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• FORUM GRUP DISCUSSIAN

VOLUME I/ 2013

Investment-Innovation-Productivity
Rachmat Witoelar

PRESIDENT’S SPECIAL ENVOY FOR CLIMATE CHANGE/
EXECUTIVE CHAIR OF THE NATIONAL COUNCIL ON CLIMATE CHANGE (DNPI)

Indonesia is approaching
a critical time with political
transition in 2014 and pre 2020
and beyond 2020 climate change
negotiations.

64

GREEN INNOVATION

Increasing Awareness
and Initiatives
in Green Building

Green Pathways
for The Future
Indonesia

Rachmat Gobel

CEO OF PANASONIC GOBEL GROUP

Master
Helmsman’s
Concerns on
Green Energy
Investment-Innovation-Productivity
2

• FORUM GRUP DISCUSSIAN

3

• FORUM GRUP DISCUSSIAN

The major demographic changes in Indonesia are (i) rapid urbanization,
which may result in 65 percent of the population living in urban areas by
2050; (ii) population growth, which will continue for several decades at least,
but at a progressively slower rate; (iii) changing age structure, which in recent
decades has produced a growing bulge in the working ages but in future will
lead to a growing proportion of elderly; and (iv) the changing socioeconomic
composition of the population with a steadily growing “middle class.” These
changes need to be taken into account in constructing business as usual
scenarios and in developing mitigation policies
(Population Dynamics and Human Dimension
of Climate Change Indonesia, 2012)

Investment-Innovation-Productivity

Investment-Innovation-Productivity
4

5

• EDITORIAL NOTES

• EDITORIAL NOTES

Green Transformation:

INVEST, INNOVATE AND
BE PRODUCTIVE

Greetings and a warm welcome to our very first
issue of Green Investment, Innovation and
Productivity Magazine!
Over the past two years we, the Green Investment Innovation
and Productivity (GIIP) Initiatives, have been providing a host
of inspiring and insightful ideas, knowledge as well as lesson
learnt from policy makers, business entities and practitioners
in realizing green actions on the ground. “Green Economy
Pathway of The Future Indonesia” is a relevant and contextual
issue for Indonesia for a couple of reasons: firstly, we are really
concerned about the future direction of government policies as
we are approaching a political transition in 2014. The certainty
and sustainaibility of the future direction as well as a strong
institutional foundation will ensure long-term commitment to
engage in the green economy.
Secondly, looking ahead at global and regional economy dynamics
such as the climate change regime and the upcoming ASEAN
integration into One Community Nation in 2015, we encourage
the government to prepare relevant policies and regulations to
that end.
Thirdly, looking back on the most recent economic challenges,
green economy direction will also create a wide range of
opportunities in creating new jobs with high values. Therefore,
putting green jobs in the dialogue will contribute to a better and
healthy Indonesian environment in the future.
This edition outlines two important issues: energy efficiency and
conservation, and sustainable landscape management. Energy
is one of the most important aspects for human beings in daily

activities. We use energy everyday for transportation, heating
and cooling rooms, lighting, and others. However, our primary
source of energy through burning fossil fuels is limited. For that
reason, it is important for individuals, companies, and entire
communities to start reducing energy consumption for daily
use. Once we reduce our energy consumption, we also support
the government program to reduce GHG emissions.
Energy conservation and efficiency are some of the many
mitigation actions to reduce GHG emissions. Energy
conservation includes any human behavior that can result in
less energy consumption. In addition, energy efficiency involves
technologies that use less energy to perform the same function.
Energy conservation and efficiency can also contribute to
greater national security by reducing demand for foreign
energy resources. Therefore, a commitment is needed from all
stakeholders including government, private sectors, NGOs, and
others.
Sustainable landscape management is a concept/practice that
elaborates environmental, economy, and society aspects in an
integrated manner. The implementation of sustainable landscape
management can protect the natural resources, and provide
benefits to humans. In addition, sustainable management is
designed to be both attractive and in balance with the local
climate and environment. Several benefits from sustainable
landscape management are carbon sequestration, clean air and
water, habitat restoration, and increase energy efficiency.

The sustainable landscape management needs to look at
different scenarios such as policy, engineering, finance, and
engagement. However, its implementation could face several
barriers in Indonesia such as governance, economic, and social
challenges. To solve the barriers we need commitments from
all key stakeholders, to translate the concept into commitments
that are suitable to the current condition.
We couldn’t be more excited to have reached this point. Please
take some time to get to know the outline of our magazine. You
will notice the five categories: green pathways, green innovations,
green champions, green insights, and facts and figures. Within
each category, there are articles for you to enjoy.
We are honored to share the work of so many committed
and thoughtful people. We look forward to our reader’s
responses. Feedback may be chanelled on our website, www.
greeninvestmentindonesia.net
We’ll be following these topics. If you come across interesting
new materials, let us know. We will include your case study in an
upcoming issues of GIIP Magazine.
We appreciate your support and are so happy to have you as a
reader of GIIP Magazine.

With warmest thanks,

Farhan Helmy,
Editor in Chief

ISTIMEWA

Investment-Innovation-Productivity

Investment-Innovation-Productivity
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7

• CONTENTS

Contents

• CONTENTS

Green Insights

42

Interview

Advancing Low-emission,
Climate-resilient
Development Across Asia

16-41

SHUTTERSTOCK

SOF

Rachmat Witoelar

Rachmat Gobel

MAS

DOC. JAPAN EMBASSY

Yoshinori Katori

Asia, a continent consisting of 46 countries with a
population of more than 4.2 billion people, or about 60
percent of the global total, has experienced the fastest
economic growth of any region in the world in recent
decades.

Green Investment Forum
SOF

DOC. JICA

Jusman Syafii
Djamal

Atsushi Sasaki

IST

Nurjaman
Mochtar

Green Champions

50

54

DOC. GIIP

Green Pathways:
The Future Indonesia

IST

SHUTTERSTOCK

Contributors

VOLUME I/ 2013

Investment-Innovation-Productivity
Rachmat Witoelar

PRESIDENT’S SPECIAL ENVOY FOR CLIMATE CHANGE/
EXECUTIVE CHAIR OF THE NATIONAL COUNCIL ON CLIMATE CHANGE (DNPI)

Indonesia is approaching
a critical time with political
transition in 2014 and pre 2020
and beyond 2020 climate change
negotiations.

47

8

GHG Mitigation Action and
the Future of Biofuel
Industry

60
64

Better Sustainable
Landscape
Management Needed
Large deforested areas,
accumulations of garbage in
urban as well as in rural areas,
severe flood, damaged coral reef
are among concerns raised by
speakers and participants of Focus
Group Discussion on “Energy
Conservation and Efficiency” on
July 2, 2013.

64

12

SHUTTERSTOCK

A Need for Concerted
Effort: Energy
Conservation and
Efficiency

72
82
84
88

Green Highlights

Investment-Innovation-Productivity

GREEN INNOVATION

Increasing Awareness
and Initiatives
in Green Building

Book Review
Increasing Awareness and
Initiatives in Green Building

Respect and Love
The Nature

“ I’ve seen a stop to excessive fishing and
coral harvesting, and even in Bontang,
Kalimantan, with rampant large scale mining,
there are serious activities to maintain forest
function”

In a bid to encourage the industry to be more
environmentally aware, Matsushita Gobel Foundation and
the Japan International Cooperation Agency (JICA) hosted
the Green Investment Forum.

Green Pathways

NADINE CHANDRAWINATA

Green Pathways
for The Future
Indonesia

Rachmat Gobel

CEO OF PANASONIC GOBEL GROUP

Master
Helmsman’s
Concerns on
Green Energy

Doddy S.
Sukadri

Sandra
Artissa
Khananusit Panjaitan

DNPI and
Low Emission
Development
Strategies
(LEDS)
Partnership.

Asia LEDS
Partnership
Secretariat.

Adrian Muhammad Peter van
C Hayes Farid
Rooij

Australian
Indonesia
National
Climate
Change Center University

National Council
on Climate
Change (DNPI)

ILO Indonesia

Facts & Figures

Green Investment Magazine is joinly published by National Council on Climate Change (DNPI)
in cooperation with Japan International Cooperation Agency (JICA) and Matsushita Gobel
Foundation (MGF).

Network Updates

Contact Address: 	Gedung BPPT I Lt. 16 Jalan M.H. Thamrin 8, Jakarta 10340, Indonesia
	
Tel. +62 21 3190 4635

Photo Gallery

Cover
National
Monument
(Monas) and
surrounding areas
indicate the
challenge of
spartial
reenginering to
cope with
population
dynamics and
climate change
impacts.
(photo credit:
Budiali G)

www.greeninvestmentindonesia.net
@greenIIP

greenIIP, email: greenIIP@ greeninvestmentindonesia.net

Investment-Innovation-Productivity

ADVISORY BOARD
Rachmat Witoelar, Agus Tagor, Agus
Purnomo, Amanda Katili Niode, Rachmat
Gobel, Jusman Syafii Djamal, Atsushi Sasaki,
Farhan Helmy (Secretary).
EDITORIAL BOARD
Farhan Helmy, Amanda Katili Niode,
Titi Murni Resdiana, Masato Kawanishi,
Jun Ichihara, Matsuura Kazuki, Ricky
Rachmadi.
EDITOR IN CHIEF
Farhan Helmy.
EDITORS
Jon Respati, Yudhiarma MK, AG Sofyan,
Teguh Prasetyo.
LAYOUT AND ILLUSTRATOR
Sugara Adi.
PORTAL
Alfan Nasrulloh, Fahmi Januar.
PROJECT MANAGEMENT
Aviana MS Tjokro.
PROJECT ASSISTANTS
Manami Iida, Indra Sucahyo, Dewi Aprianti,
Irmawati Batavia, Jesslyn Tandella, Astri
Indirawati, Bramantyo Dewantoputra,
Soraya Soemadiredja.
8

9

• GREEN PATHWAYS

Better Sustainable
Landscape Management
Needed
Large deforested areas, garbage accumulation as well as in rural
areas, severe floods, damaged coral reefs are among concerns
raised by speakers and participants of Focus Group Discussion on
“Energy Conservation and Efficiency” on July 2, 2013.

S

peakers and participants shared common views that
environmental damages and degradation are highly visible
on the Indonesian landscape, recalling the necessity to
engage the society into greener behavior and practices.

The discussion featured four speakers who presented experiences
in some projects enlightening the situation on the ground, showing
critical elements of landscape management, the challenges they
met and the lessons learned through these experiences.
The experts and practitioners from both private and public
sectors gathered in the Focus Group Discussion (FGD) also
came up with ideas about ways and possible actions needed to
get better results from Sustainable Landscape Management.
Engaging Stakeholders in a Sustainable Forest
Management
Indonesia’s rain forest is currently undergoing a high deforestation
rate. Working on a project in the Berbak area, in Jambi, M. Budi
Kuncoro, Green Prosperity Manager at Millennium Challenge
Account (MCA Indonesia) develops innovative ways to preserve
forests. Particularly, Kuncoro proposed ideas of environmental
preservation and the tools that could be used to merge
environmental sustainability and the economic development of
communities living from these resources.
The forest in the Berbak area is divided into several zones,

• GREEN PATHWAYS

each dedicated to a specific utilization including: National Park,
production forest, protected forest and the community national
park (known as “tahura”). Logging companies and communities
utilizing these resources in an unsustainable way, leading to fast
deforestation and damaging the biodiversity and landscape.
Field experiences have shown how policy and technology
interventions can improve the land management. Building canals,
dams and fishing corridors can ensure better water management.
Land accessibility for villagers make a huge difference in terms
of yield productivity. Also, engaging them in forest management
(in activities such as patrolling against illegal logging) greatly
contributes to sustainability in the area. Developing sustainable
cultures and aquaculture activities in the area contribute to
reduction rate of deforestation. Economic and environmental
services are mutually enforced in these cultures.
However, implementing such development plans and applying
planning tools is challenging. Aligning administrative jurisdictions
and defining formal land use zones with deserved biophysical
features of the landscape is not easy. It requires a Participative
Land-Use Planning (PLUP) approach engaging all the
stakeholders in a dialog to arrive at common goals and collective
solutions to achieve them. At the same time, spatial certainty has
to be guaranteed in order to provide accurate information on the
allowable land-use. Information on clear licensing procedures to
investors is also needed to increase their business confidence.

DOC. GIIP

M. Budi Kuncoro

Green Prosperity Director MCA Indonesia

Investment-Innovation-Productivity

Investment-Innovation-Productivity

BUDIALI G
10

11

• GREEN PATHWAYS

• GREEN PATHWAYS

credits. Solutions are proposed to limit detrimental practices, such
as replacing local corn planting culture which put great pressures
on the land fertility with higher economic value plants like cocoa.
The projects provide benefits to local communities including new
employment possibilities thanks to the project based on a “ground
truthing activity”.

Heri Yunara
Conducted a feasibility study
REDD+ model project for the
Gorontalo

Applying REDD+ Program at Sub-National Levels
In Sulawesi, data shows drastic shrinking of forested areas over
the past 20 years. Deforestation is mainly caused by unsustainable
agricultural activities characterized by irresponsible land clearing
and prevalence of forest fires associated with it, or improper
cutting off trees on steep slope zones that cause capacity
reduction of water infiltration into the soil.

The projects engaged by MGF enjoy full supports from both
Indonesian and Japanese government .

First Hands Encounter With West Java’s Environmental
Issues
Another interesting initiative discussed during the FGD sessions
was the “Fortuga Expedition”, a three months field trip made by
members of the Bandung Technology Institute (ITB), from South
to North coast of Java, aiming at seizing local environmental
problems and finding ways to solve them.
Starting from the South Coast, the team encountered damage
caused by intense mining activities,. But the expedition also got
information about Chevron’s CSR program restoration of a
biological corridor from the Mount Halimun to the Balak National
Park, in West Java through replanting about 250,000 trees in the
area.

DOC. GIIP

Investing in planting material enterprises can greatly increase the production of appropriate
yielding crop varieties of small-scale farmers
The REDD+ program aiming at reducing carbon emissions
from deforestation constitutes an important component of
sustainable land management. The latest version of this program
integrates elements of land conservation and sustainable forest
management.

The expedition was concerned about the negative impacts of
tourism on the fragile ecosystem of Gede Pangrango National
Park, near Bogor, where visitor awareness of environmental
issues need to be increased. At the Citarum watershed to Cisanti
Lake, pictures show dreadful scenes of deforested areas subject to
landslides and degradations. Samples collected in Majalaya showed
high levels of industrial pollution. The team were also confronted
with piles of domestic waste that constitutes a great threat to the
environment. Shocking pictures of the Batujajar Bridge, Bogor,
shows the sad image of a river literally covered by garbage.

Heri Yunara, an activist with the Matsushita Gobel Foundation,
conducted a feasibility study of a REDD+ project at the Gorontalo
region, North Sulawesi.. Using the MRV as the measurement tool,
the MGF team works on 5 projects, which objective is reducing
100,000 metric tons of CO2 emission/year. The project shall
be extended to cover the whole Sulawesi by 2016, contributing
to more than 1,300,000 tons CO2 reductions/ year making the
project to become sub-national REDD+ project in Sulawesi.

Ending at Citarum Mouth, at about 30km east to Jakarta, the
expedition learned about intensive mangrove destruction, and
the rehabilitation initiatives conducted by environmental groups.
Going offshore from the Jakarta Bay, the expedition found that the
Thousands Islands region, a touristic area consisting of more than
300 small islands off Jakarta coast, is facing serious consequences
from global warming and water pollution causing coastal abrasion
and coral reef damage. This situation requires serious attention
from the government to prevent the problems from worsening.

The model also aims at helping local government to conduct capacity
building activities for the communities on the implementation of
the project and providing incentives to encourage a sustainable
use of forest resources in the forms of subsidies and carbon

The trip very useful to raise awareness about environmental
threats happening near home. The expedition also has confirmed
the participants’ interest in reforestation, mangrove protection
and coral rehabilitation programs. They are currently developing

Investment-Innovation-Productivity

DOC. GIIP

Green Landscape. Raising awareness about environmental Threats

100,000,000

Carbon Stock (t-CO2)

DOC. GIIP

The field survey will be supported by two satellites that will
be launched in the coming years in order to monitor the land
condition, resources management practices and natural disasters
threat. The MGF project also installs solar power panels to provide
basic lighting needs for the villagers emigrated from deforested
areas. Yunara said more Japanese aid in solar panel is expected
for regions that lack of electricity including providing power for
medical-clinics..

Iwan Hignasto

80,000,000
60,000,000
40,000,000
20,000,000
0

DOC. GIIP

Citarum-Ciliwung
Expedition 2013

1990

Reference site

methods and tools to overcome the environmental
problems.

2000
2010
year
Project site

Based on the historical trends of carbon stock changes (in red),
Reference Emissions Levels can be established. Model Project
may reduce 30,000 t-CO2/year. With success rate of 70%,
approx 20,000 t-CO2/year is expected.

A Better Water Management to Limit Flood in the City
The city of Jakarta receives 2,300 mm of rain water a year.
However, with a population reaching more than 10 million, the
clean water demand is estimated at 737, 3 million cubic meter per
year. Serious water shortages hit during the dry season.
Landscapes around the city have been severely damaged due
to human activities. Tea gardens planted during the Dutch
colonization accelerated deforestation, and therefore trees could
not assure their role in the water cycle.
According one of participants in the forum, Jakarta’s water issue
mainly relies in land-use changes made without considering
conservation. Authorities still resolve flood in the same devastating
way-horizontal drainage method-letting water flow to the sea.
Canals within the city rapidly overflow with heavy rain.

A new approach has to be put forward to solve floods. It is necessary
to adopt a more global concept of “Total Conservation”, taking
into account landscape conservation aspects (through plantations
for example) and the city’s own characteristics. There needs to be
a change from horizontal to a vertical drainage.
The FGD proposed concrete realizations to be done in different
parts of the city. Dams, ponder systems and rain harvesting should
be developed in the northern part of the city, localized on the sea.
Floods could be reduced by increasing green spaces (to 30%) and
blue spaces (to 12%) in the South of the city. The area of Depok,
Bogor and Puncok should welcome the realization of a vertical
tunnel reaching about 300 meters.
Such realizations could greatly impact floods and the devastating
consequences for Jakarta’s inhabitants.•

Investment-Innovation-Productivity
12

• GREEN PATHWAYS

13

• GREEN PATHWAYS

a need for
concerted
effort:
Energy
Conservation
and Efficiency
Energy conservation and efficiency is the
main topic discussed in the second Focus
Group Discussion (FGD) on 2 July 2013.
SHUTTERSTOCK

Investment-Innovation-Productivity

Investment-Innovation-Productivity
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• GREEN PATHWAYS
be addressed by the project.

Whereas strong commitment and support from local authorities
are necessary, the program administrators also hope to get
support from the central government as part of the national
efforts in transforming the economy into green economy.

Green Buildings Save Money From Energy Efficiency and
Help Protect Environment.
Another interesting topic was the development of ‘Green
Building’, an emerging concept and practice with large
potentials to make great impacts on reducing global warming
and protecting the environment by developing environmentally
responsible and highly energy efficient buildings
The concept implies energy efficiency and using environmentally
non-intrusive materials are imperatives to make the building
“green”. The qualifying criteria for green building are not limited
to the chosen materials, the energy settings and the construction
process but also considering the aspects of building maintenance
and operation. Green building qualification or rating is also
applicable for renovated buildings, in which case the evaluation
includes examining the (old building) demolition activities to
ensure that it meets the criteria

Sustainable Landscape Management. Speakers and participants of FGD are
discussing matters related to sustainable landscape management

S

peakers and participants shared their views on the
responses to the challenges of reducing CO2, by taking
initiative and to obtain economic gains and at the same
time protect the environment. The discussions revealed
many ways how the national and global community can meet the
challenges, from simply replacing incandescent bulbs into more
energy efficient LEDS, to sophisticated projects that require big
investments. But to ensure effective results of all those measures,
there to be needs governments’ strong goverment commitment
which translates the commitment into to be effective policies that
support the public initiatives. There needs to be international
collaborations to achieve the goals, as no single country in the
world can solve the global problems. The followings are some
of the interesting topic discussed in the FGD.

One of the projects engaged by this movement in Indonesia is
promoting the use of highly efficient LED (light-emitting diode)
bulbs to replace the traditional lighting bulbs for public lighting
in two Indonesian cities, Balikpapan and Bogor. Working closely
with local authorities, the organization seeks to embed LEDs
use in the cities’ administration policies and regulations to
ensure its successful and consistent implementation. In doing
so, it hopes to accelerate the transition towards a low carbon
society in the urban centers.
ICLEI has been involved in a three year long program to identify
priorities for reducing carbon emissions in cities and urban
areas.. The project’s scope is not limited to power efficiency
issues but also with other urban issues like waste management.
The project enjoys full support from city administrations that
saw it as a ‘green cause’.

Reducing Energy Consumption In the Public Service
Improving energy efficiency in public lighting system is one of
the ways to reduce energy consumption in cities. This issue was
brought up by ICLEI a movement of 1200 cities in the world
to promote the concept of sustainable cities.

Balikpapan and Bogor were chosen as “model cities” for its
relatively modest sizes and complexity representing typical small
cities in Indonesia. Upon successful outcomes in the two small
cities, the project aims to include four “satellite cities” around
big cities in Indonesia to joining the program. Discussions are
currently being made to define the cities’ needs and priorities to

Investment-Innovation-Productivity

DOC. GIIP

In Indonesia, the green building concept is advocated and
promoted by the Green Building Council Indonesia (GBCI) a
chapter of the World Green Building Council based in the USA..
The organization conduct assessment and rating procedures,
capacity building for relevant stakeholders leading to awarding
“greenship” certification, and general awareness programs for
the general public about the aspects of green building. GBCI
has engaged in discussions with relevant stakeholders including
government agencies to advocate mandatory application of
the concept in line with the efforts to reduce GHG emission
reduction and preserve the environment.
GBCI ensures transparency of the rating process using tools
that are clearly understood by stakeholders. This will ensure
objectivity of the rating applied. The rating process involved
active design to ensure optimum energy efficiency is properly
considered and the building meets sustainability imperatives.
Typical aspects of concern for green building include lighting,
air conditioning, and environmentally friendly technology.
Assessing old and existing buildings poses greater challenges
to GBCI to conduct the rating procedures as their original
design most likely did not consider the aspects critical to green
buildings..
For 2012, GBCI targeted saving over 6 million KWh electricity
reducing almost 6,000 ton of CO2. The 2013 target is set at
34 Million ton of CO2, which will involve certification of 50
buildings covering a total 50 000 m2 built area or alternatively
121 buildings with a total coverage of 20 000m2.
The main barrier of green building development and
transformations are the relatively higher investment to build
new green buildings or transform old buildings to meet green
buildings criteria. While people are willing to do something to

• GREEN PATHWAYS
reduce their electricity bills, most of them are not ready adopt
the entire criteria of green buildings for their property. Most
people do not want to consider to making green investments
unless they se an economic benefit. To overcome this barrier,
time and hard work is required by all proponents of the green
building concept to raise awareness among stakeholders
including building owners, contractors, designers, government
and politicians of the great prospects of green buildings in
contributing to the national target to reduce significant amount
of GHG emission.

Energy Efficiency Pays
The government vision in reducing long term energy demands
gives significant room to energy efficiency (EE) measures. To
justify the validity of this vision, a recently conducted energy
audit by the Ministry of Energy and Mineral Resources
(ESDM) of 481 companies between 2010 and 2012 to assess
energy efficiency potentials in those companies indicated that
companies implementing the basic recommendations for energy
efficiency could make significant economic gains.
At the government levels, the audit showed that the financial
savings resulting from energy efficiency investments were
much higher than the amount of the investment. For example,
replacing 2,8 million traditional street lights bulbs with energy
efficient LEDs would need a total investment of 14 billion IDR
over 10 years period, while the value of the energy saved by
the replacement would be about 90 million IDR . In addition
to save 17,1 million IDR on strict electricity, there would be less
costs for light replacement and subsidy savings. Also, reducing
the energy demand would slow the need for new power plant
and contribute to reduction of GHG emissions.
The main issue is about how to find funds. While Clean
Development Mechanism (CDM) could a good solution, the
price of CERs dropped to 0,5 EUR, which greatly limits its
potential. The main source of funding today is the voluntary
market: in 2012, 101 million tonnes of carbon offset have
been contracted for future delivery. This represents a 4%
increase compared to 2011. The overall market value decreased
compared to 2011 with a volume-weighted average price of 5.9/
tCO2e today (against 6.2 in ).
Offset buyers are mainly companies willing to reduce their
externalities, often in the frame of their CSR policies.
Research programs and Clean Technology Fund constitute
another way to fund energy efficiency. Donors are developing
such projects such as the ADB Private Sector Geothermal
program or the IFC Energy Efficiency and Renewables.
According to a participant from South Pole Carbon, the
Ministry of Finance is interested in providing funding for
the energy efficiency projects as long as they lead to energy
subsidies reduction. In addition to proper savings allowed by
energy efficiency initiatives (estimated at 1,7 billion IDR/ year),
the MoFhopes to reduce subsidies as well; a 790 billion IDR
investment in EE would lead to a 300 billion reduction of
energy subsidies.•

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17

• INTERVIEW

Rachmat Witoelar

• INTERVIEW

President’s Special Envoy for Climate Change
Executive Chair of the National Council on Climate Change (DNPI)

Indonesian Climate
Change challenges
While the international community generally appreciates Indonesia’s commitment to reducing its GHG
emission significantly, many people on the ground were rather skeptical about the effective implementation
of this goal. A great deal of people saw the statement made about 2 years ago by President Susilo
Bambang Yudoyono (SBY) to reduce 26 - 41% of the emission as no more than an image building
campaign that is an obvious ‘signature’ of the two term administration. But the government seems to
mean business by establishing a national plan for the implementation of the plan, the National Action
Plan for Climate Change Mitigation ( RAN-GRK), announced early last year despite the seemingly serious
plan, skepticism remains. One important argument for such skepticism is because the government does
not seem to fully consider the complexity of carbon emission. To meet the overall objective of the carbon
emission reduction, the plan must be embedded the overall national development strategy. Failing to do
it has resulted in the government’s inconsistencies when it comes to making effective policies to meet
the development objectives. Another reason for the skepticism is that legislative politicians rarely speak
or initiate discourses on the issues of climate change. Perhaps their lack of interest in climate change
issues is rooted in their lack of knowledge of the issues. Skeptics say politicians in Senayan seem to
consider the issues as primarily the domain of the government, while on the government side, they find
the efforts in dealing with climate change as half-heartedly implemented. This is evidenced by the lack
of effective authority held by the Ministry of Environment that should the primary agency to deal with
the complex climate issues. This ministry currently does not demonstrate the effective authority to spur
all the national stakeholders to do what it takes to mitigate climate change impacts and to adapt to new
climate parameters.
GIIP spoke with Rachmat Witoelar, a senior politician under Suharto Administration, and currently
Executive Chair of the National Council on Climate Change (DNPI), to get first hand information about
the current national efforts in coping with climate change issue.
Mr Witoelar shared his views on the current status of Indonesia climate change issues and on his
expectations of Indonesian climate change, global current and future mitigation and adaptation efforts.

SOF

Investment-Innovation-Productivity

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19

• INTERVIEW

• INTERVIEW

In the global perspective, I believe
Indonesia has shown a strong
commitment to coping with global
warming and climate change
issues by planning to lower GHG
emissions up to 41% by 2020 based
on international collaboration, as
President SBY had announced it to
the world about two years ago.

SOF

What are the main concerns in coping with climate
change issues in Indonesia and the challenges
that the government is currently facing?

archipelago located in the tropics global
climate change, but of course we can not
deal with these issues unilaterally.

The Government is greatly concerned
about global climate change issues,
while at the same time it has to meet the
challenges of building a strong national
economy amidst the fast depletion of
global natural resources and a growing
population. At the national level, I
have great concern about the slow and
meager responses of relevant, if not
all, government agencies to the national
efforts in mitigating and adapting into the
negative impact of climate change, while
the impacts are evidently experienced by
Indonesia today.

The whole world should share a common
vision and responsibilities in saving
the planet, though each country has its
own responsibility based on its specific
conditions and capacity.

In my view the government needs even
stronger political will to deal with the
looming danger of climate change, and
to do what it takes to prevent serious
devastation to our country and protect
our people from the negative impacts
to development and sustainability. We
should realize that being the world largest

I think most of us are beginning to
realize and feel the real impact of global
climate change in our daily life in our
country. Many climate anomalies that
triggered more severe natural disasters
have happened globally , and Indonesia
has its share in experiencing them.

In the global perspective, I believe
Indonesia has shown a strong commitment
to coping with global warming and climate
change issues by planning to lower GHG
emissions up to 41% by 2020 through
international collaboration, as President
SBY had announced to the world about
two years ago.

The increasing prevalence of natural

Investment-Innovation-Productivity

disasters and their severity could disrupt
or at least influence (negatively) the
economies of many countries including
Indonesia.
What are, in your view, the government’s
achievements in terms of policies and
implementation to deal with climate change?
As I said, as a developing country,
Indonesia has put itself as the forefront
of global efforts by commuting to
reduce GHG emission at relatively
significant level. The world applauded this
commitment as not so many countries,
including highly industrialized ones,
are making such clear and significant
commitments (in that respect).
Indonesia’s significant target to reduce
GHG5 generally receives positive
responses from some industrialized
countries and the UN bodies. This resulte
in various initiatives (proposed), including
plans associated with REDD+ programs
to deal with climate change mitigation and
adaptation activities in Indonesia. Such

initiatives, include the recently (2010)
established partnership with Norwegian
government to deal with deforestations
issues. I hope more of those initiatives will
be established and properly implemented
in the near future. Other achievements
like the establishment of RAN-GRK
last year seems to go unnoticed by the
general public, perhaps because the
media have not paid great attention to it.
I must admit, however, that establishing
a plan is one thing, but the effective
and consistent implementation of it is
another matter. What we are lacking
here is a comprehensive monitoring and
reporting system which could provide
the information to the public, about the
up to date status of the national efforts
in combating climate change. Such data
should also be translated into plain
language to make it comprehensible by
the general public.
What are your views about the current responses
of Indonesia’s industrial sector toward greening
the country’s economy?

Industry plays a strategic role in
transforming Indonesia’s economy
towards “a green economy”, by
embedding sustainability thinking into
their business strategy. Not only industry
but all the economic sectors must
contribute to building the fundamentals
of green economy. Particularly, industry
should strive for producing truly “green”
products in the sense of making it part
of the greater efforts to make the whole
national economy sustainable, and resilient
against negative impacts of climate
change. From my perspective, to make
the transformation into green economy,
the government should be more serious
and effective in dealing with the climate
change mitigation and adaptation. Policies
and regulations necessary to govern these
issues must be effective and consistent to
ensure that all stakeholders adhere to it.
The regulations must also clearly stipulate
incentives and disincentives to stimulate
the public initiatives to produce positive
impacts.

Investment-Innovation-Productivity

It seems that there is currently some public
skepticism about Indonesia’s serious commitment
in coping with climate change in the long run.
What are your expectations of the future
governments in this respect?
I believe it is high time for Indonesia to
have a Law on Climate Change to provide
a stronger legal umbrella for all the
policies and regulations needed to cope
with the issue. I sincerely hope that the
next year’s general elections will produce
strong leaders in government and longterm thinking statesman, like legislators
at the House of Representatives (DPR)
who will work hard to tackle the pressing
issues related to global warming and
climate change. Therefore I hope that the
law will be produced in the near future.
I know that some major political parties
have expressed their intentions to deal
with climate change issues more seriously
in the next administration. I believe that
the public or constituents are supportive
to this idea. As I said, to make our country
and society sustainable, there needs to be
20
a clear vision, strategy and long-term plan
that must be consistently implemented. I
hope the next government will better
realize this and act upon accordingly to
get things done properly.
You mentioned two big challenges related to the
agreement to lower emission before and after.
Second, by 2015 the ASEAN will turn into
One Community Nation. How should Indonesia
respond to the targets and challenges?
Indonesia should have integrated
economic and social policies both locally
and globally. In addition, Indonesia
should intensify discussions globally to
make the policies for easy implementation

21

• INTERVIEW

by the public in the perspective as stated
in the climate change convention that
was ratified in 1994. These are long-term
policies.
Indonesia is approaching a critical time
with political transition in 2014 and pre
2020 and beyond 2020 climate change
negotiations.
The green economy and associated
investments are also a matter of
institutional
transformation.
This
transformation
presents
a
huge
opportunity for developing countries to
maintain high economy growth while
keeping GHG emissions low. It poses

enormous challenges in terms of a
long term vision, leadership, and strong
engagements among sectors.
In addition, the upcoming ASEAN
Integration into One Community Nation
2015 will also lead to the same direction.
This requires the transformation of green
economy ideas into viably sustainable and
feasible actions that encompass policies
and direct practical actions.
You mentioned earlier that Indonesia needs to
have a strong Law on Climate Change. Could
you elaborate why do you think that such law
is needed?

Indonesia is approaching a critical time with political
transition in 2014 and pre 2020 and beyond 2020 climate
change negotiations.

As I said, we need a stronger legal
basis to implement policies on climate
change, therefore DNPI currently sees
the urgency of such law to ensure that
all efforts related to mitigation of and
adaption to climate change imperatives
are legally protected.
A number of developed countries
including the EU, the UK and, New
Zealand, have already enacted laws
on climate change. Some developing
countries like China, Colombia and the
Philippines also have such laws.
With that law, these countries could
support the creation rigorous and legally
based efforts to tackle climate change to
protect national resources.
Indonesia should also have similar laws
to better protect its resources for future
generations. In addition, the law would
also provide a strong legal basis for the
government to transform the economy
into sustainable and resilient economy.
Climate change is one of the most
important triggers for conducting an
economic transformation.
You wrote on recent paper “Study on Population
Dynamics and the Human Dimensions of
Climate Change,” about the importance of
transforming the economy into green (sustainable)
economy, and to do this, the government should
make climate change issues to be part of the
national development policies. Would you share
about it to our readers?
DNPI has identified various options to

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• INTERVIEW

reduce GHG emissions, including the
need to implement serious and systematic
drives toward energy efficiency in all
sectors. For example, energy efficiency in
urban areas through better evidence-based
spatial planning and allied interventions
could produce enormous results in
reducing the national energy consumption
and increasing conservation.
DNPI also sees the need for revitalizing
the national family planning program
to make a major contribution to GHG
mitigations efforts over the next 40 years
and beyond. It is also important to invest
heavily in the education of today’s youth
as an essential component of a successful
transformation into a green, sustainable
economy.
In my opinion, much can be done to
promote the benefits of green choices
and sustainable lifestyles to help mitigate
the current steep rise in the country’s
carbon intensity, especially among the
youth.
How do you think DNPI could help the
government stimulate the public and private
sectors to engage activities in climate change
mitigation and adaptation?
The government and the private sector
face common challenges in combating
climate change to provide the necessary
and conducive conditions for sustainable
growth. Only by productive cooperation
can we achieve our common goals.
By engaging in cooperation with the

Investment-Innovation-Productivity

private sector DNPI can help promote
the investments and innovations that are
essential elements in driving the economy
towards
sustainable
development.
Combining these two elements will create
a new market for ‘green’ goods, services
and employment.
Significant investment is needed to ensure
the institutional transformation toward
maintaining a high economic growth
which at the same time lowering GHG
emission. Innovation plays a critical role
in finding new ways toward sustainable
production and consumption.
Through cooperation with public
and private sectors at national and
international level involving experts and
practitioners from diverse areas and
Industries, DNPI can maintain frank
dialogue, share knowledge, experiences
and best practices on various issues
related to climate change impacts,
mitigation and adaptation.
Currently DNPI maintains a partnership
with Matsushita Gobel Foundation, the
Embassy of Japan in Indonesia and the
Japan International Cooperation Agency
(JICA) to engage in various activities
related to climate change mitigation and
adaption, including capacity building
activities.
DNPI greatly appreciates Matsushita
Gobel Foundation, the Embassy of Japan
to Indonesia and JICA and thankful for
their consistent and continuous support
for this cause.•
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• INTERVIEW

With determination to do everything for the development of the industry, Rachmat Gobel, CEO
Panasonic Gobel Indonesia Group has a good record in the survival of electronic manufacturing
Indonesia. His success lies in combination of resilience and discipline.
Even his big concerns are mainly focused on the development of other industries in Indonesia. His
dedication to brought him recognition, in 2011 he was awarded the prestigious Asian Productivity
Organization Regional Award for contributions to improving productivity in Indonesia’s industrial
sector from the Asian Productivity Organization, Tokyo, Japan.
He is also one of the private sector leaders in introducing sustainable development through Green
Productivity forging strategic partnerships with the rest of Asia and the Pacific.
He identified the urgent need of the industry to help strengthen the country’s energy resilience while
coping with prevailing environment issues in the industrial sector. His significant work to improve
Indonesia’s industrial sector and extensive promotion of new and renewable energy was rewarded
with an appointment as Chairman of the Indonesian Renewable Energy Society (METI)
Rachmat Gobel shares his views on energy and environmental issues to Green Magazine at his office
in Jakarta.

Indonesia is facing crucial problems in the energy
and environmental sectors. How have Japanese
firms including PT Panasonic Indonesia coped
with the prevailing problems in the two issues’?

MAS

Rachmat Gobel

CEO PANASONIC GOBEL INDONESIA GROUP

Master Helmsman’s Green
Energy Concerns

Japanese firms are mostly aware of the
importance of anticipating the energy
crisis and moving forwards toward the
achievement of energy resilience. Energy
issues are inseparable with environmental
issues especially related to climate
change.
There has been an increasing urgency
in the industrial sector to develop
environmentally-friendly technology.
As part of the Japanese government’s
policy, Panasonic Indonesia has made a
strong commitment to be at the forefront
as a green and innovation company.
We see manufacturers in Japan as risk
takers for the sake of becoming green
and innovation companies.
Japanese manufacturers, like those in
other parts of the world, actually still feel
the pinch of economic slowdown.
However, the industrial firms in Japan
and a number of Japanese companies in
Indonesia are risk takers, becoming green
and innovative companies with large

Investment-Innovation-Productivity

investments to ‘transform the industry
into a green industry’.
Companies there in Japan as well as
Panasonic Indonesia, have gone through
various changes for innovation and
further turned into green companies in
all production lines.
There have been wide range of changes
especially in production. Our products
are made with the use of environmentfriendly raw materials. Our factories have
also improved energy process to reduce
gas emission.
Secondly, we have strived to improve
productivity and efficiency.
Thirdly, we create good quality products.
Fourthly, the company provides better
health services for our employees.
Fifthly, the company’s human resources
are morally better with high responsibility
in managing natural resources.
The company has already taken into
account, efficiency in the use of energy,
ranging from hydro, oil, gas to electricity.
To that end, we set up rules of the games
for all of us in Panasonic to go ahead
together for efficiency as the company’s

Investment-Innovation-Productivity

movement and with strong corporate
culture for the benefit of all including
other industries. In turn it will also
strengthen our competitiveness in terms
of cost efficiency and others.
Panasonic is as also a company with strong
leadership and with a great commitment
to preserve the environment. We are
not only a company for the sake of
employment as it may cause new
problems.
Employment by the company without
having
strong commitment and
responsibilities has no added value. Our
human resources may fail to achieve
improvements in all aspects for the
company and the nation.
We encourage our employees not to only
think about their own benefits but also
for the success of all in the company and
contribution for the nation.
Industrial firms in Indonesia should
play bigger role to preserve the
environment starting from improving
their industrial waste treatment facilities.
Otherwise, bad environment within and
outside companies’ premises will affect
employees’ health and productivity.
We should have better rules of the games
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25

• INTERVIEW

• INTERVIEW

The company has
already taken into
account of efficiency
in the use of energy,
ranging from hydro, oil,
gas to electricity.

MAS

to make all stakeholders in the industrial
sector help the government deal with
environmental
problems
including
climate change.
Environmental issues and connectivity among the
ASEAN members countries have come to the
surface in recent ASEAN and APEC summit
forums. How do you see the benefits of Indonesia
by participating in the forums especially in terms
of improving productivity, competiveness and
concerted effort to cope with climate change?
Certainly Indonesia has taken many
benefits from the ASEAN and APEC
Summit forums. Indonesia and other
members have agreed to accelerate
physical, institutional, and people-topeople connectivity.

The industrial sector benefits economically
and environmentally from greener power
policy.
We from the industrial sector can help
the government cope with frequent and
more intense extreme weather events
due to climate change caused by carbon
emissions.
Indonesia as part of Southeast Asia
with its rapid economic and population
growth should play an important role in
the global solution and make low carbon
emissions achievable.

For sure, connectivity can reduce
production and transportation costs,
strengthening regional supply chains as
well. For the industry cost efficiency is a
crucial factor to survive.

There have been calls from global
movements for reducing the dependency
on fossil fuels by increasing the
contribution of renewable energies. We
in Indonesia have tried to intensify the
use of new and renewable energy for
outlying or remote regions to operate
renewable energy based power plants
using solar or wind energy.

We are also encouraged to fully utilize
renewable energy for the benefits of all
the ASEAN member countries.

Indonesia is endowed with rich natural
resources to become a leading player
for clean, renewable energies in the

Investment-Innovation-Productivity

South Asia. Renewable energies are more
competitive than coal. We should fully
utilize indigenous local resources and
create more employment.
With the use of more renewables,
Indonesia has an economic advantage.
The industry as a partner of the
government will also offer solutions, not
become a burden. We, the industry can
help the country to reduce dependence
on fossil fuels like oil and coal.
To that end, we keep on developing
environment-friendly technology for our
manufactures. We also keep on developing
recycling technology within the company
and encourage similar concerns to other
industries to do likewise.
It is time for Indonesia to gradually switch
to the use of renewable energy sources.
However, we still face bureaucratic
constraints.
What is the Role of METI in proposing
regulation to the government?
Indonesia has large potential of new and
renewable energy such as wind, solar,

hydro and geothermal. Indonesia is home
to around 40 percent of the world’s
geothermal energy reserves.
Indonesia also has up to 75,500 megawatts
of estimated hydropower resources and
generates 4.80 kWh per m2 per day in
solar power potential.
With the big potential of new and
renewable energy, the Indonesian
government set targets to generate 6.7
gigawatts of installed renewable energy
capacity by 2025.
However, Indonesia’s transition towards
renewable is not smooth as expected to
meet this target. This underperformance
is due to the insufficient extent of
the government’s effort to provide
incentives to investors wishing to venture
to the country’s renewable resources. It is
related to a certain extent with a lack of
awareness.
Apparently the government’s improved
political will is needed to reap benefits
from the country’s renewable energy
potential.

The government must have a better
understanding of the importance of
renewable energy and ready to shift its
mindset away from its current focus on
fossil energy.
Do you see the need for Indonesia to have
more regulations for energy resilience and
environment?
There have been efforts to issue more
regulations in addition to a number of
regulations on energy and environment
already in force.
However we should not only make
regulations to blame someone only,
but more importantly we must keep
on socializing the importance of the
regulations and its implementation to the
public.
It is the role of the industrial sector to
help the government manage energy and
the environment. Players in the industry
should be more active in its cooperation
with the government. The industry a
partner for the government especially in
energy resilience and the environmental

Investment-Innovation-Productivity

preservation among others by promoting
green industry concepts.
The industry is also developing recycling
technology to significantly reduce
industrial wastes.
Are there any expectations for the future role
of the industry in Indonesia and in the global
context?
Indonesia has the potential to develop
strategic industries in the fields of
renewable energy and energy efficiency
technologies. METI sees the need to
extensively develop research on new and
renewable energy in Indonesia.
Hopefully, the encouraging development
in the field will make renewable energy
more financially viable.
The government and the industry, needs
the introduction and application of more
consistent policies within the real sector
and greater collaboration with the foreign
countries in the energy sector. There
should be more bilateral cooperation in
developing green energy.•
26

Yoshinori Katori

27

• INTERVIEW

• INTERVIEW

Ambassador of Japan to Indonesia

Joint Crediting
Mechanism (JCM)

A New Initiative Promoted by Japan
Below is an article by HE Yoshinori Katori, the Ambassador
of Japan to Indonesia.
First of all, I would like to extend my heartfelt congratulations
on introducing the first edition of this magazine by Indonesian
National Council on Climate Change (DNPI). I am convinced that
this magazine will contribute to raising public awareness on climate
change problems and provide useful insights on how to cope with
the challenges associated with it.
I am witnessing significant progress in developing climate change
policies in Indonesia. The Government of Indonesia has developed
the National Action Plan for GHG Emission Reduction (RANGRK) by setting a voluntary target of 26% emission reduction from
BAU to be achieved by 2020 (or 41% with international assistance).
The government is currently also embarking on a strategic project
aiming to establishing the country’s GHG Inventory.

DOC. JAPAN EMBASSY

Yoshinori Katori (left) and his Indonesian counterpart Rizal Lukman attending joint press
release upon the completion of signing of JCM bilateral document between Indonesia and
Japan (Aug 30, 2013)

Global actions for combating climate change and promoting a low carbon
society are vital to evade great catastrophic impacts to human civilization on
this planet. Japan is introducing a new mechanism, Joint Crediting Mechanism
(JCM), in order to promote development of low carbon society. This new
mechanism is expected to be of useful means, as are other credit schemes like
CDM, to achieve the ultimate goals of global climate change mitigation.

Investment-Innovation-Productivity

Along with these efforts, it is important to explore ways to implement
concrete activities on the ground towards achieving the objectives
of sustainable development (the “green growth”), particularly by
mobilizing new technology and securing the necessary funds from
the private sector and other national and international sources.
This strategy was one of the main subjects discussed in the Second
“East Asia Low Carbon Growth Partnership Dialogue” held in
Tokyo in May this year.
And for the purposes of disseminating and promoting low
carbon technologies the Government of Japan has proposed the
establishment of “Joint Crediting Mechanism (JCM)”. It is our
great pleasure to announce that Japan signed a bilateral document
with Indonesia on the establishment of JCM on August 26, 2013.
Similar documents have also been agreed upon so far with seven
other countries, i.e. Mongolia, Bangladesh, Ethiopia, Kenya,
Maldives, Viet Nam, and Laos. JCM is one of the measures to
help facilitate green investment, and boost innovation as well as
productivity. Therefore, I’m particularly pleased that GREEN
magazine has chosen JCM as a main topic in its first edition.

What is JCM?
In order to effectively address the issues of climate change, it is
necessary to achieve low-carbon growth at a global scale through
mobilization of green (low carbon) technologies and finance
which enables expansion of markets for green products and
services. These factors are crucial to accelerate the development of
renewable energy; build more efficient power generation systems;
produce various low carbon products like energy efficient home
electronics, low and emission-free vehicles and other low carbon
products; and to deploy energy-efficient manufacturing processes.
JCM is a new scheme that Japan is currently promoting in order
to help support various projects using low carbon technologies,
develop low carbon products and services as well as implement
carbon mitigation actions, which, overall, is expected to contribute
to sustainable development in developing countries. From Japan’s
perspectives, the GHG emission reductions achieved by the
JCM in partner countries will help Japan to achieve its emission
reduction target. The bilateral JCM will stimulate and boost the
transfer of low carbon technologies and improve mitigation
actions faster and in more flexible way according to the particular
condition of the partner countries. I would like to stress that the
JCM will be implemented to ensure transparency, credibility as well
as environmental integrity. Chart 1 shows how the JCM works.

Why JCM?
The Clean Development Mechanism (CDM) has been serving as an
incentive to mobilize private investment associated with low carbon
development. However, the mechanism is also considered difficult
and cumbersome to implement, because of the complex and long
process necessary to get the approval of CDM administrators as
well as the requirement for “additionality”. As a result, CDM is
not necessarily considered as serving efficiently for those countries
that require it most. To mitigate climate change, it is imperative

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29

• INTERVIEW

that GHG emission reduction is implemented by all countries in
the world. Therefore, it is of utmost importance to create a new
mechanism that can complement CDM in order to achieve their
goals.

both governments, plays a significant role in administering the
mechanism. The JC develops rules and guidelines, approves
the proposed methodologies, designates the third-party entities
(TPEs), registers JCM projects, and finally decides the amount of
credits to be issued. The first JC meeting for Indonesia was held in
October 2013 in Jakarta.

How does JCM operate?

• INTERVIEW

TPE is supposed to validate the proposed projects and verify the
amount of GHG emission reductions or removals. The role of
each government is to issue the credits to its registry, based on the
notifications from the Joint Committee.

The diagrams (chart 2, 3) show the basic concept of the operation
of JCM, while some details of its operation can vary depending
on the conditions of the partner countries. Under JCM, the
Joint Committee (JC), which consists of representatives from

Photo: 1st Joint Committee between
Indonesia and Japan (Oct 16-17, 2013)

Japan
Government
• Issuance of credits

•Request
issuance
of credits

Project Participants
• Implementation &
monitoring of projects

Joint Committee

•Notifies
(Secretariat)
registration
of projects • Develops/revises the
rules, guidelines and
methodologies
•Reports
• Registers projects
issuance of • Discusses the
credits
implementation of JCM

Host Country
•Notifies
registration
of projects
•Reports
issuance of
credits

Government
• Issuance of credits
DOC. JAPAN EMBASSY

(Subject to further consideration and discussion with host countries)

Conduct policy consultations

•Request registration
of projects
•Submit PDD
/monitoring
report
Third party entities
•Inform
results of
validation
/verification

• Validate projects
• Verify amount of
GHG emission
reductions or
removals

chart 2. Basic scheme of the JCM

•Request
registration
of projects
•Submit PDD
/monitoring
report
•Inform
results of
validation
/verification

Interested parties can find related
information including rules and guidelines
adopted by Joint Committee on “New
Market Mechanism Platform” website
http://www.mmechanisms.org/e/initiatives/
index.html

•Request
issuance
of credits

Project Participants
• Implementation &
monitoring of projects

What are the features of the JCM?
JCM is basically designed using CDM as
its main reference, but it is intended to be
more simple, practical and flexible as you can
compare in chart 4. For example, a JCM project
is validated based on eligibility criteria, whereas
in CDM case a project must be assessed
concerning its additionality. The criteria are
defined in the methodology approved by the
Joint Committee, and describe requirements
for e.g. energy efficiency of the products to
be used. By using the eligibility criteria, we can
simplify the validation process and reduce the
risks of rejection of the projects. Besides, in
order to reduce monitoring burden, default
values can be widely used in a conservative
manner.
JCM starts as a non-tradable credit type
mechanism. Hence, credits cannot be traded
internationally for the time being. However,
the governments of Japan and Indonesia will
closely monitor and discuss the mechanism
to move into transition to a tradable credit
mechanism at the earliest possible time,
taking into account the overall situations
and experience of JCM implementation as it
progresses.

Projects qualified for JCM
In the case of CDM, projects in some sectors
such as energy-saving home electronics and
highly efficient coal-fired power generation
are difficult to implement. JCM is expected to

Investment-Innovation-Productivity

Governance

JCM
- “de-centralized” structure
(Each Government, Joint
Committee)

CDM
-“centralized” structure
(CMP, CDM Executive Board)

Sector/project
Coverage

- Broader coverage

- Specific projects are difficult to
implement in practice
(e.g. USC coal-fired power generation)

Validation of
projects

- In addition to DOEs, ISO14065
certification bodies can conduct
- Checking whether a proposed
project fits eligibility criteria
which can be examined
objectively
- Spreadsheet are provided
- Default values can be used in
conservative manner when
monitored parameters are
limited.

- Only DOEs can conduct
- Assessment of additionality of each
proposed project against hypothetical
scenarios

- The entity which validated the
project can conduct verification
- Validation & verification can be
conducted simultaneously

- In principle, the entity which validated
the project can not conduct verification
- Validation & verification must be
conducted separately

Calculation of
Emission
Reductions

Verification of
projects

- Various formulas are listed
- Strict requirements for measurement of
parameters

chart 4. Key features of the JCM in comparison with the CDM

cover a broader scope of projects than
that of CDM. While JCM projects are
to be decided by the Joint Committee,
projects for energy-efficiency, renewable
energy and REDD+ are expected to
qualify for JCM in Indonesia.
We are now working to determine the
necessary rules and guidelines for a
smooth and efficient implementation of
the JCM between Indonesia and Japan.
Therefore, no project has been approved
yet under the JCM with Indonesia.
However, many Japanese companies
have been conducting feasibility studies
or pilot activities on potential JCM
projects with Indonesian partners.

Investment-Innovation-Productivity

Future Expectation
In Japan, there are a number of
companies that can contribute to
low carbon growth in Indonesia with
leading technologies. I am certain that
the implementation of the JCM will
contribute to more investment and
further dissemination of low carbon
technologies from Japan to Indonesia.
The JCM with Indonesia has just begun
and we still have much work to do. But
I am convinced that the JCM will lead
to win-win cooperation between our
two countries that will contribute to
the global strives for climate change
mitigation.•
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• FORUM GRUP DISCUSSIAN

Jusman Syafii Djamal

• INTERVIEW

chairperson of Matsushita Gobel Foundation (MGF)

Industries should
be the driving force

Trained in Aeronautical Design Technology, Jusman Syafii Djamal joined the National Team for the
Evaluation of Transportation Safety and Security in 2007. This has brought him to a position as Minister
for Transportation (2007 – 2009) in President Susilo Bambang Yudoyono’s first term Cabinet. His scientific
background led him to being named a member of the National Innovation Committee (KIN) by the
government in 2010. Jusman is currently the Chairperson of Matsushita Gobel Foundation (MGF) and
serving as a Chairman of the Board of Commissaries with P.T. Telkom. Indonesia.
On behalf of MGF, Jusman enthusiastically shared his views on climate change issues, green economy and
energy resilience.
He looked at Indonesia’s challenges in climate change issues and its impacts on the country’s current
and long-term socio-economic development. He shares the world scientific community’s views that global
warming caused by modern human activities is the real culprit of climate change. Climate change is real and
has to be dealt with seriously by the entire global community before it become irreversible and disastrous
to the planet and the human civilization.
In addition to climate change, Indonesia is also faced with the depletion of oil and other fossil-based
energy sources. Industries, therefore, are expected to use more environment–friendly energy.

Investment-Innovation-Productivity

SOF

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• INTERVIEW

• INTERVIEW

We as a nation need to
transform ourselves
into a green economy
with more innovation,
higher productivity and
achievements.

SOF

How do you see role of the industry in coping
with the challenges on environmental preservation
and energy resilience?
Industries, especially the energy intensive
ones, have been using a great deal of the
energy supply available on the planet.
Their productive activities have left
huge carbon prints causing damages to
the environment and global warming.
It is only natural that they must play
an important role in the country’s and
global efforts in curbing the excessive
CO2 emission to avert the global climate
catastrophe associated with climate
change.
Industries must be one of the driving
forces in the government’s efforts to
mitigate climate change. They should
position themselves as a partner to the
government in many respects to help
achieve the goals of the national climate
change mitigation programs. Industries’
involvement in the programs could be
in the area of environment preservation
and in the national endeavors to ensure
energy security and resilience
Industries’ business strategies and
operations must be aligned to the

national government’s programs of
green economy transformation to reap
the maximum benefits for the people
of Indonesia. Industries must nurture
innovations to improve low carbon
productivity. This will include using
more renewable energy to reduce CO2
emissions caused by burning fossil fuels.
The Agro industry sector should
undertake more intensive research and
innovation to improve food productivity
and enable national and global food
resilience, as global warming is seriously
disturbing global food productivity and
posing clean water supply challenges
in many part of the world, especially in
developing countries. Rapid urbanization
in developing countries also put pressure
on food productivity and clean water
supply systems, as more and more land are
being converted into housing and urban
facilities. All of these require industries to
realign their operating strategy to support
the national government‘s climate change
mitigation programs and undertakings.
What should the government accomplish by
the transformation into green economy?
One of

the important things the

Investment-Innovation-Productivity

government should do is to prevent
and protect the people from consuming
products and services, ether those
produced domestically or imported ones,
that are produced not in compliance with
green economy requirements. This could
be accomplished through strong policy
and effective regulations which ensure
all economic sectors’ compliance to the
green principles.
I believe that it is much better to serve
our national interests by filtering nongreen products produced or imported
using green criteria, rather than spending
tax-payers’ money for various measures
to protect environment and the people’s
health. Protection against the flow of nongreen products could be accomplished
through various non tariffs barriers to
prevent unwanted products entering the
domestic market. This kind of measure
may become the only option that the
national government could use in the
near future to protect national markets
against foreign products, as regional
economic integration is the clear trend of
the future. Regional integration treaties
compel national government to open
the country’s market by allowing free and

open market mechanisms to prevail.
Another aspect of domestic market
protections against the flow of non-green
products is imposing National Industrial
Standards to products and services traded
and distributed in the domestic market.
The government must ensure that the
products and services meet the national
standards.
But establishing such national standards
will take time and face great challenges
as Indonesian industrial system is still
overwhelmingly characterized by import
substitution.
The MGF is collaborating with JICA and
the DNPI to hold regular discussions and
workshops on climate change and other green

issues. What do you expects from such events to
help create public awareness on climate change
issues?
I find that holding regular discussions is
an excellent way to exchange knowledge,
experience and best practices among
stakeholders about climate change and
green economy. We invite participants
from various background and expertises
to share views and build up useful
networks to create common awareness
and understanding about climate change
and the compelling need to green
economy transformation.
Through the for a hope to narrow gaps
between (academic) knowledge about
climate change and green issues and

Investment-Innovation-Productivity

the need to get programs effectively
implemented on the ground, and hope
along the way to find best solutions and
benchmark in meeting the challenges.
We hope through our discussions,
that experts will share their scientific
findings and professional experience
to government and practioners and the
government will better explain its policies
and regulations to other stakeholders,
all aimed at improving solutions to
solve the common problems associated
with climate change. We also hope the
discussions will inspire participants to be
more committed to the cause of climate
change mitigation and have better impacts
in their respective capacity in meeting the
common challenges.•
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35

• INTERVIEW

• INTERVIEW

Atsushi Sasaki

Chief Representative of Japan International
Cooperation Agency (JICA)
DOC.JICA

JICA: Combating
Climate Change Needs
Involvement of All
Citizen

Investment-Innovation-Productivity

Climate change is already happening now. We can increasingly see, feel and experience it all over the
world. Experts say mitigation may be too late now as the window of opportunity for keeping the global
warming at acceptable levels is nearly closed, while the world community is failing to come to a real
consensus about how to tackle it. Mr Atsushi Sasaki, Chief Representative of Japan International
Cooperation Agency (JICA) to Indonesia, shared his opinion to GREEN about the common challenges
being faced by the world, particularly in what a country like Indonesia could do best to address climate
change.

In the perspective of a donor organization like
JICA, how do you see Indonesia’s challenges in
dealing with the climate change?
Firstly, I think that the international
community highly appreciates the
efforts being made by the government
of Indonesia in setting the target of
GHG emission reduction by 26 percent
on its own and up to 41 percent with
international assistance, both compared to
the state of BAU (business as usual). With

these efforts Indonesia is moving toward
greening its economy. But I understand
it is not an easy task to promote the green
economy while the country is making
significant economic growth that might
absorb a large amount of conventional
energy in the process. With such pace
of economic development, lifestyles are
focused on keeping up with the elements
of modernity, and that demands more
conventional energy use. I also understand

Investment-Innovation-Productivity

that it is not an easy task to cope with the
prevalent natural disasters in the country,
many of which can be directly associated
to climate change.
In my opinion, the government of
Indonesia needs not only to develop
policies and plans in dealing with the
problems, but also need to implement
them effectively and with adequate fiscal
support. In this respect, I observe that
the government of Indonesia has already
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37

• INTERVIEW

economic growth, job creation and green
development, we could use the good
example of national parks; some national
parks in Indonesia are working to preserve
the natural environment, providing added
value which enables them to promote
eco-tourism. In addition, Indonesia has
a large potential in developing renewable
energy such as geothermal and hydropower. The development of these
resources will contribute to not only
addressing climate change issues but
also promoting economic development
and employment through fostering local
industries and the sustainable supply of
power.

DOC.JICA

Indonesia’s forest and peat land area is the
one of the largest in the world, and Indonesia
possesses some largest renewable energy
sources in the world.

developed policies and plans, and the
issue now is how to implement them
seriously and consistently together with
all stakeholders.
How should Indonesia create conducive conditions
for the industrial sector to motivate them to do
what it is necessary to mitigate climate change?
Allow me to share Japan’s experience
in coping with the challenges to meet
its energy needs. After the oil crisis in
1973, Japan, with a very low energy selfsufficiency rate, started to consider more
seriously about how to use energy as
efficiently as possible. The government
of Japan engaged in dialogue with the
private sector, promoted energy saving
policies that resulted in the manufacturing
of energy efficient products with high
international competitiveness. Through
the implementation of the government
policies to combine restrictions with fiscal
incentives for energy efficient products
and processes, a high level of energy
efficiency has been realized in most of

Investment-Innovation-Productivity

industrial facilities as well as products
such as automobiles, home appliances,
etc. Taking Japan’s experience into
account, Indonesia might be advised to
develop and implement similar policies to
those of Japan based upon dialogue with
the private sector. The strong leadership
of high-level government officials is
essential; otherwise, the ministries and
agencies concerned may not easily agree
on setting policies as in many cases they
may have different opinions.
The industrial sector apparently plays an
important role in transforming the current
economy into a green one. Which industrial
sectors do you think should be involved to help
Indonesia optimize efforts in dealing with climate
change issues, while at the same time produce
added value to the economic growth, keep the
environment clean and help create more jobs?
To tackle the complex issue of climate
change, we need to involve all people; they
must have their own roles in addressing
the issue. When we think of balancing

There have been some anxieties among
national and international communities about
the continuity of efforts in GHG emission
reduction in the long-run, especially with the
imminent political transition from legislative and
presidential elections in 2014. What is your
opinion about it?
I believe that the importance of
addressing climate change issues is
well recognized and understood by all
Indonesian leaders, and that they know
what to do domestically as well as what
kind of role this country should play in
the international society.

• INTERVIEW

develop policies associated with climate
change mitigation and adaptation, and
providing assistance in implementing the
policies. In the context of clean energy
development, JICA is provides support
to improve the system of geothermal
power development as well as developing
advanced technology of bio-energy
applicable to Indonesia through the
practice of joint researches.
We realize that developing renewable
energy takes a relatively long time. In that
respect, JICA supports the development
of a high efficiency (super critical) coal
power plant, which enables the effective
use of abundant coal resources, and
the promotion of utilizing cutting-edge
technology such as carbon capture and
storage. These activities are expected to
help Indonesia realize green economy
with stable electricity supply and optimal
energy mix.
How do you see the role of mass media in
Indonesia to support the implementation of green
economy?
It is absolutely necessary to increase
people’s awareness of the environment
and climate change issues to promote

green economy, and of course the role of
mass media is indispensable. It will take a
long time to increase the awareness of the
people, but unfortunately the issues of
environment and climate change are not
always attractive subjects to be covered
by mass media. In this regard, those
who provide information to mass media
must do their best to make it attractive
to people; at the same time, taking into
account social significance, mass media
should be urged to cooperate with
sources of such relevant information.
What do you expect from Indonesia’s role in
global climate change mitigation?
Indonesia’s forest and peat land area is one
of the largest in the world, and Indonesia
possesses some of the largest renewable
energy sources in the world. With the
world’s fourth largest population as well
as its high economic growth rate recently,
it is no doubt that the core country in
ASEAN is Indonesia, whose policies
have impact significantly on the world.
I expect Indonesia to play a leading role
in addressing climate change issues, and
JICA will continue to work together with
people in Indonesia in a variety of sectors
related to climate change.•

There have been ideas among experts and
intellectuals about the imminent need of having
a national law on climate change in line with
the global context of mitigation of and adaption
to climate change. Do you support such an idea,
particularly in the Indonesian context?
In my opinion, it is more important that
the leaders are highly committed and
engage into serious actions to combat
climate change, and motivate all citizens
to support the actions at their own
capacity, rather than having a law or not.
Do you see an encouraging development in green
initiatives in Indonesia, and how do you think
JICA could do to support these?
We are happy to support and contribute
to Indonesia’s green initiatives. We are
doing this for example by supporting
the development of Mass Rapid
Transportation (MRT) systems in
Jakarta, the introduction of innovative
public transportation system and the
development of infrastructure with
cutting-edge technology. JICA is also
supporting various ministries within
the government of Indonesia to

DOC. JICA

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• INTERVIEW

• INTERVIEW

The Nusa Dua Commitment declared by the Indonesia Editor in Chief Forum ( IECF) on June 14, 2013,
at Nusa Dua, Bali, is to remind mass media in Indonesia on the importance of building a strong
Indonesia in all respects of a modern civilized state. The Forum produced nine commitments related
to the needs of addressing the environmental and energy issues properly and effectively.
IECF, established on July 19, 2012, represents almost all Indonesian Editor in Chief of Printed and
Electronic media, pledged support to the national efforts in preserving the environment, in maximizing
renewable energy development and deployment, and in energy conservation through energy efficiency
actions to achieve national security. All of these efforts should be consistently and effectively implemented
to foster national sustainable and equitable development .
By making the commitments, the Forum shows mass media’s serious concerns on the issues of climat
change mitigation an adaptation as well as on the imminent global energy crisis that could pose a serious
threat to the global sustainability.
The Forum also appreciates the initiatives taken by the National Council for Climate Change (DNPI) in
collaboration with Matsushita Gobel Foundation and Japan International Cooperation Agency (JICA)
to hold Focus Group Discussions on the issues of climate change and green economy and for inviting
the IECF to participate in the discussions.
At the Bali gathering, Nurjaman Mochtar, Chairman of IECF who is also the Editor in Chief of two
major TV channels, SCTV and Indosiar, shared his thoughts on those issues and on the strategic role of
mass media in publishing and providing ‘checked and balanced’ information concerning the progresses
of the national and global efforts in coping with the issues.

IST

Nurjaman Mochtar

Chairman of Indonesia Editor IN CHIEF Forum (FORUM PEMRED)

Mass Media Should Expand
Climate Change and Green
Economy COVERAGE
Investment-Innovation-Productivity

What are IECF standpoints in dealing with
the issue of climate change?
Our standpoint is clear that in coping
with this global issue, stakeholders need
to think and work together to solve
the problems . It is undeniable to all
of us that human activities are causing
environmental damages which lead to
global warming and climate change. We
are also witnessing strong indications
of the growing uncertainty in the global
climate pattern which triggers increasing
prevalence of serious natural disasters.
When we talk about green investment
we should see it not only as a measure

to avert the negative impacts of climate
change, but we must also see its
potentials of producing benefits for
sustainability. Therefore mass media
must endeavor to see all aspects of
measures taken by stakeholders, be it
government, private sector or nongovernment organizations.
Do you see that concrete steps have been already
taken to solving the problems?
Sure, I saw concrete steps that have
been taken by the government and other
stakeholders to address the issues of
climate change, though frankly I would
like to see more serious and consistent

Investment-Innovation-Productivity

measures be taken particularly by the
government to spur all stakeholders to
engage in climate change mitigation and
adaptations acttivities. The government
strategic plan stated in the RAN-GRK
must be implemented consistently
At the Bali gathering the Forum agreed
along with all related stakeholder to
mitigate the on-going damage to the
environment by taking the necessary
actions in our own capacity to remedy
such damages and to prevent such
damages from reoccurring.
Unfortunaely there are many concepts
and terminology used to discuss the
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41

• INTERVIEW

• INTERVIEW

I believe that in this
respect the mass media
should excersise their
role objectively and in
responsible ways in line
with the principles of press
freedom that we enjoy
today.

DOC. JICA

climate change issues that the general
public may not comprehend those
technical jargons, which preclude them
from understanding the whole matters.
Climate change is a multisectoral issue,
so we need to involve all relevant sectors
to find the solution to the problems.
It is the mass media’s primary role
and responsibility in diseminating the
information as reliably and as accurately
as possible to the public. The mass media
should strive to encourage the public
to take relevant actions which could
contribute to mitigating the impacts of
climate change

of the government efforts to mitigate
the the impacts of climate change. Mr.
Rachmat Gobel of Panasonic Indonesia
is among the ones who give full support
to green economy transformation. I
saw representatives of industrial sectors
actively participate in many discussions
at national and international forums
including the FGD initiated by DNPI,
Matsushita Gobel Foundation and JICA.
Again, in this respect I see that mass
media should play its genuine role in
informing the public about the strategic
role of industries in helping to solve the
climate change problems.

I believe that in this respect mass media
should excersise their role objectively
and in responsible ways in line with the
principles of press freedom that we enjoy
today thanks to the democratic system
that our country follows.

For example, the industry, particularly the
energy sector, should be more active in
making the country less dependent on
fossil fuels. But the government should
give industry ample opportunities and the
necessary incentives to drive the private
sector to developing healthy renewable
energy businesses. Other industries
should respond by improving their
energy efficiency measures and reduce
GHG emissions

How about the role of industrial sector to Green
Economy transformation?
We have spoken with many businessmen
in Indonesia about climate change,
and I believe that they are in support

I belive that one of the options the

Investment-Innovation-Productivity

government could take in providing
incentive to public and private sectors,
is to present awards to companies that
distinctly contribute to greening the
economy. Such awards are inspiring,
and educate other businesses to apply
the same principle. Mass media can help
herald such award winning companies
to stimulate others to follow the good
examples.
How do you respond to the view by some
environmentalists and green observers that Mass
Media is less interested in covering climate change
issues?
I think that the view is not entirely
correct. Though it should be admitted
that not all medias have given enough
space in their publication for discussing
the issues, generally mass media do not
refuse to cover climate change issues.
To improve and expand the coverage, I
think the sources also have to improve
the quality of their information to entice
the press to cover it in their publications.
In this respect I think the Nusa Dua
commitment is clear enough in its aim
to remedy the negative views about mass

media’s lack of interest in climate change
issues.

should respond to the climate issues, of
course within their respective capacity.

Besides, climate change issues may be
seen as less important by the Indonesian
press mainly because the news sources
fail to make it attractive for example, the
issues of green investment and renewable
energy. Nevertheless, on behalf of IECF,
I’d like to invite everybody who are
concerned about “green issues” to engage
the mass media to help dissiminate the
information to the public. We are always
open to discuss the issues with anyone
seriously concerned about it.

We hope that the current global trend
in the development clean technology
and green economy transformation will
continue well into the end of this century
to provide a solid ground for building low
carbon society and save the planet.

What do you think of the global initiatives in
addressing the climate change?
To address the problems of climate
change we need global commitment and
concrete supports by all members of the
global community. The green Investment
Program is one of the many strategic
steps to be taken by the global economy.
An appeal by concerned businessman
like Rachmat Gobel to scale up green
invesments is obviously a good example
of how members of the community

Do you have an important message to convey to
our readers?
We wish to see much clearer clear blue
prints of how the government will
address the climate change issues. We
also want see all government policies and
measures in this context be implemented
effectively and on consistent basis to
make real impacts to the causes.
In the next national congress that we
hope to hold in December 2013, IECF
will focus on the direction of the national
sustainable and equitable developments
toward celebrating the 100th anniversary
of Indonesia Independence. We expect to
cover the long term strategy for national
development, including the handling of
the climate change.•

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43

• GREEN INSIGHTS

• GREEN INSIGHTS

Advancing Low-emission,
Climate-resilient
Development Across Asia
Doddy S. Sukadri and Sandra Khananusit
Doddy Sukadri is a member of the Indonesia National Council on Climate Change
and is Co-Chair of the Asia Low Emission Development Strategies (LEDS) Partnership.
Sandra Khananusit serves as part of the Asia LEDS Partnership Secretariat.

SHUTTERSTOCK

Background
Asia, a continent consisting of 46 countries with a population
of more than 4.2 billion people, or about 60 percent of the
global total1, has experienced the fastest economic growth of
any region in the world in recent decades. With the exception
of several developed countries, notably Japan, Asian countries
are undergoing rapid economic growth and industrialization,
contributing to improved living standards and a better life for
millions. About fifty percent of Asians live in cities and over
the next 30 years Asian cities will grow by another 1.1 billion
people.2 However, characterized by exposed land areas—such
as islands, deltas, coastal regions, and steep slopes—and rapid
urbanization leading to high population densities, many Asian

1 “World population”, Wikipedia. http://en.wikipedia.org/wiki/World_population
2 “Accessing Asia: Air Pollution and Greenhouse Gas Emissions from Road Transport and Electricity”.http://cleanairinitiative.org/portal/node/11573.

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• GREEN INSIGHTS

To avoid the worst impacts of climate
change, such as more extreme
weather, reduced agricultural
productivity, and rising sea levels,
GHG emissions must be cut in half
by 2050. Yet they are expected to
double in that time frame without
concerted global action.
Source: International Energy Agency,
Tracking Clean Energy Progress,
Energy Technology

• GREEN INSIGHTS

What is the goal of the Asia
LEDS Partnership?
To advance the development
of country-led strategic plans to
promote economic growth while
reducing GHG emissions—without
causing unintended adverse
trade-offs to other environmental
pressures—in the Asia region.

SHUTTERSTOCK

What are Low Emission
Development Strategies,
or LEDS?
LEDS are country-led strategic
planning frameworks to promote
climate-resilient economic growth
while simultaneously reducing GHG
emissions over the long-term. LEDS
carries the same general meaning as
low-carbon development strategies,
low-emission climate-resilient
development strategies, and green
growth strategies. While LEDS
focus on reducing GHG emissions,
effective LEDS frameworks should
work to ensure that climate resilience
and adaptation are fully considered
in near- and long-term planning.

cities and countries are now more vulnerable to the impacts of climate change.
In many countries substantial gaps exist between the rich and the poor, with a
significant number of people still living in poverty. In addition, economic trends
have led to an increased demand for electricity and transportation. As a result, air
pollution is worsening and greenhouse gas (GHG) emissions are rising rapidly.

The Big Challenge: Closing the Emissions Gap
An Intergovernmental Panel on Climate Change special report indicated that
for more than a decade, the increasing rate of CO2 released into the atmosphere
has reached a point that is dangerous to both human well-being and continued
economic growth.3  
A continuing concern over an “emissions gap” was expressed at the 2012 United
Nations Climate Change Conference in Doha, when Parties of the United
Nations Framework Convention on Climate Change (UNFCCC) agreed on the
need for urgent action “…towards the deep reduction in global greenhouse gas emissions
to hold the increase in global average temperature below 2°C above pre-industrial levels and to
attain a global peaking of global greenhouse gas emissions as soon as possible.”4
At the 2013 UNFCCC Bonn Climate Change Conference in June, Parties
continued to discuss how to close the emission gap. At the climate change
workshop organized by UNFCCC, Ron Benioff, Director of the Low Emission
Development Strategies (LEDS) Global Partnership, addressed this issue with
his presentation “LEDS Global Partnership: Advancing Climate-Resilient Low-

3 Carbon Dioxide Capture and Storage. Intergovernmental Panel on Climate Change (IPCC), 2005. 
4 United Nations Framework Convention on Climate Change. Ad Hoc Working Group on Long-term
Cooperative Action under the Convention. Fifteenth session, part two, Doha, 27 November 2012. http://
www3.unog.ch/dohaclimatechange/sites/default/files/FCCC_AWGLCA_2012_L.0004_ENG.pdf

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Emission Development around the World”.5 He shared
experiences over the past two years working with 116 countries
on how LEDS could help countries decouple economic growth
from emissions and resource use. He presented examples on
how LEDS could be a viable path forward, supporting economic
growth by creating new jobs, fostering sustainable production,
and creating new green businesses, while at the same time
reducing carbon emissions and reducing poverty.
Developing Asian countries face a challenge of achieving
sustainable economic development and improving living
standards, while simultaneously reducing the rate of growth in
GHG emissions. Low-carbon, climate-resilient development,
commonly described as “green growth”, is viewed as the most
effective means of meeting both objectives. Low emission
development strategies provide strategic planning, analytical, and
policy processes to promote economic growth while achieving
significant, long-term emission reductions in key sectors.

The Asia LEDS Partnership
The LEDS Global Partnership encompasses three regional
platforms—in Asia, Latin America, and Africa—all of which aim
to strengthen and support capacities, learning, and coordination
of LEDS and green growth activities at the country, regional,
and global levels. The Asia LEDS Partnership is the largest
5 United Nations Framework Convention on Climate Change. Ad Hoc Working
Group on the Durban Platform for Enhanced Action. Second session (ADP 2),
Bonn, Germany, 29 April – 3 May 2013. Workshop on Low-emission Development
Opportunities, Tuesday, 30 April, 2013. http://unfccc.int/files/bodies/awg/application/pdf/adp2_workshop2_leds_30042013.pdf

regional platform of the LEDS Global Partnership in terms of
its membership.
The Asia LEDS Partnership was launched in September 2012 at
the first Asia LEDS Forum in Bangkok, Thailand, which convened
more than 170 representatives from 17 Asian governments,
regional and international development organizations, nongovernmental organizations (NGO), businesses, and others
active in LEDS in Asia. At the Forum, participants helped
to catalogue progress, prioritize regional needs, and identify
collaborative activities to achieve a vision of Asia as a region
of robust economic progress and low GHG emissions, with
countries adopting and implementing LEDS and green growth
practices across all sectors. Currently, representatives from
over a dozen Asian countries are actively engaged, as well as
numerous international partners and NGOs.
The objectives of the Asia LEDS Partnership are four-fold:
(1) to facilitate enhanced collaboration among those actively
engaged in LEDS in the region, including working to maximize
results while minimizing duplication; (2) to identify and
disseminate tools, models, approaches, and best practices in
priority LEDS topics to enable application across the region; (3)
to foster capacity building of practitioners to make Asia a leader
in designing and implementing LEDS and green growth; and
(4) to strengthen support for LEDS across Asia by catalyzing
leaders of change and raising awareness about the benefits and
methods of promoting LEDS.
One of the primary mechanisms to achieve these objectives is
regional peer-to-peer exchange on experiences and lessons in
fostering LEDS. Asian countries are implementing a wide variety
of policies and initiatives that support low-emission growth, and

Investment-Innovation-Productivity
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Master Helmsman's Concerns on Green Energy Investment-Innovation-Productivity
Master Helmsman's Concerns on Green Energy Investment-Innovation-Productivity
Master Helmsman's Concerns on Green Energy Investment-Innovation-Productivity
Master Helmsman's Concerns on Green Energy Investment-Innovation-Productivity
Master Helmsman's Concerns on Green Energy Investment-Innovation-Productivity
Master Helmsman's Concerns on Green Energy Investment-Innovation-Productivity
Master Helmsman's Concerns on Green Energy Investment-Innovation-Productivity
Master Helmsman's Concerns on Green Energy Investment-Innovation-Productivity
Master Helmsman's Concerns on Green Energy Investment-Innovation-Productivity
Master Helmsman's Concerns on Green Energy Investment-Innovation-Productivity

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Master Helmsman's Concerns on Green Energy Investment-Innovation-Productivity

  • 1. 1 • FORUM GRUP DISCUSSIAN VOLUME I/ 2013 Investment-Innovation-Productivity Rachmat Witoelar PRESIDENT’S SPECIAL ENVOY FOR CLIMATE CHANGE/ EXECUTIVE CHAIR OF THE NATIONAL COUNCIL ON CLIMATE CHANGE (DNPI) Indonesia is approaching a critical time with political transition in 2014 and pre 2020 and beyond 2020 climate change negotiations. 64 GREEN INNOVATION Increasing Awareness and Initiatives in Green Building Green Pathways for The Future Indonesia Rachmat Gobel CEO OF PANASONIC GOBEL GROUP Master Helmsman’s Concerns on Green Energy Investment-Innovation-Productivity
  • 2. 2 • FORUM GRUP DISCUSSIAN 3 • FORUM GRUP DISCUSSIAN The major demographic changes in Indonesia are (i) rapid urbanization, which may result in 65 percent of the population living in urban areas by 2050; (ii) population growth, which will continue for several decades at least, but at a progressively slower rate; (iii) changing age structure, which in recent decades has produced a growing bulge in the working ages but in future will lead to a growing proportion of elderly; and (iv) the changing socioeconomic composition of the population with a steadily growing “middle class.” These changes need to be taken into account in constructing business as usual scenarios and in developing mitigation policies (Population Dynamics and Human Dimension of Climate Change Indonesia, 2012) Investment-Innovation-Productivity Investment-Innovation-Productivity
  • 3. 4 5 • EDITORIAL NOTES • EDITORIAL NOTES Green Transformation: INVEST, INNOVATE AND BE PRODUCTIVE Greetings and a warm welcome to our very first issue of Green Investment, Innovation and Productivity Magazine! Over the past two years we, the Green Investment Innovation and Productivity (GIIP) Initiatives, have been providing a host of inspiring and insightful ideas, knowledge as well as lesson learnt from policy makers, business entities and practitioners in realizing green actions on the ground. “Green Economy Pathway of The Future Indonesia” is a relevant and contextual issue for Indonesia for a couple of reasons: firstly, we are really concerned about the future direction of government policies as we are approaching a political transition in 2014. The certainty and sustainaibility of the future direction as well as a strong institutional foundation will ensure long-term commitment to engage in the green economy. Secondly, looking ahead at global and regional economy dynamics such as the climate change regime and the upcoming ASEAN integration into One Community Nation in 2015, we encourage the government to prepare relevant policies and regulations to that end. Thirdly, looking back on the most recent economic challenges, green economy direction will also create a wide range of opportunities in creating new jobs with high values. Therefore, putting green jobs in the dialogue will contribute to a better and healthy Indonesian environment in the future. This edition outlines two important issues: energy efficiency and conservation, and sustainable landscape management. Energy is one of the most important aspects for human beings in daily activities. We use energy everyday for transportation, heating and cooling rooms, lighting, and others. However, our primary source of energy through burning fossil fuels is limited. For that reason, it is important for individuals, companies, and entire communities to start reducing energy consumption for daily use. Once we reduce our energy consumption, we also support the government program to reduce GHG emissions. Energy conservation and efficiency are some of the many mitigation actions to reduce GHG emissions. Energy conservation includes any human behavior that can result in less energy consumption. In addition, energy efficiency involves technologies that use less energy to perform the same function. Energy conservation and efficiency can also contribute to greater national security by reducing demand for foreign energy resources. Therefore, a commitment is needed from all stakeholders including government, private sectors, NGOs, and others. Sustainable landscape management is a concept/practice that elaborates environmental, economy, and society aspects in an integrated manner. The implementation of sustainable landscape management can protect the natural resources, and provide benefits to humans. In addition, sustainable management is designed to be both attractive and in balance with the local climate and environment. Several benefits from sustainable landscape management are carbon sequestration, clean air and water, habitat restoration, and increase energy efficiency. The sustainable landscape management needs to look at different scenarios such as policy, engineering, finance, and engagement. However, its implementation could face several barriers in Indonesia such as governance, economic, and social challenges. To solve the barriers we need commitments from all key stakeholders, to translate the concept into commitments that are suitable to the current condition. We couldn’t be more excited to have reached this point. Please take some time to get to know the outline of our magazine. You will notice the five categories: green pathways, green innovations, green champions, green insights, and facts and figures. Within each category, there are articles for you to enjoy. We are honored to share the work of so many committed and thoughtful people. We look forward to our reader’s responses. Feedback may be chanelled on our website, www. greeninvestmentindonesia.net We’ll be following these topics. If you come across interesting new materials, let us know. We will include your case study in an upcoming issues of GIIP Magazine. We appreciate your support and are so happy to have you as a reader of GIIP Magazine. With warmest thanks, Farhan Helmy, Editor in Chief ISTIMEWA Investment-Innovation-Productivity Investment-Innovation-Productivity
  • 4. 6 7 • CONTENTS Contents • CONTENTS Green Insights 42 Interview Advancing Low-emission, Climate-resilient Development Across Asia 16-41 SHUTTERSTOCK SOF Rachmat Witoelar Rachmat Gobel MAS DOC. JAPAN EMBASSY Yoshinori Katori Asia, a continent consisting of 46 countries with a population of more than 4.2 billion people, or about 60 percent of the global total, has experienced the fastest economic growth of any region in the world in recent decades. Green Investment Forum SOF DOC. JICA Jusman Syafii Djamal Atsushi Sasaki IST Nurjaman Mochtar Green Champions 50 54 DOC. GIIP Green Pathways: The Future Indonesia IST SHUTTERSTOCK Contributors VOLUME I/ 2013 Investment-Innovation-Productivity Rachmat Witoelar PRESIDENT’S SPECIAL ENVOY FOR CLIMATE CHANGE/ EXECUTIVE CHAIR OF THE NATIONAL COUNCIL ON CLIMATE CHANGE (DNPI) Indonesia is approaching a critical time with political transition in 2014 and pre 2020 and beyond 2020 climate change negotiations. 47 8 GHG Mitigation Action and the Future of Biofuel Industry 60 64 Better Sustainable Landscape Management Needed Large deforested areas, accumulations of garbage in urban as well as in rural areas, severe flood, damaged coral reef are among concerns raised by speakers and participants of Focus Group Discussion on “Energy Conservation and Efficiency” on July 2, 2013. 64 12 SHUTTERSTOCK A Need for Concerted Effort: Energy Conservation and Efficiency 72 82 84 88 Green Highlights Investment-Innovation-Productivity GREEN INNOVATION Increasing Awareness and Initiatives in Green Building Book Review Increasing Awareness and Initiatives in Green Building Respect and Love The Nature “ I’ve seen a stop to excessive fishing and coral harvesting, and even in Bontang, Kalimantan, with rampant large scale mining, there are serious activities to maintain forest function” In a bid to encourage the industry to be more environmentally aware, Matsushita Gobel Foundation and the Japan International Cooperation Agency (JICA) hosted the Green Investment Forum. Green Pathways NADINE CHANDRAWINATA Green Pathways for The Future Indonesia Rachmat Gobel CEO OF PANASONIC GOBEL GROUP Master Helmsman’s Concerns on Green Energy Doddy S. Sukadri Sandra Artissa Khananusit Panjaitan DNPI and Low Emission Development Strategies (LEDS) Partnership. Asia LEDS Partnership Secretariat. Adrian Muhammad Peter van C Hayes Farid Rooij Australian Indonesia National Climate Change Center University National Council on Climate Change (DNPI) ILO Indonesia Facts & Figures Green Investment Magazine is joinly published by National Council on Climate Change (DNPI) in cooperation with Japan International Cooperation Agency (JICA) and Matsushita Gobel Foundation (MGF). Network Updates Contact Address: Gedung BPPT I Lt. 16 Jalan M.H. Thamrin 8, Jakarta 10340, Indonesia Tel. +62 21 3190 4635 Photo Gallery Cover National Monument (Monas) and surrounding areas indicate the challenge of spartial reenginering to cope with population dynamics and climate change impacts. (photo credit: Budiali G) www.greeninvestmentindonesia.net @greenIIP greenIIP, email: greenIIP@ greeninvestmentindonesia.net Investment-Innovation-Productivity ADVISORY BOARD Rachmat Witoelar, Agus Tagor, Agus Purnomo, Amanda Katili Niode, Rachmat Gobel, Jusman Syafii Djamal, Atsushi Sasaki, Farhan Helmy (Secretary). EDITORIAL BOARD Farhan Helmy, Amanda Katili Niode, Titi Murni Resdiana, Masato Kawanishi, Jun Ichihara, Matsuura Kazuki, Ricky Rachmadi. EDITOR IN CHIEF Farhan Helmy. EDITORS Jon Respati, Yudhiarma MK, AG Sofyan, Teguh Prasetyo. LAYOUT AND ILLUSTRATOR Sugara Adi. PORTAL Alfan Nasrulloh, Fahmi Januar. PROJECT MANAGEMENT Aviana MS Tjokro. PROJECT ASSISTANTS Manami Iida, Indra Sucahyo, Dewi Aprianti, Irmawati Batavia, Jesslyn Tandella, Astri Indirawati, Bramantyo Dewantoputra, Soraya Soemadiredja.
  • 5. 8 9 • GREEN PATHWAYS Better Sustainable Landscape Management Needed Large deforested areas, garbage accumulation as well as in rural areas, severe floods, damaged coral reefs are among concerns raised by speakers and participants of Focus Group Discussion on “Energy Conservation and Efficiency” on July 2, 2013. S peakers and participants shared common views that environmental damages and degradation are highly visible on the Indonesian landscape, recalling the necessity to engage the society into greener behavior and practices. The discussion featured four speakers who presented experiences in some projects enlightening the situation on the ground, showing critical elements of landscape management, the challenges they met and the lessons learned through these experiences. The experts and practitioners from both private and public sectors gathered in the Focus Group Discussion (FGD) also came up with ideas about ways and possible actions needed to get better results from Sustainable Landscape Management. Engaging Stakeholders in a Sustainable Forest Management Indonesia’s rain forest is currently undergoing a high deforestation rate. Working on a project in the Berbak area, in Jambi, M. Budi Kuncoro, Green Prosperity Manager at Millennium Challenge Account (MCA Indonesia) develops innovative ways to preserve forests. Particularly, Kuncoro proposed ideas of environmental preservation and the tools that could be used to merge environmental sustainability and the economic development of communities living from these resources. The forest in the Berbak area is divided into several zones, • GREEN PATHWAYS each dedicated to a specific utilization including: National Park, production forest, protected forest and the community national park (known as “tahura”). Logging companies and communities utilizing these resources in an unsustainable way, leading to fast deforestation and damaging the biodiversity and landscape. Field experiences have shown how policy and technology interventions can improve the land management. Building canals, dams and fishing corridors can ensure better water management. Land accessibility for villagers make a huge difference in terms of yield productivity. Also, engaging them in forest management (in activities such as patrolling against illegal logging) greatly contributes to sustainability in the area. Developing sustainable cultures and aquaculture activities in the area contribute to reduction rate of deforestation. Economic and environmental services are mutually enforced in these cultures. However, implementing such development plans and applying planning tools is challenging. Aligning administrative jurisdictions and defining formal land use zones with deserved biophysical features of the landscape is not easy. It requires a Participative Land-Use Planning (PLUP) approach engaging all the stakeholders in a dialog to arrive at common goals and collective solutions to achieve them. At the same time, spatial certainty has to be guaranteed in order to provide accurate information on the allowable land-use. Information on clear licensing procedures to investors is also needed to increase their business confidence. DOC. GIIP M. Budi Kuncoro Green Prosperity Director MCA Indonesia Investment-Innovation-Productivity Investment-Innovation-Productivity BUDIALI G
  • 6. 10 11 • GREEN PATHWAYS • GREEN PATHWAYS credits. Solutions are proposed to limit detrimental practices, such as replacing local corn planting culture which put great pressures on the land fertility with higher economic value plants like cocoa. The projects provide benefits to local communities including new employment possibilities thanks to the project based on a “ground truthing activity”. Heri Yunara Conducted a feasibility study REDD+ model project for the Gorontalo Applying REDD+ Program at Sub-National Levels In Sulawesi, data shows drastic shrinking of forested areas over the past 20 years. Deforestation is mainly caused by unsustainable agricultural activities characterized by irresponsible land clearing and prevalence of forest fires associated with it, or improper cutting off trees on steep slope zones that cause capacity reduction of water infiltration into the soil. The projects engaged by MGF enjoy full supports from both Indonesian and Japanese government . First Hands Encounter With West Java’s Environmental Issues Another interesting initiative discussed during the FGD sessions was the “Fortuga Expedition”, a three months field trip made by members of the Bandung Technology Institute (ITB), from South to North coast of Java, aiming at seizing local environmental problems and finding ways to solve them. Starting from the South Coast, the team encountered damage caused by intense mining activities,. But the expedition also got information about Chevron’s CSR program restoration of a biological corridor from the Mount Halimun to the Balak National Park, in West Java through replanting about 250,000 trees in the area. DOC. GIIP Investing in planting material enterprises can greatly increase the production of appropriate yielding crop varieties of small-scale farmers The REDD+ program aiming at reducing carbon emissions from deforestation constitutes an important component of sustainable land management. The latest version of this program integrates elements of land conservation and sustainable forest management. The expedition was concerned about the negative impacts of tourism on the fragile ecosystem of Gede Pangrango National Park, near Bogor, where visitor awareness of environmental issues need to be increased. At the Citarum watershed to Cisanti Lake, pictures show dreadful scenes of deforested areas subject to landslides and degradations. Samples collected in Majalaya showed high levels of industrial pollution. The team were also confronted with piles of domestic waste that constitutes a great threat to the environment. Shocking pictures of the Batujajar Bridge, Bogor, shows the sad image of a river literally covered by garbage. Heri Yunara, an activist with the Matsushita Gobel Foundation, conducted a feasibility study of a REDD+ project at the Gorontalo region, North Sulawesi.. Using the MRV as the measurement tool, the MGF team works on 5 projects, which objective is reducing 100,000 metric tons of CO2 emission/year. The project shall be extended to cover the whole Sulawesi by 2016, contributing to more than 1,300,000 tons CO2 reductions/ year making the project to become sub-national REDD+ project in Sulawesi. Ending at Citarum Mouth, at about 30km east to Jakarta, the expedition learned about intensive mangrove destruction, and the rehabilitation initiatives conducted by environmental groups. Going offshore from the Jakarta Bay, the expedition found that the Thousands Islands region, a touristic area consisting of more than 300 small islands off Jakarta coast, is facing serious consequences from global warming and water pollution causing coastal abrasion and coral reef damage. This situation requires serious attention from the government to prevent the problems from worsening. The model also aims at helping local government to conduct capacity building activities for the communities on the implementation of the project and providing incentives to encourage a sustainable use of forest resources in the forms of subsidies and carbon The trip very useful to raise awareness about environmental threats happening near home. The expedition also has confirmed the participants’ interest in reforestation, mangrove protection and coral rehabilitation programs. They are currently developing Investment-Innovation-Productivity DOC. GIIP Green Landscape. Raising awareness about environmental Threats 100,000,000 Carbon Stock (t-CO2) DOC. GIIP The field survey will be supported by two satellites that will be launched in the coming years in order to monitor the land condition, resources management practices and natural disasters threat. The MGF project also installs solar power panels to provide basic lighting needs for the villagers emigrated from deforested areas. Yunara said more Japanese aid in solar panel is expected for regions that lack of electricity including providing power for medical-clinics.. Iwan Hignasto 80,000,000 60,000,000 40,000,000 20,000,000 0 DOC. GIIP Citarum-Ciliwung Expedition 2013 1990 Reference site methods and tools to overcome the environmental problems. 2000 2010 year Project site Based on the historical trends of carbon stock changes (in red), Reference Emissions Levels can be established. Model Project may reduce 30,000 t-CO2/year. With success rate of 70%, approx 20,000 t-CO2/year is expected. A Better Water Management to Limit Flood in the City The city of Jakarta receives 2,300 mm of rain water a year. However, with a population reaching more than 10 million, the clean water demand is estimated at 737, 3 million cubic meter per year. Serious water shortages hit during the dry season. Landscapes around the city have been severely damaged due to human activities. Tea gardens planted during the Dutch colonization accelerated deforestation, and therefore trees could not assure their role in the water cycle. According one of participants in the forum, Jakarta’s water issue mainly relies in land-use changes made without considering conservation. Authorities still resolve flood in the same devastating way-horizontal drainage method-letting water flow to the sea. Canals within the city rapidly overflow with heavy rain. A new approach has to be put forward to solve floods. It is necessary to adopt a more global concept of “Total Conservation”, taking into account landscape conservation aspects (through plantations for example) and the city’s own characteristics. There needs to be a change from horizontal to a vertical drainage. The FGD proposed concrete realizations to be done in different parts of the city. Dams, ponder systems and rain harvesting should be developed in the northern part of the city, localized on the sea. Floods could be reduced by increasing green spaces (to 30%) and blue spaces (to 12%) in the South of the city. The area of Depok, Bogor and Puncok should welcome the realization of a vertical tunnel reaching about 300 meters. Such realizations could greatly impact floods and the devastating consequences for Jakarta’s inhabitants.• Investment-Innovation-Productivity
  • 7. 12 • GREEN PATHWAYS 13 • GREEN PATHWAYS a need for concerted effort: Energy Conservation and Efficiency Energy conservation and efficiency is the main topic discussed in the second Focus Group Discussion (FGD) on 2 July 2013. SHUTTERSTOCK Investment-Innovation-Productivity Investment-Innovation-Productivity
  • 8. 14 15 • GREEN PATHWAYS be addressed by the project. Whereas strong commitment and support from local authorities are necessary, the program administrators also hope to get support from the central government as part of the national efforts in transforming the economy into green economy. Green Buildings Save Money From Energy Efficiency and Help Protect Environment. Another interesting topic was the development of ‘Green Building’, an emerging concept and practice with large potentials to make great impacts on reducing global warming and protecting the environment by developing environmentally responsible and highly energy efficient buildings The concept implies energy efficiency and using environmentally non-intrusive materials are imperatives to make the building “green”. The qualifying criteria for green building are not limited to the chosen materials, the energy settings and the construction process but also considering the aspects of building maintenance and operation. Green building qualification or rating is also applicable for renovated buildings, in which case the evaluation includes examining the (old building) demolition activities to ensure that it meets the criteria Sustainable Landscape Management. Speakers and participants of FGD are discussing matters related to sustainable landscape management S peakers and participants shared their views on the responses to the challenges of reducing CO2, by taking initiative and to obtain economic gains and at the same time protect the environment. The discussions revealed many ways how the national and global community can meet the challenges, from simply replacing incandescent bulbs into more energy efficient LEDS, to sophisticated projects that require big investments. But to ensure effective results of all those measures, there to be needs governments’ strong goverment commitment which translates the commitment into to be effective policies that support the public initiatives. There needs to be international collaborations to achieve the goals, as no single country in the world can solve the global problems. The followings are some of the interesting topic discussed in the FGD. One of the projects engaged by this movement in Indonesia is promoting the use of highly efficient LED (light-emitting diode) bulbs to replace the traditional lighting bulbs for public lighting in two Indonesian cities, Balikpapan and Bogor. Working closely with local authorities, the organization seeks to embed LEDs use in the cities’ administration policies and regulations to ensure its successful and consistent implementation. In doing so, it hopes to accelerate the transition towards a low carbon society in the urban centers. ICLEI has been involved in a three year long program to identify priorities for reducing carbon emissions in cities and urban areas.. The project’s scope is not limited to power efficiency issues but also with other urban issues like waste management. The project enjoys full support from city administrations that saw it as a ‘green cause’. Reducing Energy Consumption In the Public Service Improving energy efficiency in public lighting system is one of the ways to reduce energy consumption in cities. This issue was brought up by ICLEI a movement of 1200 cities in the world to promote the concept of sustainable cities. Balikpapan and Bogor were chosen as “model cities” for its relatively modest sizes and complexity representing typical small cities in Indonesia. Upon successful outcomes in the two small cities, the project aims to include four “satellite cities” around big cities in Indonesia to joining the program. Discussions are currently being made to define the cities’ needs and priorities to Investment-Innovation-Productivity DOC. GIIP In Indonesia, the green building concept is advocated and promoted by the Green Building Council Indonesia (GBCI) a chapter of the World Green Building Council based in the USA.. The organization conduct assessment and rating procedures, capacity building for relevant stakeholders leading to awarding “greenship” certification, and general awareness programs for the general public about the aspects of green building. GBCI has engaged in discussions with relevant stakeholders including government agencies to advocate mandatory application of the concept in line with the efforts to reduce GHG emission reduction and preserve the environment. GBCI ensures transparency of the rating process using tools that are clearly understood by stakeholders. This will ensure objectivity of the rating applied. The rating process involved active design to ensure optimum energy efficiency is properly considered and the building meets sustainability imperatives. Typical aspects of concern for green building include lighting, air conditioning, and environmentally friendly technology. Assessing old and existing buildings poses greater challenges to GBCI to conduct the rating procedures as their original design most likely did not consider the aspects critical to green buildings.. For 2012, GBCI targeted saving over 6 million KWh electricity reducing almost 6,000 ton of CO2. The 2013 target is set at 34 Million ton of CO2, which will involve certification of 50 buildings covering a total 50 000 m2 built area or alternatively 121 buildings with a total coverage of 20 000m2. The main barrier of green building development and transformations are the relatively higher investment to build new green buildings or transform old buildings to meet green buildings criteria. While people are willing to do something to • GREEN PATHWAYS reduce their electricity bills, most of them are not ready adopt the entire criteria of green buildings for their property. Most people do not want to consider to making green investments unless they se an economic benefit. To overcome this barrier, time and hard work is required by all proponents of the green building concept to raise awareness among stakeholders including building owners, contractors, designers, government and politicians of the great prospects of green buildings in contributing to the national target to reduce significant amount of GHG emission. Energy Efficiency Pays The government vision in reducing long term energy demands gives significant room to energy efficiency (EE) measures. To justify the validity of this vision, a recently conducted energy audit by the Ministry of Energy and Mineral Resources (ESDM) of 481 companies between 2010 and 2012 to assess energy efficiency potentials in those companies indicated that companies implementing the basic recommendations for energy efficiency could make significant economic gains. At the government levels, the audit showed that the financial savings resulting from energy efficiency investments were much higher than the amount of the investment. For example, replacing 2,8 million traditional street lights bulbs with energy efficient LEDs would need a total investment of 14 billion IDR over 10 years period, while the value of the energy saved by the replacement would be about 90 million IDR . In addition to save 17,1 million IDR on strict electricity, there would be less costs for light replacement and subsidy savings. Also, reducing the energy demand would slow the need for new power plant and contribute to reduction of GHG emissions. The main issue is about how to find funds. While Clean Development Mechanism (CDM) could a good solution, the price of CERs dropped to 0,5 EUR, which greatly limits its potential. The main source of funding today is the voluntary market: in 2012, 101 million tonnes of carbon offset have been contracted for future delivery. This represents a 4% increase compared to 2011. The overall market value decreased compared to 2011 with a volume-weighted average price of 5.9/ tCO2e today (against 6.2 in ). Offset buyers are mainly companies willing to reduce their externalities, often in the frame of their CSR policies. Research programs and Clean Technology Fund constitute another way to fund energy efficiency. Donors are developing such projects such as the ADB Private Sector Geothermal program or the IFC Energy Efficiency and Renewables. According to a participant from South Pole Carbon, the Ministry of Finance is interested in providing funding for the energy efficiency projects as long as they lead to energy subsidies reduction. In addition to proper savings allowed by energy efficiency initiatives (estimated at 1,7 billion IDR/ year), the MoFhopes to reduce subsidies as well; a 790 billion IDR investment in EE would lead to a 300 billion reduction of energy subsidies.• Investment-Innovation-Productivity
  • 9. 16 17 • INTERVIEW Rachmat Witoelar • INTERVIEW President’s Special Envoy for Climate Change Executive Chair of the National Council on Climate Change (DNPI) Indonesian Climate Change challenges While the international community generally appreciates Indonesia’s commitment to reducing its GHG emission significantly, many people on the ground were rather skeptical about the effective implementation of this goal. A great deal of people saw the statement made about 2 years ago by President Susilo Bambang Yudoyono (SBY) to reduce 26 - 41% of the emission as no more than an image building campaign that is an obvious ‘signature’ of the two term administration. But the government seems to mean business by establishing a national plan for the implementation of the plan, the National Action Plan for Climate Change Mitigation ( RAN-GRK), announced early last year despite the seemingly serious plan, skepticism remains. One important argument for such skepticism is because the government does not seem to fully consider the complexity of carbon emission. To meet the overall objective of the carbon emission reduction, the plan must be embedded the overall national development strategy. Failing to do it has resulted in the government’s inconsistencies when it comes to making effective policies to meet the development objectives. Another reason for the skepticism is that legislative politicians rarely speak or initiate discourses on the issues of climate change. Perhaps their lack of interest in climate change issues is rooted in their lack of knowledge of the issues. Skeptics say politicians in Senayan seem to consider the issues as primarily the domain of the government, while on the government side, they find the efforts in dealing with climate change as half-heartedly implemented. This is evidenced by the lack of effective authority held by the Ministry of Environment that should the primary agency to deal with the complex climate issues. This ministry currently does not demonstrate the effective authority to spur all the national stakeholders to do what it takes to mitigate climate change impacts and to adapt to new climate parameters. GIIP spoke with Rachmat Witoelar, a senior politician under Suharto Administration, and currently Executive Chair of the National Council on Climate Change (DNPI), to get first hand information about the current national efforts in coping with climate change issue. Mr Witoelar shared his views on the current status of Indonesia climate change issues and on his expectations of Indonesian climate change, global current and future mitigation and adaptation efforts. SOF Investment-Innovation-Productivity Investment-Innovation-Productivity
  • 10. 18 19 • INTERVIEW • INTERVIEW In the global perspective, I believe Indonesia has shown a strong commitment to coping with global warming and climate change issues by planning to lower GHG emissions up to 41% by 2020 based on international collaboration, as President SBY had announced it to the world about two years ago. SOF What are the main concerns in coping with climate change issues in Indonesia and the challenges that the government is currently facing? archipelago located in the tropics global climate change, but of course we can not deal with these issues unilaterally. The Government is greatly concerned about global climate change issues, while at the same time it has to meet the challenges of building a strong national economy amidst the fast depletion of global natural resources and a growing population. At the national level, I have great concern about the slow and meager responses of relevant, if not all, government agencies to the national efforts in mitigating and adapting into the negative impact of climate change, while the impacts are evidently experienced by Indonesia today. The whole world should share a common vision and responsibilities in saving the planet, though each country has its own responsibility based on its specific conditions and capacity. In my view the government needs even stronger political will to deal with the looming danger of climate change, and to do what it takes to prevent serious devastation to our country and protect our people from the negative impacts to development and sustainability. We should realize that being the world largest I think most of us are beginning to realize and feel the real impact of global climate change in our daily life in our country. Many climate anomalies that triggered more severe natural disasters have happened globally , and Indonesia has its share in experiencing them. In the global perspective, I believe Indonesia has shown a strong commitment to coping with global warming and climate change issues by planning to lower GHG emissions up to 41% by 2020 through international collaboration, as President SBY had announced to the world about two years ago. The increasing prevalence of natural Investment-Innovation-Productivity disasters and their severity could disrupt or at least influence (negatively) the economies of many countries including Indonesia. What are, in your view, the government’s achievements in terms of policies and implementation to deal with climate change? As I said, as a developing country, Indonesia has put itself as the forefront of global efforts by commuting to reduce GHG emission at relatively significant level. The world applauded this commitment as not so many countries, including highly industrialized ones, are making such clear and significant commitments (in that respect). Indonesia’s significant target to reduce GHG5 generally receives positive responses from some industrialized countries and the UN bodies. This resulte in various initiatives (proposed), including plans associated with REDD+ programs to deal with climate change mitigation and adaptation activities in Indonesia. Such initiatives, include the recently (2010) established partnership with Norwegian government to deal with deforestations issues. I hope more of those initiatives will be established and properly implemented in the near future. Other achievements like the establishment of RAN-GRK last year seems to go unnoticed by the general public, perhaps because the media have not paid great attention to it. I must admit, however, that establishing a plan is one thing, but the effective and consistent implementation of it is another matter. What we are lacking here is a comprehensive monitoring and reporting system which could provide the information to the public, about the up to date status of the national efforts in combating climate change. Such data should also be translated into plain language to make it comprehensible by the general public. What are your views about the current responses of Indonesia’s industrial sector toward greening the country’s economy? Industry plays a strategic role in transforming Indonesia’s economy towards “a green economy”, by embedding sustainability thinking into their business strategy. Not only industry but all the economic sectors must contribute to building the fundamentals of green economy. Particularly, industry should strive for producing truly “green” products in the sense of making it part of the greater efforts to make the whole national economy sustainable, and resilient against negative impacts of climate change. From my perspective, to make the transformation into green economy, the government should be more serious and effective in dealing with the climate change mitigation and adaptation. Policies and regulations necessary to govern these issues must be effective and consistent to ensure that all stakeholders adhere to it. The regulations must also clearly stipulate incentives and disincentives to stimulate the public initiatives to produce positive impacts. Investment-Innovation-Productivity It seems that there is currently some public skepticism about Indonesia’s serious commitment in coping with climate change in the long run. What are your expectations of the future governments in this respect? I believe it is high time for Indonesia to have a Law on Climate Change to provide a stronger legal umbrella for all the policies and regulations needed to cope with the issue. I sincerely hope that the next year’s general elections will produce strong leaders in government and longterm thinking statesman, like legislators at the House of Representatives (DPR) who will work hard to tackle the pressing issues related to global warming and climate change. Therefore I hope that the law will be produced in the near future. I know that some major political parties have expressed their intentions to deal with climate change issues more seriously in the next administration. I believe that the public or constituents are supportive to this idea. As I said, to make our country and society sustainable, there needs to be
  • 11. 20 a clear vision, strategy and long-term plan that must be consistently implemented. I hope the next government will better realize this and act upon accordingly to get things done properly. You mentioned two big challenges related to the agreement to lower emission before and after. Second, by 2015 the ASEAN will turn into One Community Nation. How should Indonesia respond to the targets and challenges? Indonesia should have integrated economic and social policies both locally and globally. In addition, Indonesia should intensify discussions globally to make the policies for easy implementation 21 • INTERVIEW by the public in the perspective as stated in the climate change convention that was ratified in 1994. These are long-term policies. Indonesia is approaching a critical time with political transition in 2014 and pre 2020 and beyond 2020 climate change negotiations. The green economy and associated investments are also a matter of institutional transformation. This transformation presents a huge opportunity for developing countries to maintain high economy growth while keeping GHG emissions low. It poses enormous challenges in terms of a long term vision, leadership, and strong engagements among sectors. In addition, the upcoming ASEAN Integration into One Community Nation 2015 will also lead to the same direction. This requires the transformation of green economy ideas into viably sustainable and feasible actions that encompass policies and direct practical actions. You mentioned earlier that Indonesia needs to have a strong Law on Climate Change. Could you elaborate why do you think that such law is needed? Indonesia is approaching a critical time with political transition in 2014 and pre 2020 and beyond 2020 climate change negotiations. As I said, we need a stronger legal basis to implement policies on climate change, therefore DNPI currently sees the urgency of such law to ensure that all efforts related to mitigation of and adaption to climate change imperatives are legally protected. A number of developed countries including the EU, the UK and, New Zealand, have already enacted laws on climate change. Some developing countries like China, Colombia and the Philippines also have such laws. With that law, these countries could support the creation rigorous and legally based efforts to tackle climate change to protect national resources. Indonesia should also have similar laws to better protect its resources for future generations. In addition, the law would also provide a strong legal basis for the government to transform the economy into sustainable and resilient economy. Climate change is one of the most important triggers for conducting an economic transformation. You wrote on recent paper “Study on Population Dynamics and the Human Dimensions of Climate Change,” about the importance of transforming the economy into green (sustainable) economy, and to do this, the government should make climate change issues to be part of the national development policies. Would you share about it to our readers? DNPI has identified various options to Investment-Innovation-Productivity • INTERVIEW reduce GHG emissions, including the need to implement serious and systematic drives toward energy efficiency in all sectors. For example, energy efficiency in urban areas through better evidence-based spatial planning and allied interventions could produce enormous results in reducing the national energy consumption and increasing conservation. DNPI also sees the need for revitalizing the national family planning program to make a major contribution to GHG mitigations efforts over the next 40 years and beyond. It is also important to invest heavily in the education of today’s youth as an essential component of a successful transformation into a green, sustainable economy. In my opinion, much can be done to promote the benefits of green choices and sustainable lifestyles to help mitigate the current steep rise in the country’s carbon intensity, especially among the youth. How do you think DNPI could help the government stimulate the public and private sectors to engage activities in climate change mitigation and adaptation? The government and the private sector face common challenges in combating climate change to provide the necessary and conducive conditions for sustainable growth. Only by productive cooperation can we achieve our common goals. By engaging in cooperation with the Investment-Innovation-Productivity private sector DNPI can help promote the investments and innovations that are essential elements in driving the economy towards sustainable development. Combining these two elements will create a new market for ‘green’ goods, services and employment. Significant investment is needed to ensure the institutional transformation toward maintaining a high economic growth which at the same time lowering GHG emission. Innovation plays a critical role in finding new ways toward sustainable production and consumption. Through cooperation with public and private sectors at national and international level involving experts and practitioners from diverse areas and Industries, DNPI can maintain frank dialogue, share knowledge, experiences and best practices on various issues related to climate change impacts, mitigation and adaptation. Currently DNPI maintains a partnership with Matsushita Gobel Foundation, the Embassy of Japan in Indonesia and the Japan International Cooperation Agency (JICA) to engage in various activities related to climate change mitigation and adaption, including capacity building activities. DNPI greatly appreciates Matsushita Gobel Foundation, the Embassy of Japan to Indonesia and JICA and thankful for their consistent and continuous support for this cause.•
  • 12. 22 23 • INTERVIEW • INTERVIEW With determination to do everything for the development of the industry, Rachmat Gobel, CEO Panasonic Gobel Indonesia Group has a good record in the survival of electronic manufacturing Indonesia. His success lies in combination of resilience and discipline. Even his big concerns are mainly focused on the development of other industries in Indonesia. His dedication to brought him recognition, in 2011 he was awarded the prestigious Asian Productivity Organization Regional Award for contributions to improving productivity in Indonesia’s industrial sector from the Asian Productivity Organization, Tokyo, Japan. He is also one of the private sector leaders in introducing sustainable development through Green Productivity forging strategic partnerships with the rest of Asia and the Pacific. He identified the urgent need of the industry to help strengthen the country’s energy resilience while coping with prevailing environment issues in the industrial sector. His significant work to improve Indonesia’s industrial sector and extensive promotion of new and renewable energy was rewarded with an appointment as Chairman of the Indonesian Renewable Energy Society (METI) Rachmat Gobel shares his views on energy and environmental issues to Green Magazine at his office in Jakarta. Indonesia is facing crucial problems in the energy and environmental sectors. How have Japanese firms including PT Panasonic Indonesia coped with the prevailing problems in the two issues’? MAS Rachmat Gobel CEO PANASONIC GOBEL INDONESIA GROUP Master Helmsman’s Green Energy Concerns Japanese firms are mostly aware of the importance of anticipating the energy crisis and moving forwards toward the achievement of energy resilience. Energy issues are inseparable with environmental issues especially related to climate change. There has been an increasing urgency in the industrial sector to develop environmentally-friendly technology. As part of the Japanese government’s policy, Panasonic Indonesia has made a strong commitment to be at the forefront as a green and innovation company. We see manufacturers in Japan as risk takers for the sake of becoming green and innovation companies. Japanese manufacturers, like those in other parts of the world, actually still feel the pinch of economic slowdown. However, the industrial firms in Japan and a number of Japanese companies in Indonesia are risk takers, becoming green and innovative companies with large Investment-Innovation-Productivity investments to ‘transform the industry into a green industry’. Companies there in Japan as well as Panasonic Indonesia, have gone through various changes for innovation and further turned into green companies in all production lines. There have been wide range of changes especially in production. Our products are made with the use of environmentfriendly raw materials. Our factories have also improved energy process to reduce gas emission. Secondly, we have strived to improve productivity and efficiency. Thirdly, we create good quality products. Fourthly, the company provides better health services for our employees. Fifthly, the company’s human resources are morally better with high responsibility in managing natural resources. The company has already taken into account, efficiency in the use of energy, ranging from hydro, oil, gas to electricity. To that end, we set up rules of the games for all of us in Panasonic to go ahead together for efficiency as the company’s Investment-Innovation-Productivity movement and with strong corporate culture for the benefit of all including other industries. In turn it will also strengthen our competitiveness in terms of cost efficiency and others. Panasonic is as also a company with strong leadership and with a great commitment to preserve the environment. We are not only a company for the sake of employment as it may cause new problems. Employment by the company without having strong commitment and responsibilities has no added value. Our human resources may fail to achieve improvements in all aspects for the company and the nation. We encourage our employees not to only think about their own benefits but also for the success of all in the company and contribution for the nation. Industrial firms in Indonesia should play bigger role to preserve the environment starting from improving their industrial waste treatment facilities. Otherwise, bad environment within and outside companies’ premises will affect employees’ health and productivity. We should have better rules of the games
  • 13. 24 25 • INTERVIEW • INTERVIEW The company has already taken into account of efficiency in the use of energy, ranging from hydro, oil, gas to electricity. MAS to make all stakeholders in the industrial sector help the government deal with environmental problems including climate change. Environmental issues and connectivity among the ASEAN members countries have come to the surface in recent ASEAN and APEC summit forums. How do you see the benefits of Indonesia by participating in the forums especially in terms of improving productivity, competiveness and concerted effort to cope with climate change? Certainly Indonesia has taken many benefits from the ASEAN and APEC Summit forums. Indonesia and other members have agreed to accelerate physical, institutional, and people-topeople connectivity. The industrial sector benefits economically and environmentally from greener power policy. We from the industrial sector can help the government cope with frequent and more intense extreme weather events due to climate change caused by carbon emissions. Indonesia as part of Southeast Asia with its rapid economic and population growth should play an important role in the global solution and make low carbon emissions achievable. For sure, connectivity can reduce production and transportation costs, strengthening regional supply chains as well. For the industry cost efficiency is a crucial factor to survive. There have been calls from global movements for reducing the dependency on fossil fuels by increasing the contribution of renewable energies. We in Indonesia have tried to intensify the use of new and renewable energy for outlying or remote regions to operate renewable energy based power plants using solar or wind energy. We are also encouraged to fully utilize renewable energy for the benefits of all the ASEAN member countries. Indonesia is endowed with rich natural resources to become a leading player for clean, renewable energies in the Investment-Innovation-Productivity South Asia. Renewable energies are more competitive than coal. We should fully utilize indigenous local resources and create more employment. With the use of more renewables, Indonesia has an economic advantage. The industry as a partner of the government will also offer solutions, not become a burden. We, the industry can help the country to reduce dependence on fossil fuels like oil and coal. To that end, we keep on developing environment-friendly technology for our manufactures. We also keep on developing recycling technology within the company and encourage similar concerns to other industries to do likewise. It is time for Indonesia to gradually switch to the use of renewable energy sources. However, we still face bureaucratic constraints. What is the Role of METI in proposing regulation to the government? Indonesia has large potential of new and renewable energy such as wind, solar, hydro and geothermal. Indonesia is home to around 40 percent of the world’s geothermal energy reserves. Indonesia also has up to 75,500 megawatts of estimated hydropower resources and generates 4.80 kWh per m2 per day in solar power potential. With the big potential of new and renewable energy, the Indonesian government set targets to generate 6.7 gigawatts of installed renewable energy capacity by 2025. However, Indonesia’s transition towards renewable is not smooth as expected to meet this target. This underperformance is due to the insufficient extent of the government’s effort to provide incentives to investors wishing to venture to the country’s renewable resources. It is related to a certain extent with a lack of awareness. Apparently the government’s improved political will is needed to reap benefits from the country’s renewable energy potential. The government must have a better understanding of the importance of renewable energy and ready to shift its mindset away from its current focus on fossil energy. Do you see the need for Indonesia to have more regulations for energy resilience and environment? There have been efforts to issue more regulations in addition to a number of regulations on energy and environment already in force. However we should not only make regulations to blame someone only, but more importantly we must keep on socializing the importance of the regulations and its implementation to the public. It is the role of the industrial sector to help the government manage energy and the environment. Players in the industry should be more active in its cooperation with the government. The industry a partner for the government especially in energy resilience and the environmental Investment-Innovation-Productivity preservation among others by promoting green industry concepts. The industry is also developing recycling technology to significantly reduce industrial wastes. Are there any expectations for the future role of the industry in Indonesia and in the global context? Indonesia has the potential to develop strategic industries in the fields of renewable energy and energy efficiency technologies. METI sees the need to extensively develop research on new and renewable energy in Indonesia. Hopefully, the encouraging development in the field will make renewable energy more financially viable. The government and the industry, needs the introduction and application of more consistent policies within the real sector and greater collaboration with the foreign countries in the energy sector. There should be more bilateral cooperation in developing green energy.•
  • 14. 26 Yoshinori Katori 27 • INTERVIEW • INTERVIEW Ambassador of Japan to Indonesia Joint Crediting Mechanism (JCM) A New Initiative Promoted by Japan Below is an article by HE Yoshinori Katori, the Ambassador of Japan to Indonesia. First of all, I would like to extend my heartfelt congratulations on introducing the first edition of this magazine by Indonesian National Council on Climate Change (DNPI). I am convinced that this magazine will contribute to raising public awareness on climate change problems and provide useful insights on how to cope with the challenges associated with it. I am witnessing significant progress in developing climate change policies in Indonesia. The Government of Indonesia has developed the National Action Plan for GHG Emission Reduction (RANGRK) by setting a voluntary target of 26% emission reduction from BAU to be achieved by 2020 (or 41% with international assistance). The government is currently also embarking on a strategic project aiming to establishing the country’s GHG Inventory. DOC. JAPAN EMBASSY Yoshinori Katori (left) and his Indonesian counterpart Rizal Lukman attending joint press release upon the completion of signing of JCM bilateral document between Indonesia and Japan (Aug 30, 2013) Global actions for combating climate change and promoting a low carbon society are vital to evade great catastrophic impacts to human civilization on this planet. Japan is introducing a new mechanism, Joint Crediting Mechanism (JCM), in order to promote development of low carbon society. This new mechanism is expected to be of useful means, as are other credit schemes like CDM, to achieve the ultimate goals of global climate change mitigation. Investment-Innovation-Productivity Along with these efforts, it is important to explore ways to implement concrete activities on the ground towards achieving the objectives of sustainable development (the “green growth”), particularly by mobilizing new technology and securing the necessary funds from the private sector and other national and international sources. This strategy was one of the main subjects discussed in the Second “East Asia Low Carbon Growth Partnership Dialogue” held in Tokyo in May this year. And for the purposes of disseminating and promoting low carbon technologies the Government of Japan has proposed the establishment of “Joint Crediting Mechanism (JCM)”. It is our great pleasure to announce that Japan signed a bilateral document with Indonesia on the establishment of JCM on August 26, 2013. Similar documents have also been agreed upon so far with seven other countries, i.e. Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Viet Nam, and Laos. JCM is one of the measures to help facilitate green investment, and boost innovation as well as productivity. Therefore, I’m particularly pleased that GREEN magazine has chosen JCM as a main topic in its first edition. What is JCM? In order to effectively address the issues of climate change, it is necessary to achieve low-carbon growth at a global scale through mobilization of green (low carbon) technologies and finance which enables expansion of markets for green products and services. These factors are crucial to accelerate the development of renewable energy; build more efficient power generation systems; produce various low carbon products like energy efficient home electronics, low and emission-free vehicles and other low carbon products; and to deploy energy-efficient manufacturing processes. JCM is a new scheme that Japan is currently promoting in order to help support various projects using low carbon technologies, develop low carbon products and services as well as implement carbon mitigation actions, which, overall, is expected to contribute to sustainable development in developing countries. From Japan’s perspectives, the GHG emission reductions achieved by the JCM in partner countries will help Japan to achieve its emission reduction target. The bilateral JCM will stimulate and boost the transfer of low carbon technologies and improve mitigation actions faster and in more flexible way according to the particular condition of the partner countries. I would like to stress that the JCM will be implemented to ensure transparency, credibility as well as environmental integrity. Chart 1 shows how the JCM works. Why JCM? The Clean Development Mechanism (CDM) has been serving as an incentive to mobilize private investment associated with low carbon development. However, the mechanism is also considered difficult and cumbersome to implement, because of the complex and long process necessary to get the approval of CDM administrators as well as the requirement for “additionality”. As a result, CDM is not necessarily considered as serving efficiently for those countries that require it most. To mitigate climate change, it is imperative Investment-Innovation-Productivity
  • 15. 28 29 • INTERVIEW that GHG emission reduction is implemented by all countries in the world. Therefore, it is of utmost importance to create a new mechanism that can complement CDM in order to achieve their goals. both governments, plays a significant role in administering the mechanism. The JC develops rules and guidelines, approves the proposed methodologies, designates the third-party entities (TPEs), registers JCM projects, and finally decides the amount of credits to be issued. The first JC meeting for Indonesia was held in October 2013 in Jakarta. How does JCM operate? • INTERVIEW TPE is supposed to validate the proposed projects and verify the amount of GHG emission reductions or removals. The role of each government is to issue the credits to its registry, based on the notifications from the Joint Committee. The diagrams (chart 2, 3) show the basic concept of the operation of JCM, while some details of its operation can vary depending on the conditions of the partner countries. Under JCM, the Joint Committee (JC), which consists of representatives from Photo: 1st Joint Committee between Indonesia and Japan (Oct 16-17, 2013) Japan Government • Issuance of credits •Request issuance of credits Project Participants • Implementation & monitoring of projects Joint Committee •Notifies (Secretariat) registration of projects • Develops/revises the rules, guidelines and methodologies •Reports • Registers projects issuance of • Discusses the credits implementation of JCM Host Country •Notifies registration of projects •Reports issuance of credits Government • Issuance of credits DOC. JAPAN EMBASSY (Subject to further consideration and discussion with host countries) Conduct policy consultations •Request registration of projects •Submit PDD /monitoring report Third party entities •Inform results of validation /verification • Validate projects • Verify amount of GHG emission reductions or removals chart 2. Basic scheme of the JCM •Request registration of projects •Submit PDD /monitoring report •Inform results of validation /verification Interested parties can find related information including rules and guidelines adopted by Joint Committee on “New Market Mechanism Platform” website http://www.mmechanisms.org/e/initiatives/ index.html •Request issuance of credits Project Participants • Implementation & monitoring of projects What are the features of the JCM? JCM is basically designed using CDM as its main reference, but it is intended to be more simple, practical and flexible as you can compare in chart 4. For example, a JCM project is validated based on eligibility criteria, whereas in CDM case a project must be assessed concerning its additionality. The criteria are defined in the methodology approved by the Joint Committee, and describe requirements for e.g. energy efficiency of the products to be used. By using the eligibility criteria, we can simplify the validation process and reduce the risks of rejection of the projects. Besides, in order to reduce monitoring burden, default values can be widely used in a conservative manner. JCM starts as a non-tradable credit type mechanism. Hence, credits cannot be traded internationally for the time being. However, the governments of Japan and Indonesia will closely monitor and discuss the mechanism to move into transition to a tradable credit mechanism at the earliest possible time, taking into account the overall situations and experience of JCM implementation as it progresses. Projects qualified for JCM In the case of CDM, projects in some sectors such as energy-saving home electronics and highly efficient coal-fired power generation are difficult to implement. JCM is expected to Investment-Innovation-Productivity Governance JCM - “de-centralized” structure (Each Government, Joint Committee) CDM -“centralized” structure (CMP, CDM Executive Board) Sector/project Coverage - Broader coverage - Specific projects are difficult to implement in practice (e.g. USC coal-fired power generation) Validation of projects - In addition to DOEs, ISO14065 certification bodies can conduct - Checking whether a proposed project fits eligibility criteria which can be examined objectively - Spreadsheet are provided - Default values can be used in conservative manner when monitored parameters are limited. - Only DOEs can conduct - Assessment of additionality of each proposed project against hypothetical scenarios - The entity which validated the project can conduct verification - Validation & verification can be conducted simultaneously - In principle, the entity which validated the project can not conduct verification - Validation & verification must be conducted separately Calculation of Emission Reductions Verification of projects - Various formulas are listed - Strict requirements for measurement of parameters chart 4. Key features of the JCM in comparison with the CDM cover a broader scope of projects than that of CDM. While JCM projects are to be decided by the Joint Committee, projects for energy-efficiency, renewable energy and REDD+ are expected to qualify for JCM in Indonesia. We are now working to determine the necessary rules and guidelines for a smooth and efficient implementation of the JCM between Indonesia and Japan. Therefore, no project has been approved yet under the JCM with Indonesia. However, many Japanese companies have been conducting feasibility studies or pilot activities on potential JCM projects with Indonesian partners. Investment-Innovation-Productivity Future Expectation In Japan, there are a number of companies that can contribute to low carbon growth in Indonesia with leading technologies. I am certain that the implementation of the JCM will contribute to more investment and further dissemination of low carbon technologies from Japan to Indonesia. The JCM with Indonesia has just begun and we still have much work to do. But I am convinced that the JCM will lead to win-win cooperation between our two countries that will contribute to the global strives for climate change mitigation.•
  • 16. 30 31 • FORUM GRUP DISCUSSIAN Jusman Syafii Djamal • INTERVIEW chairperson of Matsushita Gobel Foundation (MGF) Industries should be the driving force Trained in Aeronautical Design Technology, Jusman Syafii Djamal joined the National Team for the Evaluation of Transportation Safety and Security in 2007. This has brought him to a position as Minister for Transportation (2007 – 2009) in President Susilo Bambang Yudoyono’s first term Cabinet. His scientific background led him to being named a member of the National Innovation Committee (KIN) by the government in 2010. Jusman is currently the Chairperson of Matsushita Gobel Foundation (MGF) and serving as a Chairman of the Board of Commissaries with P.T. Telkom. Indonesia. On behalf of MGF, Jusman enthusiastically shared his views on climate change issues, green economy and energy resilience. He looked at Indonesia’s challenges in climate change issues and its impacts on the country’s current and long-term socio-economic development. He shares the world scientific community’s views that global warming caused by modern human activities is the real culprit of climate change. Climate change is real and has to be dealt with seriously by the entire global community before it become irreversible and disastrous to the planet and the human civilization. In addition to climate change, Indonesia is also faced with the depletion of oil and other fossil-based energy sources. Industries, therefore, are expected to use more environment–friendly energy. Investment-Innovation-Productivity SOF Investment-Innovation-Productivity
  • 17. 32 33 • INTERVIEW • INTERVIEW We as a nation need to transform ourselves into a green economy with more innovation, higher productivity and achievements. SOF How do you see role of the industry in coping with the challenges on environmental preservation and energy resilience? Industries, especially the energy intensive ones, have been using a great deal of the energy supply available on the planet. Their productive activities have left huge carbon prints causing damages to the environment and global warming. It is only natural that they must play an important role in the country’s and global efforts in curbing the excessive CO2 emission to avert the global climate catastrophe associated with climate change. Industries must be one of the driving forces in the government’s efforts to mitigate climate change. They should position themselves as a partner to the government in many respects to help achieve the goals of the national climate change mitigation programs. Industries’ involvement in the programs could be in the area of environment preservation and in the national endeavors to ensure energy security and resilience Industries’ business strategies and operations must be aligned to the national government’s programs of green economy transformation to reap the maximum benefits for the people of Indonesia. Industries must nurture innovations to improve low carbon productivity. This will include using more renewable energy to reduce CO2 emissions caused by burning fossil fuels. The Agro industry sector should undertake more intensive research and innovation to improve food productivity and enable national and global food resilience, as global warming is seriously disturbing global food productivity and posing clean water supply challenges in many part of the world, especially in developing countries. Rapid urbanization in developing countries also put pressure on food productivity and clean water supply systems, as more and more land are being converted into housing and urban facilities. All of these require industries to realign their operating strategy to support the national government‘s climate change mitigation programs and undertakings. What should the government accomplish by the transformation into green economy? One of the important things the Investment-Innovation-Productivity government should do is to prevent and protect the people from consuming products and services, ether those produced domestically or imported ones, that are produced not in compliance with green economy requirements. This could be accomplished through strong policy and effective regulations which ensure all economic sectors’ compliance to the green principles. I believe that it is much better to serve our national interests by filtering nongreen products produced or imported using green criteria, rather than spending tax-payers’ money for various measures to protect environment and the people’s health. Protection against the flow of nongreen products could be accomplished through various non tariffs barriers to prevent unwanted products entering the domestic market. This kind of measure may become the only option that the national government could use in the near future to protect national markets against foreign products, as regional economic integration is the clear trend of the future. Regional integration treaties compel national government to open the country’s market by allowing free and open market mechanisms to prevail. Another aspect of domestic market protections against the flow of non-green products is imposing National Industrial Standards to products and services traded and distributed in the domestic market. The government must ensure that the products and services meet the national standards. But establishing such national standards will take time and face great challenges as Indonesian industrial system is still overwhelmingly characterized by import substitution. The MGF is collaborating with JICA and the DNPI to hold regular discussions and workshops on climate change and other green issues. What do you expects from such events to help create public awareness on climate change issues? I find that holding regular discussions is an excellent way to exchange knowledge, experience and best practices among stakeholders about climate change and green economy. We invite participants from various background and expertises to share views and build up useful networks to create common awareness and understanding about climate change and the compelling need to green economy transformation. Through the for a hope to narrow gaps between (academic) knowledge about climate change and green issues and Investment-Innovation-Productivity the need to get programs effectively implemented on the ground, and hope along the way to find best solutions and benchmark in meeting the challenges. We hope through our discussions, that experts will share their scientific findings and professional experience to government and practioners and the government will better explain its policies and regulations to other stakeholders, all aimed at improving solutions to solve the common problems associated with climate change. We also hope the discussions will inspire participants to be more committed to the cause of climate change mitigation and have better impacts in their respective capacity in meeting the common challenges.•
  • 18. 34 35 • INTERVIEW • INTERVIEW Atsushi Sasaki Chief Representative of Japan International Cooperation Agency (JICA) DOC.JICA JICA: Combating Climate Change Needs Involvement of All Citizen Investment-Innovation-Productivity Climate change is already happening now. We can increasingly see, feel and experience it all over the world. Experts say mitigation may be too late now as the window of opportunity for keeping the global warming at acceptable levels is nearly closed, while the world community is failing to come to a real consensus about how to tackle it. Mr Atsushi Sasaki, Chief Representative of Japan International Cooperation Agency (JICA) to Indonesia, shared his opinion to GREEN about the common challenges being faced by the world, particularly in what a country like Indonesia could do best to address climate change. In the perspective of a donor organization like JICA, how do you see Indonesia’s challenges in dealing with the climate change? Firstly, I think that the international community highly appreciates the efforts being made by the government of Indonesia in setting the target of GHG emission reduction by 26 percent on its own and up to 41 percent with international assistance, both compared to the state of BAU (business as usual). With these efforts Indonesia is moving toward greening its economy. But I understand it is not an easy task to promote the green economy while the country is making significant economic growth that might absorb a large amount of conventional energy in the process. With such pace of economic development, lifestyles are focused on keeping up with the elements of modernity, and that demands more conventional energy use. I also understand Investment-Innovation-Productivity that it is not an easy task to cope with the prevalent natural disasters in the country, many of which can be directly associated to climate change. In my opinion, the government of Indonesia needs not only to develop policies and plans in dealing with the problems, but also need to implement them effectively and with adequate fiscal support. In this respect, I observe that the government of Indonesia has already
  • 19. 36 37 • INTERVIEW economic growth, job creation and green development, we could use the good example of national parks; some national parks in Indonesia are working to preserve the natural environment, providing added value which enables them to promote eco-tourism. In addition, Indonesia has a large potential in developing renewable energy such as geothermal and hydropower. The development of these resources will contribute to not only addressing climate change issues but also promoting economic development and employment through fostering local industries and the sustainable supply of power. DOC.JICA Indonesia’s forest and peat land area is the one of the largest in the world, and Indonesia possesses some largest renewable energy sources in the world. developed policies and plans, and the issue now is how to implement them seriously and consistently together with all stakeholders. How should Indonesia create conducive conditions for the industrial sector to motivate them to do what it is necessary to mitigate climate change? Allow me to share Japan’s experience in coping with the challenges to meet its energy needs. After the oil crisis in 1973, Japan, with a very low energy selfsufficiency rate, started to consider more seriously about how to use energy as efficiently as possible. The government of Japan engaged in dialogue with the private sector, promoted energy saving policies that resulted in the manufacturing of energy efficient products with high international competitiveness. Through the implementation of the government policies to combine restrictions with fiscal incentives for energy efficient products and processes, a high level of energy efficiency has been realized in most of Investment-Innovation-Productivity industrial facilities as well as products such as automobiles, home appliances, etc. Taking Japan’s experience into account, Indonesia might be advised to develop and implement similar policies to those of Japan based upon dialogue with the private sector. The strong leadership of high-level government officials is essential; otherwise, the ministries and agencies concerned may not easily agree on setting policies as in many cases they may have different opinions. The industrial sector apparently plays an important role in transforming the current economy into a green one. Which industrial sectors do you think should be involved to help Indonesia optimize efforts in dealing with climate change issues, while at the same time produce added value to the economic growth, keep the environment clean and help create more jobs? To tackle the complex issue of climate change, we need to involve all people; they must have their own roles in addressing the issue. When we think of balancing There have been some anxieties among national and international communities about the continuity of efforts in GHG emission reduction in the long-run, especially with the imminent political transition from legislative and presidential elections in 2014. What is your opinion about it? I believe that the importance of addressing climate change issues is well recognized and understood by all Indonesian leaders, and that they know what to do domestically as well as what kind of role this country should play in the international society. • INTERVIEW develop policies associated with climate change mitigation and adaptation, and providing assistance in implementing the policies. In the context of clean energy development, JICA is provides support to improve the system of geothermal power development as well as developing advanced technology of bio-energy applicable to Indonesia through the practice of joint researches. We realize that developing renewable energy takes a relatively long time. In that respect, JICA supports the development of a high efficiency (super critical) coal power plant, which enables the effective use of abundant coal resources, and the promotion of utilizing cutting-edge technology such as carbon capture and storage. These activities are expected to help Indonesia realize green economy with stable electricity supply and optimal energy mix. How do you see the role of mass media in Indonesia to support the implementation of green economy? It is absolutely necessary to increase people’s awareness of the environment and climate change issues to promote green economy, and of course the role of mass media is indispensable. It will take a long time to increase the awareness of the people, but unfortunately the issues of environment and climate change are not always attractive subjects to be covered by mass media. In this regard, those who provide information to mass media must do their best to make it attractive to people; at the same time, taking into account social significance, mass media should be urged to cooperate with sources of such relevant information. What do you expect from Indonesia’s role in global climate change mitigation? Indonesia’s forest and peat land area is one of the largest in the world, and Indonesia possesses some of the largest renewable energy sources in the world. With the world’s fourth largest population as well as its high economic growth rate recently, it is no doubt that the core country in ASEAN is Indonesia, whose policies have impact significantly on the world. I expect Indonesia to play a leading role in addressing climate change issues, and JICA will continue to work together with people in Indonesia in a variety of sectors related to climate change.• There have been ideas among experts and intellectuals about the imminent need of having a national law on climate change in line with the global context of mitigation of and adaption to climate change. Do you support such an idea, particularly in the Indonesian context? In my opinion, it is more important that the leaders are highly committed and engage into serious actions to combat climate change, and motivate all citizens to support the actions at their own capacity, rather than having a law or not. Do you see an encouraging development in green initiatives in Indonesia, and how do you think JICA could do to support these? We are happy to support and contribute to Indonesia’s green initiatives. We are doing this for example by supporting the development of Mass Rapid Transportation (MRT) systems in Jakarta, the introduction of innovative public transportation system and the development of infrastructure with cutting-edge technology. JICA is also supporting various ministries within the government of Indonesia to DOC. JICA Investment-Innovation-Productivity
  • 20. 38 39 • INTERVIEW • INTERVIEW The Nusa Dua Commitment declared by the Indonesia Editor in Chief Forum ( IECF) on June 14, 2013, at Nusa Dua, Bali, is to remind mass media in Indonesia on the importance of building a strong Indonesia in all respects of a modern civilized state. The Forum produced nine commitments related to the needs of addressing the environmental and energy issues properly and effectively. IECF, established on July 19, 2012, represents almost all Indonesian Editor in Chief of Printed and Electronic media, pledged support to the national efforts in preserving the environment, in maximizing renewable energy development and deployment, and in energy conservation through energy efficiency actions to achieve national security. All of these efforts should be consistently and effectively implemented to foster national sustainable and equitable development . By making the commitments, the Forum shows mass media’s serious concerns on the issues of climat change mitigation an adaptation as well as on the imminent global energy crisis that could pose a serious threat to the global sustainability. The Forum also appreciates the initiatives taken by the National Council for Climate Change (DNPI) in collaboration with Matsushita Gobel Foundation and Japan International Cooperation Agency (JICA) to hold Focus Group Discussions on the issues of climate change and green economy and for inviting the IECF to participate in the discussions. At the Bali gathering, Nurjaman Mochtar, Chairman of IECF who is also the Editor in Chief of two major TV channels, SCTV and Indosiar, shared his thoughts on those issues and on the strategic role of mass media in publishing and providing ‘checked and balanced’ information concerning the progresses of the national and global efforts in coping with the issues. IST Nurjaman Mochtar Chairman of Indonesia Editor IN CHIEF Forum (FORUM PEMRED) Mass Media Should Expand Climate Change and Green Economy COVERAGE Investment-Innovation-Productivity What are IECF standpoints in dealing with the issue of climate change? Our standpoint is clear that in coping with this global issue, stakeholders need to think and work together to solve the problems . It is undeniable to all of us that human activities are causing environmental damages which lead to global warming and climate change. We are also witnessing strong indications of the growing uncertainty in the global climate pattern which triggers increasing prevalence of serious natural disasters. When we talk about green investment we should see it not only as a measure to avert the negative impacts of climate change, but we must also see its potentials of producing benefits for sustainability. Therefore mass media must endeavor to see all aspects of measures taken by stakeholders, be it government, private sector or nongovernment organizations. Do you see that concrete steps have been already taken to solving the problems? Sure, I saw concrete steps that have been taken by the government and other stakeholders to address the issues of climate change, though frankly I would like to see more serious and consistent Investment-Innovation-Productivity measures be taken particularly by the government to spur all stakeholders to engage in climate change mitigation and adaptations acttivities. The government strategic plan stated in the RAN-GRK must be implemented consistently At the Bali gathering the Forum agreed along with all related stakeholder to mitigate the on-going damage to the environment by taking the necessary actions in our own capacity to remedy such damages and to prevent such damages from reoccurring. Unfortunaely there are many concepts and terminology used to discuss the
  • 21. 40 41 • INTERVIEW • INTERVIEW I believe that in this respect the mass media should excersise their role objectively and in responsible ways in line with the principles of press freedom that we enjoy today. DOC. JICA climate change issues that the general public may not comprehend those technical jargons, which preclude them from understanding the whole matters. Climate change is a multisectoral issue, so we need to involve all relevant sectors to find the solution to the problems. It is the mass media’s primary role and responsibility in diseminating the information as reliably and as accurately as possible to the public. The mass media should strive to encourage the public to take relevant actions which could contribute to mitigating the impacts of climate change of the government efforts to mitigate the the impacts of climate change. Mr. Rachmat Gobel of Panasonic Indonesia is among the ones who give full support to green economy transformation. I saw representatives of industrial sectors actively participate in many discussions at national and international forums including the FGD initiated by DNPI, Matsushita Gobel Foundation and JICA. Again, in this respect I see that mass media should play its genuine role in informing the public about the strategic role of industries in helping to solve the climate change problems. I believe that in this respect mass media should excersise their role objectively and in responsible ways in line with the principles of press freedom that we enjoy today thanks to the democratic system that our country follows. For example, the industry, particularly the energy sector, should be more active in making the country less dependent on fossil fuels. But the government should give industry ample opportunities and the necessary incentives to drive the private sector to developing healthy renewable energy businesses. Other industries should respond by improving their energy efficiency measures and reduce GHG emissions How about the role of industrial sector to Green Economy transformation? We have spoken with many businessmen in Indonesia about climate change, and I believe that they are in support I belive that one of the options the Investment-Innovation-Productivity government could take in providing incentive to public and private sectors, is to present awards to companies that distinctly contribute to greening the economy. Such awards are inspiring, and educate other businesses to apply the same principle. Mass media can help herald such award winning companies to stimulate others to follow the good examples. How do you respond to the view by some environmentalists and green observers that Mass Media is less interested in covering climate change issues? I think that the view is not entirely correct. Though it should be admitted that not all medias have given enough space in their publication for discussing the issues, generally mass media do not refuse to cover climate change issues. To improve and expand the coverage, I think the sources also have to improve the quality of their information to entice the press to cover it in their publications. In this respect I think the Nusa Dua commitment is clear enough in its aim to remedy the negative views about mass media’s lack of interest in climate change issues. should respond to the climate issues, of course within their respective capacity. Besides, climate change issues may be seen as less important by the Indonesian press mainly because the news sources fail to make it attractive for example, the issues of green investment and renewable energy. Nevertheless, on behalf of IECF, I’d like to invite everybody who are concerned about “green issues” to engage the mass media to help dissiminate the information to the public. We are always open to discuss the issues with anyone seriously concerned about it. We hope that the current global trend in the development clean technology and green economy transformation will continue well into the end of this century to provide a solid ground for building low carbon society and save the planet. What do you think of the global initiatives in addressing the climate change? To address the problems of climate change we need global commitment and concrete supports by all members of the global community. The green Investment Program is one of the many strategic steps to be taken by the global economy. An appeal by concerned businessman like Rachmat Gobel to scale up green invesments is obviously a good example of how members of the community Do you have an important message to convey to our readers? We wish to see much clearer clear blue prints of how the government will address the climate change issues. We also want see all government policies and measures in this context be implemented effectively and on consistent basis to make real impacts to the causes. In the next national congress that we hope to hold in December 2013, IECF will focus on the direction of the national sustainable and equitable developments toward celebrating the 100th anniversary of Indonesia Independence. We expect to cover the long term strategy for national development, including the handling of the climate change.• Investment-Innovation-Productivity
  • 22. 42 43 • GREEN INSIGHTS • GREEN INSIGHTS Advancing Low-emission, Climate-resilient Development Across Asia Doddy S. Sukadri and Sandra Khananusit Doddy Sukadri is a member of the Indonesia National Council on Climate Change and is Co-Chair of the Asia Low Emission Development Strategies (LEDS) Partnership. Sandra Khananusit serves as part of the Asia LEDS Partnership Secretariat. SHUTTERSTOCK Background Asia, a continent consisting of 46 countries with a population of more than 4.2 billion people, or about 60 percent of the global total1, has experienced the fastest economic growth of any region in the world in recent decades. With the exception of several developed countries, notably Japan, Asian countries are undergoing rapid economic growth and industrialization, contributing to improved living standards and a better life for millions. About fifty percent of Asians live in cities and over the next 30 years Asian cities will grow by another 1.1 billion people.2 However, characterized by exposed land areas—such as islands, deltas, coastal regions, and steep slopes—and rapid urbanization leading to high population densities, many Asian 1 “World population”, Wikipedia. http://en.wikipedia.org/wiki/World_population 2 “Accessing Asia: Air Pollution and Greenhouse Gas Emissions from Road Transport and Electricity”.http://cleanairinitiative.org/portal/node/11573. Investment-Innovation-Productivity Investment-Innovation-Productivity
  • 23. 44 45 • GREEN INSIGHTS To avoid the worst impacts of climate change, such as more extreme weather, reduced agricultural productivity, and rising sea levels, GHG emissions must be cut in half by 2050. Yet they are expected to double in that time frame without concerted global action. Source: International Energy Agency, Tracking Clean Energy Progress, Energy Technology • GREEN INSIGHTS What is the goal of the Asia LEDS Partnership? To advance the development of country-led strategic plans to promote economic growth while reducing GHG emissions—without causing unintended adverse trade-offs to other environmental pressures—in the Asia region. SHUTTERSTOCK What are Low Emission Development Strategies, or LEDS? LEDS are country-led strategic planning frameworks to promote climate-resilient economic growth while simultaneously reducing GHG emissions over the long-term. LEDS carries the same general meaning as low-carbon development strategies, low-emission climate-resilient development strategies, and green growth strategies. While LEDS focus on reducing GHG emissions, effective LEDS frameworks should work to ensure that climate resilience and adaptation are fully considered in near- and long-term planning. cities and countries are now more vulnerable to the impacts of climate change. In many countries substantial gaps exist between the rich and the poor, with a significant number of people still living in poverty. In addition, economic trends have led to an increased demand for electricity and transportation. As a result, air pollution is worsening and greenhouse gas (GHG) emissions are rising rapidly. The Big Challenge: Closing the Emissions Gap An Intergovernmental Panel on Climate Change special report indicated that for more than a decade, the increasing rate of CO2 released into the atmosphere has reached a point that is dangerous to both human well-being and continued economic growth.3   A continuing concern over an “emissions gap” was expressed at the 2012 United Nations Climate Change Conference in Doha, when Parties of the United Nations Framework Convention on Climate Change (UNFCCC) agreed on the need for urgent action “…towards the deep reduction in global greenhouse gas emissions to hold the increase in global average temperature below 2°C above pre-industrial levels and to attain a global peaking of global greenhouse gas emissions as soon as possible.”4 At the 2013 UNFCCC Bonn Climate Change Conference in June, Parties continued to discuss how to close the emission gap. At the climate change workshop organized by UNFCCC, Ron Benioff, Director of the Low Emission Development Strategies (LEDS) Global Partnership, addressed this issue with his presentation “LEDS Global Partnership: Advancing Climate-Resilient Low- 3 Carbon Dioxide Capture and Storage. Intergovernmental Panel on Climate Change (IPCC), 2005.  4 United Nations Framework Convention on Climate Change. Ad Hoc Working Group on Long-term Cooperative Action under the Convention. Fifteenth session, part two, Doha, 27 November 2012. http:// www3.unog.ch/dohaclimatechange/sites/default/files/FCCC_AWGLCA_2012_L.0004_ENG.pdf Investment-Innovation-Productivity Emission Development around the World”.5 He shared experiences over the past two years working with 116 countries on how LEDS could help countries decouple economic growth from emissions and resource use. He presented examples on how LEDS could be a viable path forward, supporting economic growth by creating new jobs, fostering sustainable production, and creating new green businesses, while at the same time reducing carbon emissions and reducing poverty. Developing Asian countries face a challenge of achieving sustainable economic development and improving living standards, while simultaneously reducing the rate of growth in GHG emissions. Low-carbon, climate-resilient development, commonly described as “green growth”, is viewed as the most effective means of meeting both objectives. Low emission development strategies provide strategic planning, analytical, and policy processes to promote economic growth while achieving significant, long-term emission reductions in key sectors. The Asia LEDS Partnership The LEDS Global Partnership encompasses three regional platforms—in Asia, Latin America, and Africa—all of which aim to strengthen and support capacities, learning, and coordination of LEDS and green growth activities at the country, regional, and global levels. The Asia LEDS Partnership is the largest 5 United Nations Framework Convention on Climate Change. Ad Hoc Working Group on the Durban Platform for Enhanced Action. Second session (ADP 2), Bonn, Germany, 29 April – 3 May 2013. Workshop on Low-emission Development Opportunities, Tuesday, 30 April, 2013. http://unfccc.int/files/bodies/awg/application/pdf/adp2_workshop2_leds_30042013.pdf regional platform of the LEDS Global Partnership in terms of its membership. The Asia LEDS Partnership was launched in September 2012 at the first Asia LEDS Forum in Bangkok, Thailand, which convened more than 170 representatives from 17 Asian governments, regional and international development organizations, nongovernmental organizations (NGO), businesses, and others active in LEDS in Asia. At the Forum, participants helped to catalogue progress, prioritize regional needs, and identify collaborative activities to achieve a vision of Asia as a region of robust economic progress and low GHG emissions, with countries adopting and implementing LEDS and green growth practices across all sectors. Currently, representatives from over a dozen Asian countries are actively engaged, as well as numerous international partners and NGOs. The objectives of the Asia LEDS Partnership are four-fold: (1) to facilitate enhanced collaboration among those actively engaged in LEDS in the region, including working to maximize results while minimizing duplication; (2) to identify and disseminate tools, models, approaches, and best practices in priority LEDS topics to enable application across the region; (3) to foster capacity building of practitioners to make Asia a leader in designing and implementing LEDS and green growth; and (4) to strengthen support for LEDS across Asia by catalyzing leaders of change and raising awareness about the benefits and methods of promoting LEDS. One of the primary mechanisms to achieve these objectives is regional peer-to-peer exchange on experiences and lessons in fostering LEDS. Asian countries are implementing a wide variety of policies and initiatives that support low-emission growth, and Investment-Innovation-Productivity