Buku Pedoman Pelaksanaan Rencana Aksi Penurunan Emisi GRK English

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REFERENCE BOOK

GUIDELINE FOR

IMPLEMENTING

GREEN HOUSE GAS

EMISSION REDUCTION

ACTION PLAN

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Guideline for Implementing

Green House Gas Emission Reduction

Action Plan

Translated English Version

MINISTRY OF NATIONAL DEVELOPMENT PLANNING/ NATIONAL DEVELOPMENT PLANNING AGENCY

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TEAM OF AUTHORS

Advisor

Prof. Armida S. Alisjahbana

Minister of National Development Planning/ Head of Bappenas

Editor

Endah Murniningtyas

Deputy for Natural Resources and Environment, Bappenas

Coordinator

Wahyuningsih Darajati

Director for Environment, Bappenas

Writers

Syamsidar Thamrin, Heiner von Luepke, Herman Haeruman,

Saut M. Lubis, Arimbi Jinca, Ko Sakamoto, Anandita Laksmi Susanto, Mariati Abdul Kadir, Yuliana C. Wulan, Philippe Guizol, Novita Sari,

Dea Raika, Philipp Munzinger, Anja Rosenberg, Saut Sagala, Luti Lesilolo

Technical Support Team

Indra Ni Tua, Citara Nayla Iqbal, Amin Budiarjo, Jakfar Hary Putra, Riga Anggarendra

Administration Team

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ACKNOWLEDGEMENTS

We would like to extend our gratitude to all staff at the Deputy Ofice for Natural Resources and Environment of Ministry of PPN/Bappenas for technical facilitation support in the guideline development.

The development of the General Guideline for Green House Gas Emission Reduction Action Plan is supported by Deutsche Gesellschaft fuer Internationale Zusammenarbaeit (GIZ) through Proyek Study and Expert Fund for RAN-GRK and ICCTF Support in cooperation with Agence Francaise Developpement (AFD). Such support is deeply appreciated.

The document development process is made possible through closely-fostered partnership support from various institutions along with high dedication performed by the following stakeholders:

1. 1. Ministry of Environment 2. Ministry of Forestry

3. Ministry of Energy and Mineral Resources 4. Ministry of Industry

5. Ministry of Transportation 6. Ministry of Agriculture 7. Ministry of Public Works 8. Ministry of Finance 9. UKP4

10. DKI Jakarta Province 11. West Java Province 12. Central Java Province 13. East Kalimantan Province 14. South Sumatera Province 15. North Sulawesi Province 16. ICRAF

17. FORDA 18. JICA 19. ICCTF

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List of Abbreviations

ACERS : Abatement Cost of the Emissions Reduction Scenario

APBD : Local Budget

APBN : State Budget

BAU : Business As Usual

Bappenas : National Development Planning Agency

BLU : Public Service Agency

CSC : Cost of Saved Carbon

DAS : Watershed

EPR : Extended Producer Responsibility

ERS : Emission Reduction Scenario

GHG : Greenhouse Gas

GRK : Gas Rumah Kaca (Green House Gas/ GHG)

ICCSR : Indonesia Climate Change Sectoral Roadmap

IPCC : Intergovernmental Panel on Climate Change

KAK : Term of Reference

KPH : Forest Management Unit

KPS : Government and Private Sector Cooperation

LULUCF : Land Use, Land Use Change and Forestry

MDGs : Millennium Development Goals

MRV : Measurement, Reporting, Veriication

NAMAs : Nationally Appropriate Mitigation Actions

NPV : Net Present Value

NSPK : Norms, Standards, Procedures, and Criteria

OPD : Local Government Organization

PDB : Gross Domestic Product

PP : Government Regulation

RAN-GRK : National Action Plan for Green House Gas Emission Reduction RAD-GRK : Local Action Plan for Green House Gas Emission Reduction

REDD+ : Reducing Emissions from Deforestations and Forest

Degradation

Renstra K/L : Ministry/Agency’s Strategic Plan Renja K/L : Ministry/ Agency’s Work Plan

RKP : Development Work Plan

RKPD : Local Development Work Plan

RKTN : National Level Forestry Plan

RPJP Nasional : National Long-Term Development Plan RPJP Daerah : Local Long-Term Development Plan

RPJMD : Local Mid-Term Development Plan

RPJMN : National Mid-Term Development Plan

Renja SKPD : District Government Work Unit Work Plan Renstra SKPD : Strategic Plan of District Government Work Unit

SFM : Sustainable Forestry Management

TPA : Landill

UU : Law

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LIST OF FIGURES

Figure 1. NAMAs for Meeting National Emission Reduction Targets 5

Figure 2. Position of RAN-GRK in Development Planning System 10

Figure 3. RAN-GRK Implementation Time Frame 10

Figure 4. NAMAs Measures 17

Figure 5. Baseline Establishment 19

Figure 6. Four Pillars in Establishing Mitigation Actions for Each Sector 22 Figure 7. Scheme: Selection Process of Proposed Potential

Mitigation Actions 22

Figure 8. GHG Emission Reduction Plan 23

Figure 9. Work Flow Needed for Establishing Developing Countries’ NAMAs 26

Figure 10. Flow of Climate Change Policy Integration 29

Figure 11. Cross-Cutting and By-Sector Climate Change Policy

Integration 30

Figure 12. Indonesian Emission and PDG by Sector 31

Figure 13. Scope of Land-Based RAN-GRK Related to REDD+ 33

Figure 14. Measures for Estimating Abatement Cost Related to

Land-based Emission 38

Figure 15. National Mixed Energy Increase by 2025 41

Figure 16. Process needed to Develop Aggregated Baseline of the

Energy Sector (Bottom-up Approach) 43

Figure 17. CO2 Emission from Power System Connected to National

Network – RUPTL 2010-2019 47

Figure 18. Integrated Modelling for CO2 Mitigation Evaluation 50

Figure 19. CO2 Emission in the Transport Sector 52

Figure 20. Vehicles’ Growth Trend (ADB, 2006) 53

Figure 21. Example of Mitigation Actions in the Land Transport and

Rail Sectors 54

Figure 22. Process Integration for Aggregated Transport Baseline

Establishment 57 Figure 23. GHG Emission in the Industry Sector – BAU and Energy

Eficiency Scenarios from 2005 – 2030 60

Figure 24. Structure and Category of the Waste Sector 68

Figure 25. NAMAs and MRV 82

Figure 26. RAN-RAD-GRK in Sustainable Development Dimension 86

Figure 27. Synergy Relationship between RAN-GRK and RAD-GRK 87

Figure 28. Connection Framework between National-Local Document/

Policy and RAD-GRK (modiication from ICCSR, 2010) 89

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LIST OF TABLES

Table 1. Indonesia’s Nationally Appropriate Mitigation Actions

Presented to UNFCCC Secretariat on January 30, 2010 5

Table 2. GHG Emission Reduction Targets by Bidang (Meeting Results at the Coordinating Minister for Economy, Finance

and Industry (Ekuin) Ofice, December 29, 2009) 8

Table 3. Matrix of Unilateral NAMAs (Indonesian Case: 26% from

BAU in 2020) 24

Table 4. Matrix of Supported NAMAs (Indonesian Case –

Reduction Down to 41% in 2020) 25

Table 5. Example of MRV Indicators for Land-based NAMAs 37

Table 6. Measures Needed for Developing BAU Baseline for Each Power Plant Isolated from and Connected to National

Power Network 48

Table 7. Potential Mitigation Action Scenario 49

Table 8. Potential Key Indicators 51

Table 9. A-S-I (Avoid, Shift, Improve) Strategies 54

Table 10. Proposed Key Indicators 58

Table 11. Proposed Secondary Indicators 58

Table 12. Measures Towards NAMAs in the Transport Sector 59

Table 13. Examples of Industrial Technology Available for GHG

Emission Mitigation 63

Table 14. Baseline Development Process in the Waste Sector 71

Table 15. MRV Key Indicators for the Waste Industry 73

Table 16. Potential Financing Scheme for NAMAs

(Source: Situmeang 2010) 78

Table 17. Tasks and Responsibilities of Agencies Related to MRV

Based on Perpres No. 61 83

Table 18. Tasks and Responsibilities of Agencies Related to MRV

Based on Perpres No. 71 84

Table 19. Comparison of Division of Governmental Sectors-Affairs

Related to Green House Gas Emission Reduction Actions 90

Table 20. Connection between GHG Emission Reduction Sector on

RAN and Governmental Affairs Division 91

Table 21. Framework of Governmental Affairs Division 92

Table 22. Connection between GHG Emission Reduction Sector on RAN-GRK and Governmental Affairs Clasiication

(PP No. 41/2007) 94

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1. PREFACE

1.1 Background

The National Action Plan for Green House Gas Reduction (RAN-GRK) is a follow up from the Indonesian commitment to dealing with climate change issues as delivered by President Susilo Bambang Yudhoyono in his speech before state leaders at Pittsburgh G-20 Summit, USA, on September 25, 2009. President Susilo Bambang Yudhoyono stated that Indonesia is committed to reducing GHG emission by 26% in 2020 from the BAU level with its own efforts and reaching 41% reduction if it secures international support.

To follow up the GHG emission reduction commitment, the RAN-GRK was developed to provide a policy framework for the central government, local governments, prívate sectors, and other key stakeholders in implementing actions related directly and indirectly to GHG emission reduction efforts during the period of 2010-2020 according to the Long-Term Development Plan (RPJP 2005-2025) and the Mid-Term Development Plan (RPJM). The RAN-GRK was approved in a Presidential Regulation No. 61 Year 2011.

The RAN-GRK proposes mitigation actions in ive priority sectors (Agriculture, Forestry and Peatland, Energy and Transport, Industry, Waste Management) as well as other supporting actions that are an integral part to the national development planning which supports the principles of economic growth, poverty alleviation and sustainable development.

The RAN-GRK implementation embraces a participatory approach system in which activity participation of the central government, local governments and related stakeholders are badly needed for developing Local Action Plan for Green House Gas Emission Reduction (RAD-GRK) for the achievement of GHG emission reduction targets across Indonesia. Therefore, for the RAN-GRK implementation, it is necessary to develop a Guideline for Implementing Green House Gas Emission Reduction Action Plan.

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1.2 Guideline Goal

The Guideline for Implementing GHG Emission Reduction is a general guideline for Ministries/ Agencies, Local Governments (provincial, district, and city levels) with the objective to facilitateRAN/RAD-GRK implementation. The division of tasks which will be carried out under the mandate of Perpres no. 61/2011 is as follows:

1. Coordinating Minister for Economy is tasked with: coordinating the implementation and monitoring of RAN-GRK that is conducted by Minister/ Agency Head according to their respective task and function (article 5 paragraph 2); receiving reports on results of RAN-GRK review submitted by Minister of National Development Planning/ Head of BAPPENAS (article 9 paragraph 3); receiving reports on RAN-GRK action implementation conducted by Minister/ Agency Head periodically at least once 1 (one) year or at any time if required (article 10 paragraph 1); and reporting integrated RAN-GRK implementation to the President at least once 1 (one) year or at any time if required (article 10 paragraph 2).

2. Minister of PPN/Head of Bappenas receivesRAD-GRK documents enacted by Governor Regulation within 12 (twelve) months at the latest since the enactment of Presidential Regulation No 61/2011 (article 6 paragraphs 3 and 4); facilitating GRK development (article 7); establishing RAD-GRK Development Guideline within 3 (three) months at the latest since the enactment of Presidential Regulation No 61/2001 (article 8); coordinating RAN-GRK review implementation conducted by Ministry/ Agency and reporting the review results to Coordinating Minister for Economy with a copy to Coordinating Minister for People’s Welfare (article 9 paragraphs 2 and 3); receiving copied reports on RAN-GRK activity implementation conducted by Minister/ Agency Head (article 10 paragraph 1). To carry out the tasks, Minister of PPN/Head of Bappenas will form a National Working Group with membership from Ministries/Agencies at the central level, experts, Local Government’s representatives, as well as other stakeholders.

3. Minister of Home Affairs is tasked with facilitating RAD-GRK development with Minister of PPN/Head of Bappenas and Minister of Environment (article 7); receiving RAD-GRK documents enacted by Governor Regulation within 12 (twelve) months at the latest since the enactment of Presidential Regulation No 61/2011 (article 6 paragraphs 3 and 4). Then, together with Minister of PPN/ Head of Bappenas develops a Joint Circular as a call for Local Governments to implement RAD-GRK.

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administration guideline, coordinating GHG inventory administration and tendency of emission change and GHG absorption including carbon storage at the national level; carrying out monitoring and evaluation on the process and result of GHG inventory (article 7 of Perpres No 71/2011); receiving reports on inventory activity results administered by related Ministers and/or Agency Heads and/ or Governors once a year (article 12 paragraphs 2 and article 13 paragraph 2 of Perpres 71/2011); submitting results of national GHG inventory administration to Coordinating Minister for People’s Welfare; providing guidance in GHG inventory administration to provincial, district/ city governments and stakeholders together with Ministers and/or Agency Heads (article 17 paragraph 1).

5. Other Ministries/ Agencies according to their respective tupoksi (key tasks and functions) are tasked with: conducting the planning, implementation, as well as monitoring and evaluation of RAN-GRK (article 3 paragraph a and article 5 paragraph 1); conducting RAN-GRK reviews (paragraph 9 article 2); reporting results of RAN-GRK activity implementation reports to Coordinating Minister for Economy with copies to Coordinating Minister for People’s Welfare, Minister of PPN/Head of Bappenas and Minister of Environment periodically at least once 1 (one) year or at any time if required (article 10 paragraph 1). If needed, Ministers/ Agency Heads can establish Technical Guidelines for each of respective sectors.

6. Provincial Governments must develop Local Action Plans for Green House Gas emission Reduction (RAD-GRK) which are based on the RAN-GRK and local development priorities (article 3 paragraph b and article 6 paragraph 2) . the RAD-GRK encompasses GHG mitigation action plans from the provincial, district and city levels in each region.

7. Governors are tasked with: in their capacity as RAD-GRK coordinators, enact the Governor Regulation on RAD-GRK and submit RAD-GRK documents to the Minister of Home Affairs and Minister of PPN/Head of Bappenas within 12 (twelve) months since the enactment of Perpres no 61/2011 (article 6 paragraphs 3 and 4).

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2. NATIONAL ACTION PLAN FOR GREEN HOUSE

GAS EMISSION REDUCTION

2.1 Policy Framework

Based on the scenario in the Second National Communication report (SNC, 2010), the GHG emission reduction target by 26% in 2020 is 0.767 Gton CO2e. The target will increase by 15% (0.477 Gton CO2e) to become 41% GHG emission reduction if there is international funding support. However, the GHG emission reduction target scale will be recalculated more accurately by using better methodologies, data and information.

RAN-GRK development is part of the Long-Term Development Plan (RPJP) and the Mid-Term Development Plan (RPJM) in the sustainable development policy framework to address climate change impacts, especially to reduce GHG emission. GHG emissions are deined as emission resulting from nature and various development activities especially in the forestry, peatland, waste, agriculture, transport, industrial and energy sectors.

Besides that, the action plan is developed based on measurable, reportable and variable principles (Measurable, Reportable, Veriiable)1_{, so that the} results are nationally accountable and according to the principles to be applied by United Nations Framework Convention on Climate Change (UNFCCC) for mitigation actions implemented by state parties.

Indonesia also delivered information on Indonesia’s Nationally Appropriate Mitigation Actions (NAMAs) to the UNFCCC Secretariat via the Head of Indonesia’s National Climate Change Council (DNPI) on January 30, 2010. Seven key sectors were revealed to achieve GHG emission reduction by 26% in 2020 from the BAU scenario as baseline2_{as mentioned in Table 1 below.}

Table 1. Indonesia’s Nationally Appropriate Mitigation Actions Presented to UNFCCC Secretariat on January 30, 2010

1_{Discussion on MRV is on Chapter 6 Guideline for Implementation of GHG Emission Reduction Action}

Plan.

2 _{Baseline is estimated emission level and GHG projection under scenario without policy intervention and}

mitigation technologies from sectors identiied within an agreed period of time (years 2010-2020) (Chapter

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To reach the goal and targets it is necessary to develop several interventions and action plans which are adjusted to the climate change mitigation program policy that is implemented and supported by several Ministries/Agencies, as well as Local Governments.

Figure 1 shows the national targets. Table 1.

Indonesia’s Nationally Appropriate Mitigation Actions Presented to UNFCCC Secretariat on January 30, 2010.

Figure 1. NAMAs for Meeting National Emission Reduction Targets.

Nationally Appropriate Mitigation Actions Emission Reduction

The reduction will be achieved among them by the following actions:

1. Sustainable Peatland Management

2. Reduction of Deforestation and Land Degradation Levels 3. Carbon sequestration development

4. Promoting energy saving

5. Alternative and renewable energy resource development 6. Solid and Liquid Waste Reduction

7. Shift to low-emission transport modes

26% by 2020

T0 T1 Tn

-26%

-41%

2020 Year

GHG

National Baseline Business as Usual (multi-sectors/combined)

Integrated national process in meeting the national emission reduction targets based on cost effectiveness and applicability level

Uniliteral NAMAs supported domestically

Internationally supported

NAMAs

NAMAs Cr

edit

Past Trends and Current GHG Emission Situation

Future GHG Emission Plan

Based on the Copenhagen Accord and from the notes that were produced from a series of discussions on climate change in the 15th Conference of the Parties (COP)3_{for UNFCCC in Copenhagen, Denmark, in December}

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2009, it was agreed that global coherent mitigation actions are required to limit global warming by less than 2°C below pre-industrial level. To achieve that, it is necessary to realize GHG emission reduction by all parties, with a note that the implementation in developing countries must accord with social, economic development efforts and poverty alleviation.

Based on IPPC (Intergovernmental Panel on Climate Change) calculation, to reach the target, developing countries need to contribute to GHG emission reduction by 15 to 30% from BAU scenario. With this scheme, Indonesia’s growth plan will not be harmed and the GHG emission reduction target set by Indonesia suits IPPC-recommended range.

In the UNFCCC context, RAN-GRK is regarded as Indonesia’s voluntary efforts in GHG emission reduction since the Copenhagen Accord is not an agreement that binds the state parties. With its GHG emission reduction commitment, Indonesia hopes to demonstrate its leadership and become a driver for other countries, especially developed countries to reduce global GHG emission.

Indonesia’s Vision and Missions. On February 5, 2007, the Government

of Indonesia issued Law No. 17 year 2007 on the 2005-2025National Long-Term Development Plan. The sixth mission mentioned in the document becomes the vision of the RAN-GRK, namely to: “Realize Harmonious and Sustainable Indonesia”. The mission emphasizes efforts to improve development implementation management that can maintain a balance between making use of natural resources and protecting functions as well as environmental supporting capacity through spatial planning harmonious with settlement, socio-economy, and conservation efforts; to improve the sustainable economic use of natural resources and environment; to improve natural resource and environmental management to support quality of life; to provide life beauty and comfort; as well as to improve maintenance and use of biodiversity as basic developmental assets.

To achieve the sustainable development vision, the Government of Indonesia has taken an agreement that “long-term sustainable development will face climate change and global warming challenges that impact human life and activities”.

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The objective of the RAN-GRK is to act:

1. As a GHG emission reduction implementation reference by priority sectors at the national and local levels;

2. As a reference to investment related to GHG emission reduction coordinated at the national and local levels;

3. As a reference to GHG emission reduction action plan and strategy development by regions in Indonesia.

The legal basis used for the RAN-GRK development comprises: 1. The Indonesian 1945 Constitution, Article 4 paragraph (1); 2. Law No. 6 Year 1994 on UNFCCC Approval;

3. Law No. 17 Year 2003 on State’s Finance;

4. Law No. 17 Year 2004 on Approval on Kyoto Protocol on United Nation Framework Convention on Climate Change;

5. Law No. 25 Year 2004 on National Development Planning System;

6. Law No. 17 Year 2005 on 2005-2025 Long-Term Development Plan (RPJP);

7. Presidential Regulation No. 5 Year 2010 on 2010-2014 National Mid-Term Development Plan (RPJMN);

8. Presidential Regulation No. 61 Year 2011 on National Action Plan for Green House Gas Emission Reduction

In the RAN-GRK implementation, the roles of institutions responsible for GHG emission reduction activities in each sector and responsible parties for GHG emission reduction supporting activities are arranged. Beside that, it is necessary to determine institutions responsible for coordinating various things in the planning, implementation, monitoring and evaluation of the action plan.

2.2 Scope

According to article 2 of Presidential Regulation No. 61 Year 2011, RAN-GRK consists of key activities and supporting activities. RAN-RAN-GRK activities include sectors of Agriculture; Forestry and peatland; Energy and transport; Industry; Waste management; other supporting activities.

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Table 2. GHG Emission Reduction Targets by Bidang (meeting results at the Coordinating

Sector Emission Reduction Action Plan Implementing

(Giga tons Co2e) Ministry/Agency

26% 41%

Forestry and 0.672 1.039 Forest and land ire control, network Ministry of Forestry,

Peatland system management and water Ministry of Environ-management, Forestry and land ment, Ministry of rehabilitation, HTI (Industrial Plantation Public Works, Forest), HR (Community Forest). Ministry of Agricul-Illegal logging eradication, ture

Deforestation prevention, Community empowerment

Agriculture 0.008 0.011 Introduction of low-emission paddy Ministry of

Agricul-varieties, irrigation water eficiency, ture, Ministry of

organic fertilizer use Environment, Ministry of Public

Works

Energy and 0.038 0.056 Bio-fuel use, engines with higher fuel Ministry of

Trans-Transport eficiency standard, improvement in portation, Ministry

TDM (Transportation Demand of Energy and Management), quality of public Mineral Resources, transport and roads, demand side Ministry of Public

management, energy eficiency, Works, Ministry of

renewable energy development Environment

Industry 0.001 0.005 Energy eficiency, use of renewable Ministry of Industry,

energy, etc Ministry of

ment

Waste 0.048 0.078 Use of Final Landill, waste Ministry of Public

management by 3R and urban Works, Ministry of integrated waste water management Environment

0.767 1.189

The additional 15% with International support (Supported NAMAs) to the GHG emission reduction target bringing it up to 41% (from 26%) from BAU, is achieved by choosing additional program/ activities whose implementation does not utilize domestic funding sources such as APBN/APBD (including government’s debts) and is not for the reduction of GHG emission traded in the carbon market.

For GHG emission reduction of more than 41% from BAU, the implemented program/ activities may include a carbon trade mechanism scheme. (or credited NAMAs).

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To illustrate this idea, if REDD+ program/activities for particular locations are funded by APBN/APBD (including government’s debts), they are included in the Indonesian commitment to reducing GHG emission by 26%, while similar REDD+ program / activities in different locations receiving international funding support are within the GHG emission reduction target scheme of 41%. If REDD+ program/ activities are not related to the Indonesian GHG emission reduction targets of 26% and 41%, they can be traded in the carbon market.

Focus on international negotiation related to climate change will mostly be based on the framework of increased mitigation actions, adaptation and other key elements.

Concerning global mitigation policies and related key instruments, the negotiation covers issues of the entire emission reduction target setting and time schedule, emission reduction distribution among parties, inancial support and technology for mitigation actions, emission reduction instruments, emission trade systems and other market-based instruments.

Based on the Bali Action Plan (BAP), the latest international negotiations related to future climate management will consider NAMAs by parties for developing countries including the key elements such as:

(i) Driving sustainable development;

(ii) Supported and made possible by technologies, inancing and capacity building, and in measurable, reportable and veriiable manners.

2.3 RAN-GRK in Development Planning System

The Action Plan was developed based on the 2010-2014 Mid-Term Development Plan (RPJMN 2010-2014) and the 2005-2025 Long-Term Development Plan (RPJPN 2005-2025). The following Picture 2 shows the relationship between the RAN-GRK and the national and local development planning system.

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Figure 2. Position of RAN-GRK in Development Planning System.

Figure 3. RAN-GRK Implementation Time Frame.

RPJN 2005-2025 RP JMN

2010-2014

RP JMD

RKP

RKPD

APBN

APBD

RP JMN 2010-2014

RENSTRA SKPD

DEVELOPMENT PLAN

RPJP

RPJM RPJM 2 RPJM 3 RPJM 4 RAN - GRK

RP JMN 2010-2014

RENJA SKPD RAN

PENURUNAN EMISI

RAD PENURUNAN

EMISI

UNFCCC

RPJPD

2010 2020

2005 2025

2004 2009 2014 2019 2025

The 2010-2020 RAN-GRK implementation is divided into three time frames, starting from the Second National Mid-Term Development Plan (RPJMN) (years 2010-2014), continued by the Third RPJMN (years 2015-2019), and the Fourth RPJMN period (years 2020-2024).

Funding for 2010-2014 RAN-GRK implementation has been allocated in the 2010-2014 RPJMN. Subsequently, for the following years, RAN-GRK will provide policy direction for the government in GHG emission reduction with estimated cost/ budget (see picture 3).

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2.4 Problems and Challenges

Indonesia is the world’s biggest archipelagic country with more than 17,000 large and small islands and a long coastline. This has been the national asset. However, on the other hand it the country becomes a victim of the impacts of climate change.

Furthermore, Indonesia is extremely prone to various natural disasters due to its geographical position and geological condition. Moreover, most of the people’s livelihoods still depend on natural resources management, especially in the agriculture sector, which turns out to increase the level of risk of climate change impact threats.

With the above mentioned conditions, it is reasonable that Indonesia, as one of the prone countries, takes the front line in the global efforts to address climate change impacts. Besides this, there is huge potential insofar as conducting climate change mitigation actions should become a driving force for Indonesia to optimize its strategic position in various international forums, such as fostering bilateral or multilateral cooperations to face climate change impacts.

Efforts to deal with climate change impacts constitute an integral part of the national development, so that all planning must be in line with the national economic development planning. Thus, climate change adaptation and mitigation action planning are integrated into the national and local development planning (provincial, district/city and local).

Indonesia also has huge potential for reducing GHG emission signiicantly and cumulatively by 2020. Therefore, it is necessary to take into consideration sectors and programs that become priorities, the various costs (abatement cost) for each sector’s actions, and also to have tools to evaluateeconomic impacts against GHG emission reduction achievements; it is necessary to take into consideration that target for GHG emission reduction may increase if the scenario used is different; and it is necessary to develop GHG emission inventory and monitoring systems from all sectors.

The Forest and peat land sectors are estimated to have the biggest potential to reduce GHG emission with the lowest cost. However, several activities need to be carried out in order not to be trapped into BAU scenario and to obtain maximum results.

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instrumental. Beside that, cross-cutting issues need profound review so that mitigation actions may be effective and economical. Good understanding on cross-cutting cost reduction is important, but it is also necessary to observe challenges in the policy implementation of each sector thoroughly. Thus, an appropriate suite of policies will be achieved.

RAN-GRK was developed based on the program and activities of Ministries/ Agencies in 2010-2014 RPJMN and 2005-2025 RPJPN which would then be discussed by inter-Ministries/Agencies. All of the action plans are intended for reducing the national GHG emission by 26% in 2020 from the BAU scenario.

Climate change mitigation actions that become a priority are activities that use their own funding (Unilateral NAMAs), both from APBN or APBD (including loans), the private sector and the public, and must follow general criteria as follows:

1. The activities must be in line with sustainable development principles. 2. Being effective in fund use by applying lowest cost principle in reducing

GHG emission in an integrated manner.

3. Being practical in the implementation by considering political, social and cultural aspects.

4. Being in line with the national and local development priorities in which the activities are carried out.

5. Based on mutually beneicial principle by prioritizing development program/ activities that contribute to GHG emission reduction (Co-Beneit).

To ensure engagement with and ownership of RAN-GRK, action plan development is conducted by involving each Ministry/ governmental agency. Therefore, mitigation actions that become a priority within RAN-GRK will relect the vision and priorities of each Ministry/ state agency. The next step is for Bappenas to conduct process analysis and policy development for integration into the national development planning.

2.5 AN-GRK Review Process

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The national GHG emission level calculation based on BAU condition needs to be done accurately. For several sectors, re-evaluation needs to be done.

Therefore, it is necessary periodically to conduct RAN-GRK monitoring and review based on these considerations. RAN-GRK document renewal is also made possible based on the international negotiation results in the UN Convention on Climate Change (UNFCCC).

The goal of a RAN-GRK review is to:

• Secure international recognition (from UNFCCC) that Indonesia has met its promise to reduce GHG emission.

• Accommodate the latest information, developmental progress and negotiation results at the international level.

• Meet requirements to access international funds such as Green Climate Fund .

Furthermore, after the issuance of Prepres No. 61 Year 2011 on RAN-GRK, a review needs to be done to follow up various issues, namely:

• To date, there has been no baseline on the Business As Usual (BAU ) condition in Indonesia, while baseline establishment is vital in identifying how much GHG emission is successfully reduced through the mitigation actions that are executed. Moreover, to calculate the baseline, it is necessary to set GHG emission reduction targets correctly for related sectors.

• Baseline calculation must consider development plans from sectors related to GHG emission reduction and must be translated until 2020.

• Detailed calculation as a basis for supporting information to set GHG emission reduction targets for each sector within RAN-GRK is not available yet. However, the best way to calculate GHG emission allocation for each sector (target) is by irstly establishing a baseline; secondly, developing mitigation action scenarios (for example, to improve energy eficiency program, improve production process, or shift in use of industrial raw materials); lastly, calculating GHG emission reduction potential within the mitigation actions implementing period. In other words, if baseline setting is made the calculation basis for the impacts of GHG emission reduction actions, reasonable target igures for each sector may be obtained.

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• The policy direction set in RAN-GRK needs developing further into practical issues.

• There is no establishment of mitigation actions to reach GHG emission reduction target range from 26% to 41%.

• There is no monitoring system for RAN-GRK implementation, while to be able to be internationally recognized, Indonesia needs to submit a report that follows the MRV standard (Measureable, Reportable, and Veriiable)4_. For GHG emission reduction mitigation actions by 26%, the national MRV system is considered being already adequate, but the result still need consultation and analyzing according to the international standard. Meanwhile, for GHG emission reduction target ranging from 26 to 41%, Indonesia must possess an MRV system according to the international standard (UNFCCC). If designed, implemented and monitored properly, RAN-GRK will be recognized by UNFCCC as Indonesia’s oficial mitigation target that was presented on January 30, 2010.

The Ministry of National Development Planning/ Bappenas will conduct periodic coordination in the integrated RAN-GRK evaluation and review adjust it to the national needs and latest global developments. After that, the Minister of PPN/Bappenas will submit a recommendation for a RAN-GRK review to the Coordinating Minister for Economy who will determine changes on the Matrix of RAN-GRK Activities as mentioned in Annex of Perpres No. 61 Year 2011 on RAN-GRK.

The Sixteenth Conference Of Parties (COP) held in December 2010 in Cancun, produced deinitions related to categorization of NAMAs (Nationally Appropriate Mitigation Actions), namely:

• Unilateral NAMAs (Nationally Appropriate Mitigation Actions Supported by Domestic Financial Sources):

Mitigation actions carried out by a developing country independently to reach a particular GHG emission reduction level without any international support (other countries) based on UNFCCC framework UNFCCC. The inancing of this type of NAMAs comes from domestic inancial sources and focuses on cost saving and implementation of mitigation measures with low cost for per ton of carbon, especially for actions that speciically target ‘no regret’ option or have negative cost.

Indonesia already announced Unilateral NAMAs in 2009 by targeting national GHG emission reduction by 26% from BAU scenario in 2020. • Supported NAMAs (Nationally Appropriate Mitigation Actions that receives

international support):

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A developing country’s mitigation actions with direct support from developed countries as mitigation actions supported internationally based on UNFCCC framework.

Supported NAMAs consist of mitigation action options that require medium to high cost. However, results of the emission reduction action cannot be traded in carbon market with other countries to meet their commitment. In Indonesia, the action refers to national GHG emission reduction target range by 26% to 41% from Business As Usual (BAU) scenario.

• Credited NAMAs (Nationally Appropriate Mitigation Actions that Produce Carbon Credit):

A developing country’s mitigation actions that produce carbon credit for trading in carbon market which will be used as compensation (offset) for GHG emission reduction in developed countries.

Several examples of Credited NAMAs are, Clean Development Mechanism (CDM), voluntary carbon market project, bilateral offset mechanism (BOM) or other activities that produce carbon credit.

In general, NAMAs that produce carbon credit are expected to be concentrated on mitigation actions that require the highest cost. All project-based activities that produce carbon offset credit cannot be used as GHG emission reduction by the Government of Indonesia.

Based on the negotiation results in Caucun’s COP 16 in Mexico, it is stipulated in paragraph 53 to develop a Registry that records NAMAs which seek international support and facilitate between developing countries and developed countries in getting proper inancial support, technologies, and capacity building for mitigation actions to be done.

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3. RAN-GRK DEVELOPMENT TOWARDS

NATIONALLY APPROPRIATE MITIGATION

ACTIONS (NAMAs)

NAMAs is a term referring to a series of policies and actions taken by a country as part of its commitment to reducing GHG emission, in which each country can take different actions at the national level based on justice and according to the common but differentiated responsibilities as well as according to their respective capacities.

Furthermore, NAMAs also emphasize inancial support from developed countries to developing countries to reduce GHH emission.

Development of NAMAs becomes very instrumental for the RAN-GRK implementation, namely:

- NAMAs are intended to be documents that provid important tools, methodologies and approaches in order that RAN-GRK can work;

- NAMAs are expected to be able to help Indonesia to secure and use international fund sources, for instance Green Climate Fund (GCF) and others;

- NAMAs enable Indonesia to get recognition from UNFCCC for mitigation initiatives as outlined in RAN-GRK.

In the Cancun international conference on climate change in Mexico, in December 2010, developed and developing countries set up strong reporting requirements. At present, state parties are conducting further developments.

It should be noted that elements such as reliable measurement, measurement, reporting and verifying system (Measurable, Reportable, and Veriiable/MRV) are the key elements of an effective international GHG mitigation framework.

For the establishment of NAMAs, the sectors mentioned in Perpres No. 61 Year 2011 on RAN-GRK are grouped according to international classiication (UNFCCC). The sectors for NAMAs establishment are:

1. The land-based sectors (Forestry and Peatland, Agriculture) 2. The Energy sector

a. Power Sector b. Transport Sector

c. Industry Sector (beside energy, on the sector emission made from the industry sector is discussed)

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3.1 NAMAs – Conceptual Measures

The establishment of a clear framework for NAMAs is a key to consistency in describing performance across several ministries, related sectors and sub-sectors. Additionally, it is helps to avoid differences occurring in the various agencies/institutions. Therefore, government and related stakeholders should understand the NAMA framework clearly.

Therefore, the government will evaluate and identify how the designed framework, policies and measures of NAMAs can reach national emission reduction targets, as well as impacts and risks related to the country’s environment, economy, political structure and population. Not only that, the analysis will include long-term emission plan analysis supported by reliable data. Policy makers should also evaluate related governmental structure at the national, local and sectoral levels.

Proposed nationally-integrated process for NAMAs establishment consists of several steps, as described in Picture 4.

Figure 4.

NAMAs Measures. Establishment of Aggregated Business as Usual Baseline of Each Sectors

Establishment of Potential Mitigation Actions of Each Sectors

Establishment of Aggregated Business as Usual Baseline and Aggregated Mitigation Actions

Establishment of NAMAs and National Long-Term CO2 Emission Reduction Paths

Calculate Carbon Budget for Each Sectors

Propose Required Policies, Measures and Instruments

3.1.1 BAU Baseline5_Scenario

Understanding of the baseline scenario is very important in developing NAMAs. The Baseline scenario is a reference line for measureable indicators

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with which alternative outcomes, such as emission reduction (difference between baseline and actual performance) through mitigation actions can be evaluated. The Baseline scenario related to climate change is an estimated emission level and GHG projection in a scenario without policy intervention and mitigation technologies from the sectors identiied in an agreed period of time (years 2010-2020).

Generally, baseline is understood as: 1. A non-intervention scenario;

2. A scenario that considers possible evolution of activities and developments in the future. This may include:

a. Macro-economic trend and demography b. Economic structural change

c. Projected activities and key green house gas (GHG) emission sink, as well as

d. Technological evolution that enables the use of eficient technologies that impact GHG emission;

3. Establishment of the baseline scenario requires a long-term simulation by the inclusion of considerations related to the uncertainties within the system evolution and related challenges;

4. Baseline is not a simple estimation from the latest trends.

To establish the BAU baseline scenario, it is necessary to have an estimation on planned long-term GHG emissions with start-year start-yearof calculation and end-yearend-year. For RAN-GRK goal and national target, year 2010 is used as the start-start-year and year 2020 as endyear.

However, establishing the baseline by-sector is likely to be slightly different. For example, for REDD+, a historical baseline is developed to complete BAU baseline scenario. The historical baseline used is from 2000 through 2020. This is possible as long as it uses the same year start and year end for the establishment of baseline as the basis for national calculation of NAMAs, namely year 2010 through 2020.

During the establishment of the national BAU baseline scenario, it is better to consider the speciic structural nature of each sector. This is because every sector may consist of sub-sector, sub-national or multi-layer levels according to the national situation.

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Moreover, the national BAU baseline is inherently multi-sectoral and needs to be stablished through an integrated national process and bottom-up approach.

Figure 5 demonstrates a process for establishing national BAU and multi-sector scenario.

National Business as Usual Baseline / Aggregated BAU

Baseline

Required Integrated Processes to Establish National BAU Baselline /

Aggregated BAU Baseline (Bottom-up Approach) Energy

Sector

By models and

sub-national levels Sub-national levels

Industry Sub-sectors

Cement

Pulp & Paper

Iron & Steel

Textile

Interconnected and

isolated power systems

Land Based Sector

Transport Sector

Other Activity Industry

Sector REDD+ Power

Sector

Other Targeted Sector

1st Layer

2nd Layer

3rd Layer Figure 5.

Baseline Establishment.

Measures in national BAU baseline establishment is by determining three layers for obtaining national aggregated BAU baseline scenario:

1. Develop aggregated BAU baseline scenario of each sub sector, for example REDD+, industry. Further explanation for the development can be seen in Chapter 4.

2. Develop aggregated BAU baselines for each sector, for example the power, industry, land-based sectors. For this layer, it is better to use a bottom-up approach than a top-down one. This is because every sector can consist of several sub-sectors (for example, the industry sector), or many sub-national levels (for example, REDD+), or many interconnecting systems and isolated power systems such as in the power sector. Further explanation for the development can also be seen in Chapter 4.

3. Develop a BAU baseline that aggregates all targeted sectors.

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and provincial governments in coordination with district/city governments are responsible for the local BAU baseline development according to their respective local authority.

Then a scenario must be developed for each layer by considering the following key factors:

1. Current and future policies without any intervention and climate change policy action;

2. Market trends and the like; 3. Related uncertainty;

4. Evolution from supply and demand, 5. Cost saving; and

6. Expected system performance

The GHG emission target igure can then be calculated based on the, scenario and parameters that are applied as long as the period can use the Intergovernmental Panel on Climate Change (IPCC ) methodology for GHG inventory calculation, for example, 2006 IPCC Guidelines for National GHG Inventories.

The target emission reduction volume will be different, depending on which BAU baseline is used. The level of uncertainty will depend on the various sectors and factors such as trends in technologies/ process/ fuel, growing demand, etc.

3.1.2 Deining Mitigation Actions

After developing the national BAU baseline scenario, aggregated national mitigation actions for each sector can be obtained. Not only that, national and sector carbon budget can also be calculated by assuming the national GHG reduction targets are achieved.

Therefore, it is immediately necessary to plan potential mitigation actions for each sector and prepare long-term CO2 emission reduction scenarios for each of the actions. The mitigation actions registered in Perpres on RAN-GRK No. 61 Year 2011 can be reviewed to see whether such actions can reduce GHG emission, and its cost analysis and implementation plan can be carried out.

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by following the start-year and end-year similar to those in BAU baseline scenario development.

To develop the RAD-GRK, deinition of mitigation actions can be seen more clearly in Chapter 7 and the Guideline Book for Developing RAD-GRK.

In Perpes No. 61 year 2011, there is no deinition of mitigation actions for the achievement of -26% until -41% targets yet. Deinition of the actions will be further discussed in Chapter 3.

3.1.3 Proposed Implementability Level and Mitigation Action Selection Process

As one of the parties at UNFCCC, Indonesia has re-conirmed that economic and social development as well as poverty alleviation constitute key and the most important priorities from developing countries6_{because development} countries still have to develop and meet economic and social growth and development. Such provision becomes an important element that needs considering in establishing national mitigation actions.

Several testing criteria can be used to set rankings of potential mitigation action options proposed from each sector, namely:

(i) cost eficiency (low cost to reach signiicant emission reduction) (ii) maintain consistency related to national development goals; (iii) maintain consistency related to national environmental goals; (iv) availability and quality of data;

(v) political and social feasibility;

(vi) replicability, namely adjustment capacity to geographical, socio-economic-cultural, legal and regulatory backgrounds; and

(vii) macro-economic considerations, such as impacts on PDB (GDP), number of job opportunities created and closed, implication on long-term development, sustainable economic growth and social development, poverty alleviation, and foreign currency exchange value and trading, etc.

The testing criteria should be in line with the whole potential mitigation scenario framework proposed for each major and pertinent sector by using a bottom-up approach. In addition to this guideline, existing technological diversity, national policy and legal and regulatory frameworks must also be taken into consideration.

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Furthermore, GHG emission reduction cost (abatement cost) for each potential mitigation action is considered highly important. The agreed amount of cost and criteria will determine priority levels of each mitigation action in the related sector and at the national scale.

Job Creation

Poverty Alleviation Social dan Economic Development

Meeting National Emission Reduction Targets as Con-tribution to Integrated Global Mitigation Efforts

Figure 6. Four Pillars in Establishing Mitigation Actions for Each Sector.

Several testing criteria as proposed in Picture 6 are used to set the priority of potential mitigation actions proposed by each sector according to national and sub-national situations. Meanwhile, the selection process is described in Figure 7.

Figure 7. Scheme: Selection Process of Proposed Potential Mitigation Actions.

Proposed Potential Mitigation Actions

Cost Effectiveness

Implementability Level

Priority List

Potential Mitigation Actions

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3.1.4 Developing Emission Reduction Plan

GHG emission reduction plan development is conducted by combining national BAU baseline scenario and aggregated mitigation actions. (see Picture 7). Then, it is necessary to develop mitigation action scenarios obtained from potential actions for each sector through a unifying and ranking setting process based on cost saving and the degree of implementability.

Each long-term GHG emission reduction plan describes CO2 saving from various potential mitigation actions which are then presented in total (accumulatively) and on annual basis. (see Figure 8).

T0 T1 Tn Time

Sector #1 Sector #2 Sector #3 Sector #4 Sector #_ Sektor #n

GHG

National Business As Usual Baseline (Multi Sectoral - Aggregated)

National integrated processes in meeting the national emission reduction targets based on cost effetiveness and its implementability level

Past Trend and Current Conditions of GHG Emission

Mitigation Actions of Each Sector GHG Emission

Future Plan Figure 8.

GHG Emission Reduction Plan.

3.1.5 Establishing Unilateral NAMAs and Supported NAMAs

Establishment of NAMAs and a long-term GHG emission reduction plan in meeting the national emission reduction targets is carried out by selecting aggregated mitigation actions divided into two categories, namely:

- domestically supported mitigation actions (unilateral NAMAs) and - internationally supported mitigation actions (supported NAMAs)

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At present, clear deinitions and criteria for mitigation actions that can be proposed as supported NAMAs are not available yet. However, such activities can be proposed and recommended by the Government of Indonesia through multi-sectoral and inter-governmental consultation coordinated by Bappenas.

Indonesian Case for Unilateral NAMAs

In order to realize the national emission reduction target by 26% below BAU scenario in 2020, Indonesia has to make several calculations and decisions. Indonesia has to establish the aggregated mitigation actions of the associated sectors. Beside that, it has to establish aggregated mitigation actions from related sectors

Based on the aggregated mitigation actions, emission reduction, the emission abatement costs and implementation schedule can be presented in a matrix, like iin Table 3 below.

Table 3. Matrix of Unilateral NAMAs (Indonesian Case: -26% from BAU in 2020).

No

1 --aa-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx xx 2 --bb-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx xx 3 --aa-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx xx 4 --cc-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx xx 5 --aa-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx xx 6 --dd-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx xx 7 --ee-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx xx n-1 --bb-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx xx n --aa-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx xx

---zz---TOTAL xx,xxx,xx -y- x,xxx,xx xx.xx Sector Mitigation_Actions

Mitigation Cost

Abatement

Cost Time Frame

Emission Reduction

[Mt CO2] [%] [US$]

Required Completion Period (Year)

Operating Date [US$/TCO2]

Indonesian Case for Supported NAMAs

Similar information required in the unilateral NAMAs development will also be needed in developing the internationally supported NAMAs. However, additional information is needed, for example the required funding/inancing (see Table 4)

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The selection process is conducted through merging and setting of rankings based on cost saving and implementability level, and GHG emission reduction plan scenario development. However the chances for the implementation of the supported NAMAs will depend on the availability of inancial and related support under the UNFCCC framework.

Linking Indonesian NAMAs with UNFCCC

Several mechanisms of NAMAs under UNFCCC such as registry and matching process of inance, technology and capacity building support to these actions are not available yet.

However during the Caucun’s COP-16 in Mexico, December 2010, it was agreed to set up a registry to record NAMAs that seek international support, and to facilitate the matching of inancing, technology and capacity-building.

Figure 9 explains measures to be taken to link Indonesian NAMAs process with UNFCCC.

No

1 --aa-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx x,xxx.xx xx

2 --bb-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx x,xxx.xx xx

4 --cc-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx x,xxx.xx xx

6 --dd-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx x,xxx.xx xx

7 --ee-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx x,xxx.xx xx

n-1 --bb-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx x,xxx.xx xx

n --aa-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx x,xxx.xx xx

---zz---TOTAL xx,xxx,xx -y- x,xxx,xx xx.xx x,xxx,xx

Catatan: 1. 26% + -y-% = 41%, which is deviation from the baseline in 2020 2. *) Submit to the UNFCCC Secretariat (support by Developed Country Parties)

Sector Mitigation

Actions

Mitigation Cost

Abatement Cost

Required Financing Support*

Time Frame Emission

Reduction

[Mt CO2] [%] [US$] [US$]

Required Completion Period (Year)

Operating Date

[US$/TCO2]

Table 4. Matrix of Supported NAMAs

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Submit to the UNFCCC

Secretariat

• Registry and Matching

Processes

• Approval Conirmation

by the UNFCCC Secretariat

• Project

Completion of NAMAs

• Implementation

NAMAs

MRV National

Integrated Process

• Table of Domestically

Supported NAMAs

• Table of Internation -ally Supported of NAMAs

• Approved &

Registered

• Disbursement

Schedule

• Construction &

Monitoring

• Operation Phase

Implementation of MRV (Guidlines to be developed under the

convention)

Figure 9. Work Flow Needed for Establishing Developing Countries’ NAMAs.

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4. NATIONAL GHG EMISSION REDUCTION

STRATEGY

4.1 General Policy Direction (Cross-cutting)

If seen from cross-cutting perspectives, the most important area that requires attention in the future is the land use issue, since problems related to land conversion and land use are also discussed in the agriculture, forestry and energy sectors.

Connection and inter-connection among the sectors will be followed up in the future RAN-GRK development process which will include integration of spatial plan use that contains issues of climate change, capacity building, and mechanism development for laws and legislation.

Regional Scope. RAN-GRK also considers diversity of the physical, political and culture conditions so that Indonesia needs a policy approach based on regional aspects for the national development plan. Therefore, policy approach to climate change problems is adjusted to speciic character condition owned by Indonesian regions, namely Sumatera, Jamali (Jawa, Madura, Bali), Kalimantan, Sulawesi, Nusa Tenggara, Maluku, and Papua.

Success in dealing with climate change is also determined by how far climate policy is integrated into national development policy and sectors. Therefore, the mainstreaming of climate change mitigation actions in developmental decisions that bring consequences to climate becomes important for its implementation in order to reach the national low-carbon development.

For an example, effective carbon price can realize signiicant mitigation action potential in all sectors since the implementability level of carbon value can provide economic beneicial signs in carbon markets to create investment and inancial low from developed countries to developing countries.

The required policy is the one that can create incentives for producers and consumers towards low-carbon development. Such approach requires several innovation and change in traditional development approaches.

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Not only that, it is necessary to enhance understanding on possibilities of selecting and carrying out mitigation options in several sectors to maintain synergy level and avoid conlicts with other dimensions of sustainable development.

Climate change-related policies are seldom applied separately from other policies. Instead, they are applied in the form of series of policies with other policies, for example with development related policies. In conducting climate change mitigation actions, one or more policy instruments must be applied. Several national policies and instruments are made available in order to be able to create incentives for mitigation actions to be done, like what is done in other countries, namely government support through inancial contribution, tax credit, standard setting and creation of markets important to effective technological development, innovation and use.

However, considering that public policies often bring about unexpected side-effects or far-less-than-expected ones, reporting becomes important for climate change policy integration because it can improve accountability and learning. Stable condition also guarantees country development such as Indonesia to get other supports, for example technological transfer and funds.

In general, NAMAs can use a large spectrum of policy instruments of GHG emission reduction such as: (i) economic and iscal policies, for example carbon tax, fuel subsidy removal, or emission trade; (ii) target economic and iscal policies, for example subsidy for energy-saving investment, feed-in tariffs for renewable energy technologies, or inancial incentives; (iii) standards, for example vehicles’ fuel consumption, rules and construction certiication, or tools standard and labelling for energy eficiency; (iv) knowledge-transferring information and education, for example public awareness campaigns, energy analysis (audit), or demonstration actions or trainings; and (v) Research and low-carbon technological developments and new energy more suitable for dealing with climate change issues that must be analyzed at the national level to evaluate its application before the implementation phase.

Furthermore, effectiveness of the impacts of proposed policy instrument implementation needs to be analyzed in order to understand how much it can improve low-carbon economic development.

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Figure 10 describes a logical low of integration of climate change policies which constitutes a connection of key elements for reaching the whole action at the national level in meeting GHG emission reduction targets at the national level.

State of Economy, Social, and Environment

Mandatory Progarmmes & Oppotunities Related with Climate

Change Mitigation

Policies Strategy

Policies Instruments

Outcome Figure 10.

Flow of Climate Change Policy Integration.

According to the UN Convention on Climate Change (UNFCCC), article 3.4 it is mentioned that the parties possess the right for, and should promote sustainable development.

Thus, policies and measures to protect the world from climate change that is especially resulted from human beings should be in line with the condition of each party and should be integrated with the national development program, while taking into consideration that economic development is essential for adopting measures to address climate change.

The question of consistency between climate change objectives and other policy goals is rarely discussed in the general strategy development. There is even a tendency to overlook inconsistencies between climate change issues and other issues, while potential synergies are highlighted in the climate change-related policies.

Some ways of integrating policies can be done through integration of cross-cutting (cross-sectoral) policy integration or by-sector policy integration within and across all levels of government (see Figure 11).