agus purnomo. indonesia. low carbon strategies and challenges

8/7/2019 Agus Purnomo. Indonesia. Low Carbon Strategies and Challenges

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Low Carbon Strategies and Challenges

- Indonesia

Agus Purnomo

Head of Secretariat, National Council on Climate Change


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Indonesia's GHG emissions are growing fast and are drivenby forestry and peat

1


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2

85 percent of Indonesias emissions in 2005 stem from land

use related activities

1 Includes absorption of managed forests and timber plantations

SOURCE: Indonesia GHG abatement cost curve

243 246 300

550

129

313

2,052

1,739

763

Totalemissions

Othersectors

Totallanduserelated

Agri-culture

PeatFire

Peatdecomp-osition

Absorp-tion1

Degrad-ation

Deforest-ation

85%of total

Breakdown of Indonesias emissions into majorsourcesMillion ton CO2e

Land use related emissions

Emissions from other sectors


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The potential to reduce emissions is representing up to 5 percent of globalabatement needed

955

225

3,260

Remainingemissions

OtherAgriculture

106

PowerPeat

56

Petroleum

61

Transport

87

609

LULUCF

1,161

Totalabatement

Percent oftotalreductionpotential

1 2 3 4 5

SOURCE: DNPI Indonesia GHG abatement cost curve

50 26 10 5 4 3

6

Projected abatement potential

Million tons, CO2e Indonesia has a total reductionpotential of 2,305 MtCO2e, 70% ofits projected business as usualemissions of 3,260 MtCO2e in2030


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Indonesias Vulnerabilities

Sea level rise & land inundation threatens coastal

zonesNorth coast Java, south Kalimantan,west Sumatra

Water changed water balance leading to droughts andfloods regionally differentiated

Agriculture food security threatened, and decliningproductivity in particular rice cultivation

Health spread of diseases correlated to effects of climate change(malaria, dengue, cholera, diarrhea etc)


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Results

President Yudhoyono has taken the climate change agenda from obscurityto national prominence

2007 2008 2009 2010

Events

NCCCestablished

Bali ActionPlan

Forest G11

Nationalemission

reduction plan

Indonesia GHGemission cost curve

President Yudhoyonocommited to a 26%emission reduction

Central Kalimantan andJambi Low CarbonGrowth Plan

COP13 (Bali,Indonesia)

Indonesiaassociates withCopenhagenaccord

NCCC press conference G20 summit (Pittsburgh, USA) COP15 (Copenhagen, Denmark)

EastKalimantanlow-carbongrowth plan


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Indonesia is charting a green growth plan which will ensure sustainableeconomic growth with a smaller carbon footprint

Three provinces have responded thePresident by developing green growthstrategies with DNPI

We are devising an energy mix

policy that will reduce ouremissions by 26% by 2020. With

international support, we are

confident we can reduce

emissions by as much as 41%

CO2Mitigation

AdaptationEconomicdevelopment

Insti-tutional

enablers

Low-Carbon Growth Plan


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MAINSTREAMING CLIMATE CHANGE INTONATIONAL DEVELOPMENT AGENDA

Bi-/Multilateralcooperation

BALI ACTION

PLAN

PRES

STATEMENT:

G20 2009

M

AICCTF

ROADMAPS

(ICCSR)

Bridges NationalAction Plan on CCinto 5 yr mid-termdevelopment plan(RPJM) 2010-2014 &inputs till 2030.

ICCTF- Internationalfinancing mechanismchannelinginvestment funds intonational CCinitiatives.

GoIs ownbudget

Mainstream

ing into

RPJM

RAN - GRK

YellowBook

7


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NATIONAL PRIORITY & ACTION PLAN 2010-2014

1

2

3

4

5

6

7

8

9

10

11

Bureaucracy Reform and Good Governance

Education

Health

Poverty Alleviation

Food Security

Infrastructure

Investment Climate

Energy

Environment and Disaster Management(incl. Climate Change)

Disadvantaged, Borders and Post-Conflict Areas

11 National Priorities-

Indonesian Cabinet

2010-2014

Culture, Creativity and Technology Innovation

8


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PRIORITY FOCUS

Land, Area Development & Agriculture Spatial

PlanInfrastructure

Research and Development

Investment, Finance and Subsidy

Food and Nutrition

Adaptation to Climate Change

FOOD SECURITY

Policy

Restructuring of State Enterprises

Energy Capacity

Alternative Energy

Oil and Gas Derivative Production

Gas Conversion

ENERGY

Climate Change

Environmental Degradation Control

Early Warning System

Capacity Building on Disaster Mitigation & Forest

Fire

ENVIRONMENTALAND DISASTER

MANAGEMENT

9


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The National CC Roadmap

The Climate Change Sectoral Roadmap will support the

GOIs development vision related to climate change for the

next 20 years. The implementation of the Roadmap will

be through National Development Plan; the next

Development is for period 2010 2014.

There are nine priority sectors:Mitigation Sectors-: Energy, Forestry, Industry,

Transportation, Waste ManagementAdaptation Sectors-: Agriculture, Marine and Fishery,

Water Resources, Health

10


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Scenario of 26% GHG Emission Reduction

UnilateralandInternationalSupport

President SBY commitment at theG-20 Pittsburgh and COP15

To reduce GHG Emission in 2020

26%

15%Unilateral

RAN-GRK

26%41%

11


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+15%

26%

Criteria:Potentially measured, reported and verified(MRV), clear and concise contracts, clearexecuting agencies, higher abatement cost ,not included in CDM project

Criteria:Potentially measured, reported and verified(MRV), lower abatement cost, Mid-Term Dev.Plan, national priorities, economically feasible,not included in CDM project

RAN-GRK

Based on proposals of actions from Implementing Agencies

Quick start: existing actions with co-benefits emissions reduction

12


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1.0

1.5

2.0

2.5

3.0

3.5

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

E

missionRate

(GtCO2)

BAU Skenario 26%

26%

13


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Approach Toward Low Carbon Economy

Mainstreaming adaptation and mitigation policies tomedium term sustainable development agenda

Shifting the economy toward low carbon growth path

Framing the policy within the pro-growth, pro-job, pro-

poor development principles

Taking advantage of global mitigation efforts and

financial support

Getting ahead of competition through low carbon

features, policy incentives and delivering our 26%

emission reductions from BAU 2020 commitment

14


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15

A low carbon growth plan is a holistic approach where economic growth,CO2 mitigation and adaptation go hand in hand

Framework for Low-Carbon Growth Plan

CO2 Mitigation

Estimate the size of current and future emissions Assess the technical abatement potential and

feasibility, and implementation cost of individualmitigation initiatives

Economic development

Analyse existing competitive strengths and

weaknesses Explore potential new sourcesof growth (requiring less carbon emissions)

Adaptation

Analyse existing and future climate threats Explore adaptation measures and estimate total

cost of realizationInstitutional enablers

Develop strategy for critical enablers (e.g.,monitoring and evaluation, spatial planning,community engagement)

Estimate the total costs of realizing theseopportunities

Key elements

CO2Mitigation

AdaptationEconomicdevelopment

Insti-tutionalenablers

Low-Carbon Growth Plan

SOURCE: DNPI Low carbon growth team; team analysis


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16

The Councils work with Central Kalimantan, East Kalimantan and Jambi

has led to other provinces requesting low carbon growth strategies

SOURCE: DNPI

AcehSumatra

Utara

Riau

EastKalimantan

West

Kalimantan

Papua

South

Sulawesi

Lampung

West JavaCentral

JavaBali

Jambi

CentralKalimantan

Showed interest for lcgp

Existing lcgp

Implementing lcgp

D t il d l b th t t i h b d l d


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17

Detailed low carbon growth strategies have been developed

SOURCE: DNPI; Pemda Kaltim, Pemda Kalteng, Pemda Jambi

Low-Carbon Growth Plans

Sustainable economic developmentstrategy

Competitive strengths and weaknesses New sources of growth

Sector strategies

Abatement opportunities, pilot projects,policies required

Palm oil, forestry, agriculture, coal, oil &gas

District strategies

Districts size and land use Emissions and potential for abatement

GDP and employment

Implementation and enablers

Detailed action plan Critical enablers required Estimate of total costs

Key elements of LCGS

Kalteng

KaltimJambi

Indonesia


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East Kalimantans low carbon

strategy and challenges

Introducing East Kalimantan


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Introducing East Kalimantan

Significant remaining natural forestcover

Land area: 19.7million ha

Natural Forest: 12.8million ha

Population:3,550,586

GDP: IDR 103 trillion

GDP per capitaranked 2nd out of 33provinces1

1 In year 2007

45

19

7

6

8

6

18

5

12

25

18

3420

14

Coal & Mining

Forestry

Palm oil/Estate crops

Agriculture

Employment2008

1.26 Million

Workers

2 3

CO2emission2005

Oil & Gas

Services/Others

Manufacturing

Construction

100% =

23

46

59

255Million

Ton CO2e

1

GDP2008

103Trillion

IDR

2

SOURCE: BPS Kaltim; East Kalimantan Environmentally Sustainable Development Strategy by National Council for

Climate Change and Government of East Kalimantan

Large share of emissions is generated by theagriculture, palm oil and forestry sectors

E t K li t h b d i b th il d t


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20SOURCE: BPS

Real GDP growth, 1983-2008IDR Trillion, Constant price 2000

35

Services/Others

Manufacturing

Coal & Mining

Forestry

Palm oil

Agriculture

2008

103

07

99

Construction

95

67

94

64

93

55

92

49

91

50

90

47

89

44

88

43

87

44

86

43

85

43

86

2000

82

99

79

98

76

97

76

96

73

+3% p.a.

Oil & Gas

84

42

1983 06

97

05

94

04

91

03

89

02

88

01

+5% p.a.

East Kalimantans economy has been driven by the oil and gas sector,

however this is in decline while coal, palm oil, and services are growing fast

In the BAU scenario CO e emissions would reach 331 Mt by 2030 however


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21

In the BAU scenario, CO2e emissions would reach 331 Mt by 2030, howeverpursuing a sustainable growth path can reduce this by 60 percent

SOURCE: team analysisGross emissions are excluding absorption from managed forests and oil palm plantation

Manu-facturing

Agri-culture

PetroleumandRefining

Forest &ForestIndustry

Mining

16

Palm oil Minorinitia-tives

Total

11

13

Emissionsafterabatement

Majorinitia-tives

Services Con-struction

184 -60%

Share ofemissions,percent

18.5 21.0 22.9 16.8 3.26.1 4.8 6.7 100

Sources of emissions differ between provinces


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22

Sources of emissions differ between provinces

Emission from power and oil andgas mainly along the coastline

Emissions from LULUCFsignificant in all regencies

Emissions from peat dominate inNunukan and Kutai Kartanegaradistricts

= 1 Mt CO2 from Power

= 0.5 Mt CO2 from Transport

= 2.5 Mt CO2 from Oil/Gas

= 10 Mt CO2 from Peat

= 10 Mt CO2 from LULUCF

= 10 Mt CO2 from Fire

SOURCE: Kaltim Green, Wetlands International, East Kalimantan Statistics 2009, DNPI Indonesia GHG Abatement Cost Curve

Emissions are not evenly distributed with the three largest
http://images.google.co.in/imgres?imgurl=http://green-drop-home.com/zencart/images/orchids-supplay/peat.jpg&imgrefurl=http://green-drop-home.com/zencart/index.php?main_page=product_info&products_id=111&usg=__l5r9LDBxdqK_SwI0Qhrbq9xDaCg=&h=1704&w=2272&sz=912&hl=en&start=5&um=1&itbs=1&tbnid=1-Z-6RxIB3SzMM:&tbnh=113&tbnw=150&prev=/images?q=peat&um=1&hl=en&sa=N&tbs=isch:1http://images.google.co.in/imgres?imgurl=http://green-drop-home.com/zencart/images/orchids-supplay/peat.jpg&imgrefurl=http://green-drop-home.com/zencart/index.php?main_page=product_info&products_id=111&usg=__l5r9LDBxdqK_SwI0Qhrbq9xDaCg=&h=1704&w=2272&sz=912&hl=en&start=5&um=1&itbs=1&tbnid=1-Z-6RxIB3SzMM:&tbnh=113&tbnw=150&prev=/images?q=peat&um=1&hl=en&sa=N&tbs=isch:1http://images.google.co.in/imgres?imgurl=http://green-drop-home.com/zencart/images/orchids-supplay/peat.jpg&imgrefurl=http://green-drop-home.com/zencart/index.php?main_page=product_info&products_id=111&usg=__l5r9LDBxdqK_SwI0Qhrbq9xDaCg=&h=1704&w=2272&sz=912&hl=en&start=5&um=1&itbs=1&tbnid=1-Z-6RxIB3SzMM:&tbnh=113&tbnw=150&prev=/images?q=peat&um=1&hl=en&sa=N&tbs=isch:1http://images.google.co.in/imgres?imgurl=http://green-drop-home.com/zencart/images/orchids-supplay/peat.jpg&imgrefurl=http://green-drop-home.com/zencart/index.php?main_page=product_info&products_id=111&usg=__l5r9LDBxdqK_SwI0Qhrbq9xDaCg=&h=1704&w=2272&sz=912&hl=en&start=5&um=1&itbs=1&tbnid=1-Z-6RxIB3SzMM:&tbnh=113&tbnw=150&prev=/images?q=peat&um=1&hl=en&sa=N&tbs=isch:1http://images.google.co.in/imgres?imgurl=http://green-drop-home.com/zencart/images/orchids-supplay/peat.jpg&imgrefurl=http://green-drop-home.com/zencart/index.php?main_page=product_info&products_id=111&usg=__l5r9LDBxdqK_SwI0Qhrbq9xDaCg=&h=1704&w=2272&sz=912&hl=en&start=5&um=1&itbs=1&tbnid=1-Z-6RxIB3SzMM:&tbnh=113&tbnw=150&prev=/images?q=peat&um=1&hl=en&sa=N&tbs=isch:1http://images.google.co.in/imgres?imgurl=http://green-drop-home.com/zencart/images/orchids-supplay/peat.jpg&imgrefurl=http://green-drop-home.com/zencart/index.php?main_page=product_info&products_id=111&usg=__l5r9LDBxdqK_SwI0Qhrbq9xDaCg=&h=1704&w=2272&sz=912&hl=en&start=5&um=1&itbs=1&tbnid=1-Z-6RxIB3SzMM:&tbnh=113&tbnw=150&prev=/images?q=peat&um=1&hl=en&sa=N&tbs=isch:1http://images.google.co.in/imgres?imgurl=http://green-drop-home.com/zencart/images/orchids-supplay/peat.jpg&imgrefurl=http://green-drop-home.com/zencart/index.php?main_page=product_info&products_id=111&usg=__l5r9LDBxdqK_SwI0Qhrbq9xDaCg=&h=1704&w=2272&sz=912&hl=en&start=5&um=1&itbs=1&tbnid=1-Z-6RxIB3SzMM:&tbnh=113&tbnw=150&prev=/images?q=peat&um=1&hl=en&sa=N&tbs=isch:1http://images.google.co.in/imgres?imgurl=http://green-drop-home.com/zencart/images/orchids-supplay/peat.jpg&imgrefurl=http://green-drop-home.com/zencart/index.php?main_page=product_info&products_id=111&usg=__l5r9LDBxdqK_SwI0Qhrbq9xDaCg=&h=1704&w=2272&sz=912&hl=en&start=5&um=1&itbs=1&tbnid=1-Z-6RxIB3SzMM:&tbnh=113&tbnw=150&prev=/images?q=peat&um=1&hl=en&sa=N&tbs=isch:1


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Emissions are not evenly distributed with the three largestdistricts contributing more than 50% of all emissions

Tarakan

0

Sama-rinda

3

Balik-papan

6

PanajamPaserUtara

6

Malinau

7

Bontang

8

Paser

31

Nunukan

40

KutaiBarat

45

KutaiKer-tanagara

52

12

Bulungan

18

Berau

21

KutaiTimur

TanaTidung

2

SOURCE: Kaltim Green, Wetlands International, East Kalimantan Statistics 2009

Gross emissions of East Kalimantans districts

in 5 major industrial sectorsMtCO2e

Forestry

Oil Gas

Mining

Other sectors

Palm oil

Agriculture

Share oftotal EastKalimantanemissions;Percent

20.5 18.2 16.4 12.9 8.5 7.3 4.8 3.2 2.8 2.6 1.4 0.8 0.5 0.1

EAST KALIMANTAN EXAMPLE

Emissions by district detailed sources 0-1 Mt CO2e 2-5 Mt CO2e


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24

Emissions by district, detailed sources

SOURCE: Team analysis

Tarakan

Tana

Tidung

Samarinda

Pasir

Panajam

Paser Utara

Nunukan

Malinau

Kutai Timur

Kutai Barat

Bulungan

Bontang

Berau

Balikpapan

0 1 Mt CO2e

1-2 Mt CO2e

2 5 Mt CO2e

5-10 Mt CO2e

10+ Mt CO2e

1 Palm oil mill effluent

Total

5.9

21.8

18.5

18.2

44.9

KutaiKertanegara

57.6

43.6

6.9

40.2

8.3

12.3

3.5

2.3

0.3

284.3East

Kalimantan

MtCO2e, 2010

0.0

Palm oil

Deforest-

ation

Peat

decompFires POME1

Agriculture

Deforest-

ation Fires

Agric

process

Peat

decomp

Forestry

Forestdegra-

dation

Deforest

-ation

Peat

decomp Fires

Oil & Gas

Upstream

process

Coal mining

6.3 3.1 0.8 2.3

0.0 0.0 0.0 0.0 0.1 0.0 0.0 -0.0 0.0 0.0 0.0

2.6 1.7 0.7 0.3 4.7 3.9 0.5 1.3 -0.2 1.5 1.0 0.3

0.0 0.0 0.0 0.0 0.0 0.0 0.8 0.0 -0.0 0.0 1.5 0.4

2.0 1.5 1.5 0.2 2.5 2.4 1.4 1.0 0.00.1 0.9 2.5 0.6

7.8 4.1 1.9 0.4 8.7 4.0 1.7 3.9 -0.2 1.9 3.1 0.8

5.6 6.0 4.6 0.7 1.8 2.7 4.2 2.8 5.90.8 0.9 7.7 2.0

4.5 3.9 0.8 0.8 0.30.7 1.4 1.7 0.5

0.0 0.6 0.0 0.1 4.7 0.6 0.0 0.0 -0.1 0.5 0.1 0.0

1.4 0.9 7.1 0.3 1.5 2.8 6.8 0.7 -0.4 0.9 12.1 3.1

0.4 0.6 0.0 0.1 2.6 0.8 0.0 0.2 -0.2 0.4 0.0 0.0

1.6 2.1 0.3 0.3 1.2 2.4 0.3 0.8 -0.4 0.8 0.7 0.2

0.0 0.0 0.0 0.0 0.0 0.0 0.3 0.0 -0.0 0.0 0.6 0.2

0.0 0.8 0.0 0.1 0.0 0.9 0.0 0.0 -0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.00.0 0.0 0.0 0.0

26.0 22.4 16.9 3.2 33.8 23.9 16.8 13.0

Refining

and LNG

Gas

Flaring

3.3-

--

15.1-

-0.1

--

-1.4

-0.2

--

--

--

--

--

--

-0.0

18.41.7

Other

2.5

0.4

0.7

0.5

0.6

2.8

0.2

0.2

0.4

0.1

0.6

2.1

0.5

0.2

11.86.2

Deforest-

ation

Mining

process

Methane

release

---

0.40.81.5

---

0.10.10.8

0.50.94.4

0.81.55.4

4.38.13.7

0.00.0-

0.10.31.4

0.81.40.7

0.10.10.4

0.10.20.0

0.00.00.0

---

7.213.518.43.2 9.4 31.0 8.0

Other Total

Potential CO2e reductions disaggregated to all districts 2-50-1


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25

Potential CO2e reductions disaggregated to all districts


Tarakan

Tana Tidung

Samarinda

Pasir

PanajamPaser Utara

Nunukan

Malinau

Kutai Timur

KutaiKertanegara

Kutai Barat

Bulungan

Bontang

Berau

Balikpapan

5+1-2

EastKalimantan

Abatement by source, MtCO2e 2030

1 Reduced impact logging

2 Includes the use of degraded land (13.9 MtCO2e) and REDD (9.8 MtCO2e) payment schemes

Palm oil

Zeroburning

De-gradedland

Watermgmt POME

Yieldin-crease

Con-cessionbuyouts

0.00.0 0.0 0.00.0 0.0

0.21.5 1.0 0.30.3 0.0

0.00.0 0.0 0.00.0 0.0

0.21.2 0.2 0.60.2 0.5

0.44.7 1.2 0.70.4 1.9

0.73.4 1.9 1.80.8 2.6

0.72.7 3.4 0.30.8 0.0

0.20.0 0.2 0.00.1 0.3

0.20.8 1.5 2.80.2 0.0

0.10.2 0.1 0.00.1 0.4

0.31.0 1.8 0.10.3 0.0

0.00.0 0.0 0.00.0 0.0

0.10.0 0.0 0.00.1 0.2

0.00.0 0.0 0.00.0 0.0

3.115.6 11.4 6.83.3 6.0

Oil &Gas

ZeroFlaring,Process

-

0.8

0.1

-

1.4

0.2

-

-

-

-

-

-

0.0

2.7

0.3

Agriculture

Zeroburnpolicy

Peatrehab

0.0 0.0

0.6 0.2

1.5 0.4

1.9

4.6 1.3

1.0 0.3

0.0 0.0

7.2 2.1

0.0 0.0

0.4 0.1

0.4 0.1

0.0 0.0

0.0 0.0

18.5 5.4

0.9 0.3

0.5

Forestry

Peatrehab

Zeroburnpolicy

Re-forest-ationRIL1

Avoidde-forest2

0.1 0.0 0.0 0.1

4.0 1.08.7 2.3 2.0

3.9

2.4

2.7

3.1

0.6

2.8

0.8

2.4

0.0

0.9

0.1

0.3

0.8

2.5

0.5

0.0

4.0

0.0

0.2

0.2

0.0

0.0

0.8

0.4

1.7

1.4

0.0

0.4

0.1

0.5

0.0

0.0

0.0

0.9

0.6

2.8

3.2

0.6

0.5

0.4

1.1

0.1

0.2

0.0

0.0

4.7

0.0 0.5 0.1 0.0

2.5

1.8

6.3

4.7

1.5

2.6

1.2

0.0

0.0

0.0

0.0

23.8 10.0 7.7 12.534.0

Recla-mation

Reducemethanerelease

Stopillegalmining

0.050.030.08

0.090.050.16

---

0.260.140.46

0.330.180.58

0.190.100.34

0.010.000.01

0.080.040.13

0.040.020.07

0.030.020.05

0.010.000.01

0.000.000.00

---

2.901.562.01

---

0.34

0.67

-

1.90

2.41

1.39

0.04

0.56

0.30

0.21

0.06

0.02

-

8.11

-

Coal mining

Processefficiency

0.10.00.1

0.30.20.1

---

0.40.20.5

0.60.30.6

2.81.50.4

0.00.00.0

0.10.10.1

0.50.30.1

0.00.00.1

0.10.00.0

0.00.00.0

---

4.82.62.0

---

0.4

0.9

-

2.4

3.0

2.9

0.1

0.7

0.6

0.3

0.1

0.0

-

11.3

-

Total

Total

16.2

2.6

12.2

33.2

34.5

31.5

6.8

25.0

6.3

9.8

1.0

1.5

0.1

184

0.5

The 5 biggest initiatives to reduce CO2 emissions


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26

Reducing emissions from peat decomposition of agricultural areas can beachieved by adjusting and maintaining the water table at a sustainablelevel via dam systems and applying best practices in rice cultivation

Reduce peatdecomposition

4

18 MtCO2e

The 5 biggest initiatives to reduce CO2 emissions

Description

Abatement,2030

ZeroBurning

Policy1

Although East Kalimantan has fewer fires than its neighbours, fires fromsmallholders, particularly in peat areas, cause significant emissions

Prohibiting fire as a tool for land preparation, establishing fire brigades andensuring strong enforcement and large penalties for rule violations

47 MtCO2e

Re-forestation

5

Rehabilitate slightly critical land that has been partially degraded. Thereforestation will restore ecosystem services and also sequester carbon

12 MtCO2e

ReducedImpactLogging

2

Most of the emissions from legal logging are due to destruction of biomassthat is not the commercial timber removed and sold.

Reduced impact logging, e.g. skidding tracks, winches, harvest planningcan remove the same about of commercial timber but at lower emissions

KPH forest management units are required, with about 1 forest employee

overseeing 10,000 ha of HPH

34 MtCO2e

Significant emissions from palm oil and agriculture are due to the clearing offorests for land for the crops/plantations

Use of degraded land (lahan critis) for future expansion oil palm, HTI, andagriculture will allow expansion with lower emissions

Initiate land swaps of already granted concessions on forested land withequal sized plots of degraded land

Use ofdegradedland

3

25.3 MtCO2e

SOURCE: team analysis

Palm oil can reduce emissions by over half from better land management


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and would 25% higher economic development than ina business-as-usual scenario

Emissions from the palm oil sector could be reduced by

60% against business as usual

Palm oil can reduce emissions by over half from better land managementwhile increasing growth from productivity improvements


1) Expand on degraded land

2) Yield improvement

3) Oil palm buyout

4) Water management and peatlandrehabilitation

5) Fire prevention and management

6) Reduced process emissions

CO2 reduction initiatives Abatement

MtCO2e

11 MtCO2e

3.3 MtCO2e

3.2 MtCO2e

6.8 MtCO2e

15.6 MtCO2e

3.0 MtCO2e

1) Expand on degraded lands

2) Yield improvements

3) Palm oil concession buyouts

GDP initiatives IDR Trillions

IDR Trillions

1.44

0.14

1.3

10 152005 2520 2030

PembanguanRamah Lingkuan

Businessas usual

Emissions

Abatement

11

7

16

3

33

3

-63%

20 priority initiatives have been identified to reduce the carbon intensity of


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28SOURCE: Diagnostic Workshop; Interviews; Discussions; Working Sessions; Team analysis

20 priority initiatives have been identified to reduce the carbon intensity ofcurrent activities and to grow downstream and low carbon sectors

Oil & Gas Coal Palm oil Forestry Agriculture

Reduce

carbonemissions

Reduce venting

and flaringemissions

Revoke

concessions inprotected areas

Concessions to

degraded lands

Implement

reduced impactlogging

Zero Burning

Policy

Grow low

carbon and

high valueadd sectors

Enforce goodmining practices

e.g. rehabilitation

Zero burning landclearance

Use degradedland for

plantations

RehabilitateOpened Peat

land

Flare/use

methane leakage

Accelerateexploration

Use methaneleakage

Raise landproductivity

REDD readiness Raising Yields

Develop CBMpotential

Build crude palmoil refinery in East

Kalimantan

Develop 2.6m toncapacity pulp &

paper and forest

products

mills/plant

New crops andaquaculture

Develop new

LNG/petro-

chemical complex

East Kalimantan is at a transition from strategy to implementation for its


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Roll out pilot program acrossthe whole province oncereadiness program has beencompleted and funding forcontinuation has been secured

Continue to develop keyenablers (e.g. spatial planning,MRV, etc)

Design organizational set upof Governor green deliveryunit

Identify KPIs and reportingmechanisms of delivery unit

Develop detailedimplementation plan and KPIsfor each district

Identify funding sources andproposals

Build key enablers:

Basic MRV systems,including provincebaseline

Integrated spatial planning Financial distribution

mechanisms

Community engagement

mechanism

gy plow carbon growth plan


Low carbon

growth strategy

Basic readiness

implementation

Low carbon

growth pilots

Develop a low carbon growthstrategy that identifies: Identifies major sources of

emissions across theprovince and across

different industry sectors Identifies major abatement

opportunities and actionsfor promoting sustainablelivelihoods

Identifies critical enablers

Analyzes costs for carbonabatement and sustainablealternative livelihoods

Priority areas of support to East Kalimantan implementation phase


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30

y pp p p

Description

Define organizational structure, key processes, deliverables, KPIs and reportingrelationships

Establish regular operations and meetings with clear leadership of the Governor Define responsibilities vis--vis existing government departments, connection to

DNPI and national institutions, and counterparts in the districts Support hiring of new positions and building day-to-day capabilities to implement

the strategy


Support districts to develop a pipeline of projects based on identified prioritiesand targets

Develop implementation plans to support launch of low carbon growth plan Identify potential sources of readiness funds and understand requirements for

accessing funds Develop required materials to access funds, e.g. donor-ready proposals

Build critical enablers such as a basic MRV system, integrated spatial planning,community engagement/public awareness

Develop regulatory responses (e.g. optimizing land allocation through spatialplanning, land titling, environmental impact assessments, permitting, etc)

Setting up theGovernors Green

Delivery Unit

Districtincubators: pilotsprojects andprograms

Rapid capacitybuilding forcritical enablers

1

2

3

East Kalimantan framework for REDD Readiness Implementation


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Use of degradedland for palm oil

Peat rehabilitationand conservation

Reduced ImpactLogging

REDDReadiness

Implementation

Land tenureresolution

Spatial planning Revise spatial planning to reflect objective to preserve carbon

Application of state of the art technology Degraded land database

Capabilitybuilding

Create Provincial Council on Climate Change Involve local government departments in pilot initiatives

Pilot program design Provincial investment memorandum (beyond pilot province application)

Improved institutional capabilities Local land registry office

Conflict resolution mechanism for land tenure

Communicationand stakeholdermanagement

Multi-stakeholder approach involving private sector, donors and NGOs Broad government alignment

Supporting enablers

SOURCE: Kaltim Green 31

Snapshot of priority pilots in East Kalimantan


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Avoiding deforestationby shifting new, large-

scale agriculturecultivation to alreadydegraded land Access to degraded land: establishment of

land bank of degraded land

Reliable land registry office as landacquisition and conflict resolution

Funding and compensation mechanisms

Using degraded land (for oil palm)

Reduce forestdegradation through

more sustainableharvesting practices

Create business case for RILimplementation

Explore possibility for REDD creditcompensation

Implement Reduced Impact Logging (RIL)

Rewetting andrestoration of peatlandsto reduce emission from

peat decomposition Establish common framework for peatrehab/ conservation

Build business case for peat-based pilotprojects to enable access to carbonfunding

Peatland rehabilitation and conservation

Revise land use plan tominimize forestclearance while meeting

development goals CO2e reference scenario from current plan Technical optimization of spatial plan on

optimal low emission land conversion Stakeholder engagement to embed revised

process into BAU going forward

Revise East Kalimantan spatial plan


Delivering impact relies on multiple partners, both Indonesian and


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international

DonorsSet high aspiration and

ensure safeguards forcritical issues such asspatial planning, forest

moratorium and landtitling as well as clearfunding commitment

Civil society / NGOsImplementation support for pilot

provinces

Government AgenciesImplementation of required

policy changes identifiedduring the pilots toenable roll out across the

province or evennationwide

East Kalimantan Proof of profitable low carbon

development programs, replicable

nationwide Informs & triggers policy changesat provincial and national level

Private sectorCommitment to change critical enablers

e.g. regulatory requirements aswell as clear investment

commitment


Available Plans and Planning Tools
http://www.gggi.org/index.phphttp://www.google.com/imgres?imgurl=http://1.bp.blogspot.com/_UbK0VwDGzvw/Sref5zGojxI/AAAAAAAAAAM/pGYDrX6HPZs/s320/Logo+Kab.+Kutai+Barat.JPG&imgrefurl=http://www.channelkubar.co.cc/2009/09/sekilas-kutai-barat.html&usg=__ad6MVnwxh422en3HmbFIaT1VGeE=&h=320&w=295&sz=42&hl=en&start=1&zoom=1&um=1&itbs=1&tbnid=7ZjVEKSLlaAIoM:&tbnh=118&tbnw=109&prev=/images?q=Kutai+Barat+logo&um=1&hl=en&tbs=isch:1http://www.google.com/imgres?imgurl=http://www.malangkab.go.id/imgnews/Kab.%20-@Logo_Bulungan_Colour_Big-1.JPG&imgrefurl=http://www.malangkab.go.id/newsdetail.php?id=131&usg=__pb7ovA9cnmki_eDMz2142bnxJFU=&h=320&w=272&sz=26&hl=en&start=1&zoom=1&um=1&itbs=1&tbnid=a4NdCHpbPe9wPM:&tbnh=118&tbnw=100&prev=/images?q=Bulungan+logo&um=1&hl=en&tbs=isch:1http://www.google.com/imgres?imgurl=http://1.bp.blogspot.com/_UbK0VwDGzvw/Sref5zGojxI/AAAAAAAAAAM/pGYDrX6HPZs/s320/Logo+Kab.+Kutai+Barat.JPG&imgrefurl=http://www.channelkubar.co.cc/2009/09/sekilas-kutai-barat.html&usg=__ad6MVnwxh422en3HmbFIaT1VGeE=&h=320&w=295&sz=42&hl=en&start=1&zoom=1&um=1&itbs=1&tbnid=7ZjVEKSLlaAIoM:&tbnh=118&tbnw=109&prev=/images?q=Kutai+Barat+logo&um=1&hl=en&tbs=isch:1http://www.google.com/imgres?imgurl=http://www.energymanagertraining.com/logo/GTZ.gif&imgrefurl=http://www.energymanagertraining.com/logo/logo.htm&usg=__7KFGNezt3qVjaxj6dQN7XgqrTLQ=&h=808&w=1192&sz=17&hl=en&start=2&zoom=1&um=1&itbs=1&tbnid=SlYqhkxDceVcdM:&tbnh=102&tbnw=150&prev=/images?q=GTZ&um=1&hl=en&sa=N&tbs=isch:1http://www.gggi.org/index.phphttp://images.google.com/imgres?imgurl=http://www.salon-europeen-commerce-equitable.org/IMG/jpg/AFD_rvb.jpg&imgrefurl=http://www.salon-europeen-commerce-equitable.org/en/the-fair/financial-partners&usg=__7akjEQ5Bub9I8HSPxITCf7LcbP0=&h=2703&w=2759&sz=1305&hl=en&start=14&um=1&itbs=1&tbnid=tMnZwF8m62zYQM:&tbnh=147&tbnw=150&prev=/images?q=AFD+France+development&hl=en&um=1


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1. Long-Term and Mid-term National Development Plan, Climate

Change Sector Road Maps

2. National Action Plan to Reduce Carbon Emissions (RAN-GRK)

3. Industry (Sub-Sector) Plans, National REDD+ Strategy

4. Provincial (and Districts) Low Carbon Growth Plans

5. OSIRIS, Satellite Based Land-Use Change Map (2000-2010), etc

Available Plans and Planning Tools

Making progress from plans to actions


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1. Mobilize public and market resources for green investments

(beyond CDM), not only in Europe or US, but also in China,Japan, Korea, Australia and NZ

2. Innovative policy incentives

3. Change the way ODA and MDB operates

4. Start now with selected green investments in the region

5. MRV Financial Assistance and its Emission Reduction Results

Making progress from plans to actions

Implementing REDD+ and Low Carbon Growth


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Phase 1:Preparation

Phase 3:Contributions for verifiedreductions

Formation of task force Outside technical resources Task Force/Agency infrastructure Operations of task force Pilot province assessment Development of functional bodies

(MRV, Financing, Agency)

Stakeholder management

Carbon neutral economicdevelopment

Implementation of strategy in pilotprovince

Implementation and enforcementof moratorium, including MRV

Policy development

Stakeholder management National capability building

Carbon neutral economicdevelopment

MRV operation Policy and legal enforcement Stakeholder management

Need forfunding

Phase 2:Transformation

Key

mechanismrequirements

Transparency, accountability, andappropriate safeguards

Established trustee with immediatecredibility

Speed of implementation Quick approval and disbursement

processes Short term involvement


Established trustee Flexibility to accommodate

evolution of REDD+ Agency Administrative capability Capability to disburse


Established trustee Scale to manage large program Multilateral capability

Potentialmechanism

UN-REDD UNDP

World Bank ADB

ADB UNDP World Bank

Private Intl banks Private domestic

banks

ADB UNDP World Bank

Private Intl banks Private domestic

banks

requires a different financing mechanism


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Thanks a bunch.

agus purnomo. indonesia. low carbon strategies and challenges

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