)

Route 4 – Other Potentials

National Context and Arrangement for ImplementationNational Context and Arrangement for Implementation

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On MRV– Institutional Challenges

National Context and Arrangement for Implementation

Source: REDD+ Task Force (2011)

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National GHG Inventory System and related Activities

• Legal Basis: Presidential decree 71/2011 on National GHG Inventory System(SIGN)

• Top-down/bottom-up approaches by linking line ministries and sub-national governments through SIGN Center organized by Ministry of Environment

• As an integral part of other reporting mechanism, such as National Communications, and BUR.

• Proposed to be a modality for MRV AgencyOther related activites:• Indonesia Carbon Accounting System (INCAS,

Ausaid) - Land/Use Cover Maps(1990-2011)• One Map initiative - One Reference, One

Standard, One Database, One License• MRV under proposed Bilateral Offset Mechanism

(BCOM, Japan-Indonesia) – 57 Feasibility StudiesPeatland and Peatland Mapping under Indonesia Climate Change Center, www.iccc-network.net, Indonesia-US)

• MRV under CDM Programs

National Context and Arrangement for Implementation

Source: Ministry of Environment (2013)

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On Climate Financing and Investment

Proceedings• Indonesia Climate Change Sectoral Roadmap

(ICCSR, Bappenas, 2009)• Green Paper: Economic and Fiscal Policy Strategies

for Climate Change Mitigation in Indonesia, Ministry of Finance (2009)

• Indonesia’s GHG Abatement Cost Curve (DNPI, 2010)

• Low Carbon Growth Strategy (LCGS) at Provincial Level (DNPI, 2010)

• Low Carbon Development Options (DNPI, Ministry of Finance and the World Bank, 2010)

Progress (as of July 2013):• Indonesia Climate Change Trust Fund (ICCTF), 2009• Fiscal instrument to support GHG Emission

Reduction implementation at national/sub-national level, 2012

• Fund for REDD+ in Indonesia(FREDDI, underway)• Other climate financing and investment (JCM,

PMR, underway)

National Context and Arrangement for Implementation

Source: DNPI (2010)

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NAMAs Indonesia Status (as of July 2013)

• Indonesia has submitted the first NAMAs (2010) as a general direction of potential mitigation actions to be recognized as NAMAs including:

• Sustainable Peat Land Management, Reduction in Rate of Deforestation and Land Degradation, Development of carbon Sequestration Projects in Forestry and Agricultures, Promotion of Energy Efficiency, Development of Alternative and Renewable Energy Sources, Reduction in Solid and Liquid Waste, and Shifting to Low-Emission Transportation Mode.

• In 2012 Indonesia has submitted a NAMAs on Sustainable Urban Transport to NAMAs registry(http://unfccc.int/cooperation_support/nama/items/6982.php)National Context and Arrangement for Implementation

Source: DNPI(2012)

Other prepared Proposals(as of 15 July 2013)

Policy Framework:The Indonesia Aviation Green Initiatives on Mitigation of Climate Change and Reduction of GHG Emissions pillars: Green Flight, Green Corridors and Green/Eco Airports• The Green Flight Initiatives (by modernization fleets, industry

infrastructures and operational efficiency)• The Alternatives Fuels and Renewable Energy Initiatives • The Green Corridor Initiatives (by Improving the Air Traffic

Management and Navigation Services based PBN system) • The Enhancing the Green/eco-Airport implementation• Development the Market-based Measures to address any

emission gap of international flight under the ICAO Guidelines.

NAMAs Proposals:• Indonesia Green Aviatiation Initiatives: Sustainable

Development on Renewable Energy for Airport Operation – Funding needed : 34 millions USD

• Indonesia Green Aviation Iniatives for Sustainable Development on Alternative Fuels for Aircraft Operation

– Funding needed 500 millions USD

National Context and Arrangement for Implementation 14

Source: Ministry of Transportation (2013)

Stakeholders Engagement (as of July 2013)

• Series of Policy and Technical Dialogue: MRV, low carbon economy, policy and modelling, expert briefings on mitigation related issues, geo-spatial technology, 100 villages mapping initiative; green investment, innovation and productivity; service reform dialogue on CC(SEREDI)

• Indonesia Carbon Update Network (ICU-Net, www.indonesiacarbonupdate.net) low carbon economy, green Innovation, policy and assessment, geospatial technology, knowledge Warehouse, open source initiative, MRV and ICU-net portal(www.indonesiacarbonupdate.net)

• Sapporo Initiatives: strategic integrative research in the framework of low carbon economy; integration of science and capacity building efforts in economy-wide climate change mitigation research; geo-spatial technology; a new approach on mobilizing and deploying financial/technical resources (GO, private)

• Asia Forum on Carbon Update (AFCU-Net, www.afcunetwork.net): networking and collaborative efforts on low carbon economy, technology and capacity building for scientific communities in the Asian region.

• Green Investment, Innovation and Productivity, www.greeninvestmentindonesia.net• University Network on Climate Change: 19 universities, Trans Kalimantan University (more

than 100 universities)• Inisiatif Pemetaan 100 Desa.• International Partnership on Mitigation and MRV, www.mitigationpartnership.net• South East Asia Network on Climate Change Focal Points(SEAN-CC, www.sean-cc.org),

UNEP.• Indonesia Climate Change Center (ICCC) (US-Indonesia Comprehensive Partnership),

www.iccc-network.net• East Asia Carbon Partnership on Low Carbon Society• Open Source Initiative for Climate Change Governance (DNPI, WRI, ...)

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Challenges Ahead: pre dan post 2020

• Translating global agreement into national and sub-national policies: national(2013-2014), international (2015, 2015-2020, > 2020)

• Sistematic Knowledge Management of “lesson learnt” “Proof of Concept” in potential sectors

• Developing strategic policy measures and capacity building to respond on-going institutional dynamics

• Broadening stake holder engagement i.e public-private scheme?

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Future Avenue: Two Options

Non Climate Change Act/legislation through existing instruments and mechanisms:• Existing intruments and mechanisms

coul be modalities BUT not enough to respond to long-term uncertainty and commitment.

Climate Change Act/legislation:• Give long-term signal on policy

direction, commitment as well as public and private engagement.

• Investment certatinty to drive a green economy.

• Long-term national security.• Create new opportunity for highest

added value and new employment such as green jobs, green industry, green consumerism, etc.

Source: DNPI (2013)

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THANK YOU

National Context and Arrangement for Implementation