CHAPTER 5. FINANCE, TECHNOLOGY AND CAPACITY BUILDING NEEDS AND SUPPORT RECEIVED
5.1 Support Needs
FINANCE, TECHNOLOGY AND CAPACITY BUILDING NEEDS AND SUPPORT RECEIVED 5-1
CHAPTER 5. FINANCE, TECHNOLOGY AND CAPACITY BUILDING
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Table 5-1. Estimated financial needs to meet the unconditional target for period 2018-2030 Sector Financial needs
(billion IDR) Financial needs
(billion USD) Mitigation policies and programs Forest and Land
use 77,824 5.557
Forest conservation/protection programs and forest and land fire prevention and
suppression1. Expected emission reduction in 2030 from the BAU is 650 million tons CO2
Energy &
transportation 3,307,197 236.214
Mainly for the development of 48.9 GW renewable energy power plant and
investments in clean technologies. Expected emission reduction in 2030 from the BAU is 398 million tons CO2
IPPU 40,774 0.379
Mostly for cement and steel industries (80%
by private investment). Expected emission reduction in 2030 from the BAU is 398 million tons CO2
Waste 30,339 2.907
Solid and liquid waste management at household and industrial level. About 25% of the investment is by private particularly for liquid waste management. Expected emission reduction in 2030 from the BAU is 26 million tons CO2
Agriculture 5,175 2.164
Low-emission rice varieties, improving efficient irrigation, biogas utilization, and improved feed additives. Expected emission reduction in 2030 from the BAU is 4 million tons CO2
Total 3,461,309 247.221
1/Cost of emission reduction per timber life-cycle is not included as well as cost of new technology that may occur at any stage of life cycle, and cost of peat management technologies.
Accuracy of the current government expenditure for climate actions (baseline) is important since it will affect projected financial needs. In order to improve the baseline accuracy, in the future baseline estimation may need to consider elaborating the capital expenditure and operational expenditure of projects relevant to NDC targets. Relevant projects are mostly found in the energy, IPPU, and waste sectors, which typically have such cost structures with different project financiers. Dividing capital and operational expenditure will also provide clarity whose money is being invested in the intervention, public or private. Moreover, projected financing need for capital and operational expenditure will be different.
Another important improvement to be done in the future is to update the current government climate specific financing. This is due to changes in government expenditure codes which occasionally happen after new government administration.
5.1.2 Technology Needs 5.1.2.1 Energy
From the technology need assessment, Indonesia has identified technology needs to meet the NDC target. As described in Chapter 3, this target is to be achieved through six categories of mitigation actions, namely energy efficiency measures of final energy consumption, application of clean coal technology in power generation, renewable energy power generation, use of biofuel in transport sector, increase use of natural gas through expansion of natural gas pipeline network and construction of additional CNG stations. As the preparation for implementing NDC, technology needs for achieving the NDC targets can be grouped into four sub-sectors namely transport, power generation, industry and building (Table 5-2).
FINANCE, TECHNOLOGY AND CAPACITY BUILDING NEEDS AND SUPPORT RECEIVED 5-3 Table 5-2. Mitigation technology needs of Indonesia’s energy sector
No Sub sector Technology
1 Transport Improvement of public transport; CNG; Intelligent Transport System 2 Power Generation PV & Pump Storage; Geothermal Power Plant; Advanced Coal Power Plant;
Landfill Gas Power Plant; Biomass fueled power plant; Wind power; Biofuel;
Biogas POME 3 Industry
Efficient Electric Motors; Combine Heat and Power; Pump and Fan System;
WHB (Waste Heat Boiler); Alternative Fuel; Green Boiler; Green Chiller;
Advanced Furnace 4 Building (Residential
and Commerce)
Combine Heat and Power ; WHB (Waste Heat Boiler); Efficient Lighting; Green Building; Green Boiler; Green Chiller; Efficient Electric Motors; Gas pipeline network; Solar PV; Solar Water Heater
5.1.2.2 IPPU Sector
GHG emissions from industrial process are those released due to chemical or physical transformation of raw material into products.
Indonesia’s IPPU sector mitigation actions are carried out in cement, ammonia-urea, aluminum and nitric acid industries. To meet the NDC target, the mitigation actions carried out in those industries are:
• Cement industry – reduction of clinker/cement ratio to produce blended cement.
• Aluminum industry – reducing anode effect using ALCAN ALESA Process Control
• Nitric acid industry – use of secondary catalyst in Ammonia Oxidation Reactor to reduce N2O
• Ammonia-urea industry – (i) efficiency improvement in conversion of CO to CO2, (ii) efficiency improvement in CO2 absorption in scrubber (iii) efficiency improvement in the methanation of CO2 residue for syn-gas purification.
Emission reduction target of Indonesia’s NDC in IPPU sector are to be achieved by continuing and enhancing the above mentioned mitigation
actions. Thus, the technologies that are needed by Indonesia’s IPPU sector are those technologies associated with the mitigation actions listed above.
5.1.2.3 Waste sector
Waste sector is the fourth largest contributor to Indonesia’s GHG emissions. Mitigation actions in waste sector currently implemented include: 3R (reduce, reuse, recycle); landfilling of MSW and LFG recovery for cooking in residential; domestic liquid waste treatment (off-site and on-site systems). Waste sector mitigation actions in Indonesia’s NDC will consist of two groups namely treatment of MSW and treatment of domestic liquid waste LFG recovery in landfills, (composting, 3R (inorganic), and waste to power and heat). The mitigation in the domestic liquid waste will include treatment of the wastes using aerated, centralized liquid waste treatment facilities (IPAL) and treatment of sludge recovered from septic tanks in integrated liquid waste treatment facilities (IPLT). To meet the NDC target, the technology needs for waste sector are associated with the above mentioned mitigation actions plan presented in Table 5-3.
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Table 5-3. Mitigation technology needs of Indonesia’s waste sector
No Technology Remarks
1 Sanitary Landfill and LFG recovery MSW to gas fuel
2 Semi Aerob Landfill and LFG recovery MSW to gas fuel
4 In-Vessel Composting MSW to gas fuel
5 Bio digester - Low Solid MSW to gas fuel
5 Bio digester - High Solid MSW to gas fuel
6 MBT (Mechanical Biological treatment) - Integrated organic and inorganic waste treatment
7 Thermal Conversion: Mass-fired combustion MSW to power or incineration 8 Thermal Conversion: RDF-fired combustion MSW to power or incineration 9 Thermal Conversion: Fluidized bed combustion MSW to power or incineration 10 Gasification technology: Vertical fixed bed MSW to power or incineration 11 Gasification technology: Fluidized bed MSW to power or incineration 12 Pyrolysis technology: Fluidized bed MSW to power or incineration
13 Composting (open window system) Composting
14 Aerated, centralized domestic liquid waste treatment (IPAL) Aeration reduces GHG emission
15 Integrated domestic liquid waste treatment (IPLT) Reduce GHG emission by treating sludge recovered from septic tanks
5.1.2.4 AFOLU (Agriculture, Forest and Other Land Uses
Forests and other land use sector are the main contributor of GHG emission in Indonesia. The main sources of emissions are from deforestation and forest degradation, peat decomposition including land and forest fire. Thus, significance emission reduction from this sector will depend on level of successful in reducing deforestation and degradation in both mineral and peat forests and improving management of peat land and preventing/supressing land and forest fires. The main challenge to accurately measure the achievement of the implementation mitigation actions in this sector is reliability of monitoring system to detect the change of land covers and to measure emission from peat. Government of Indonesia considered that the key technology needs for this sector include technology for integrated forest-peat carbon measurement and monitoring, technology for peat land re-mapping and technology for peat water management including methodology for determining area peat affected by fires including estimate of depth of peat burn (the burnt area and peat depth with an accuracy 5 cm).
On the other hand, reducing deforestation in the future will also depend on the capacity in reducing the expansion of commercial agriculture, such as cash crops, biofuel and livestock production. This will relate to capacity in implementing integrated landscape approach/land use planning, sustainable
intensification of commercial crop production, sustainable intensification of livestock system, sustainable biofuel initiatives, intensification of smallholder system and livelihood diversification, using degraded land for agriculture expansion and increasing agriculture production in degraded land. Government of Indonesia considered that some of key technology needs for this sector are technology for sustainable intensification practices, technology for developing high yielding varieties, balanced fertilizer application, technology for restoring soil fertility and technology for increasing grassland productivity for animal feed.
5.1.1. Capacity Needs
For effective implementation of the mitigation actions sectoral ministries (party actors), and privates and also communities (non-party actors) required capacity building. Capacity is needed not only to strengthen the skills for implementation of the technologies, but also to monitor GHG emissions, and to measure the achievement in emission reduction. In addition, awareness rising activities need to be implemented in an integrated way not only for the sectoral government agencies (Party Actors) but also for non-party actors who have the potential to participate in the implementation of mitigation actions.
FINANCE, TECHNOLOGY AND CAPACITY BUILDING NEEDS AND SUPPORT RECEIVED 5-5 Specifically the capacity building needs for
different level of stakeholder are the following:
1. Capacity development for party and non- party actors to increase their knowledge and understanding on mitigation actions and capacity for translating NDC target into mitigation actions. Each sectoral ministry should be able to develop mitigation roadmap to meet the NDC/global target and integrated mitigation actions among sectors.
Among other, the key capacity needs include (i) capacity in developing baseline/reference emission level as the basis for measuring the achievement of mitigation actions following the guideline developed by the Government;
(ii) capacity for collecting and understanding data and in developing templates to facilitate data collection; and (iii) capacity for developing functional database for tracking information on GHG emissions, effects of mitigation actions, financial flows from donor countries/funds, and capacity building and technology transfer activities.
2. Capacity of local governments and private (non-Party actors) in integrating climate change actions into their long term plan and programs. Local governments at the provincial, district and city levels are institutions that play an important role in the success of the national climate change agenda and therefore require continuous capacity building. The Regional Government is the spearhead of the implementation of various Indonesian commitments at the global level, such as Local Action Plans for Mitigation. Regional Governments can mobilize stakeholders at the local level, such as the private sector, communities and local champions, to contribute in adaptation and mitigation actions. Project planning capabilities, as well as technical writing of proposals for various sources of funds, as well as capacity for the calculation of GHG emissions also need to be improved.
3. Capacity of private sectors to implement mitigation actions. Type of capacity building for the private sectors should be adjusted to the fields condition, For example:
(i) mining companies will focus more on the use of renewable energy, as well as the
processing industry, procurement of energy and raw water, and waste management, (ii) Construction and real estate companies will
focus more on green building designs that can absorb energy and be resilient to the threat of flooding,
(iii) trading companies will limit the use of plastic, while transportation companies will cultivate eco-driving as well as use of gas fuel, and
(iv) hospitality, information and communication services companies, educational services, tourism and other services can also contribute to the use of green and environmentally friendly materials.
4. Capacity of governments and non- government agencies to carry out GHG inventory and MRV including collecting reliable activity data, developing and determining appropriate emission factors, selecting appropriate methodologies, carrying out uncertainty analysis of activity data, emission factors and GHG estimates, implementing quality control from the entire process of GHG inventory, understanding the quality assurance process, understanding the data and information filing system related to the GHG inventory.
5. Awareness and knowledge of agent of changes (religious leaders or ulama, young generation, extension services, journalist etc). The good knowledge of agent of changes is very important to accelerate the change and to motivate stakeholders in making changes. In community organizations, the role of figures is quite important in making an impact with a wide range of people. Although the characterization is not directly related to the environment, the issue of climate change can be entrusted to the system that has been applied in the community, one of them through characterization. Capacity building needs in general include understanding of climate change, related to causes, impacts, and how adaptation and mitigation actions must be carried out. Specifically, capacity building needs are adjusted to their respective roles. For religious leaders, capacity building is directed to increase their knowledge in climate change
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communication, and to review the relevance of climate change issues with verses in the scriptures. Journalists, capacity building for writing climate change news. Politicians, capacity building in climate change issues in general. Young people, capacity building related to climate change communication, social media, and climate change campaigns.
6. Education, more higher graduate study overseas for field related to climate change and research related to climate change. At the level of primary and secondary education, the integration of climate change into the curriculum in general through subject matter. Meanwhile, the problems faced in implementing capacity building
related to climate change include the limited access to teaching and learning materials, lack of competency of teaching staff in the scope of cross-disciplinary climate change, and limited integration of climate change into the curriculum. At the university level, the issue of climate change has become the object of study by many researchers and academics. In the context of current teaching and learning in higher education, climate change is integrated into a part of the course. Research related to climate change adaptation and mitigation has also been carried out, but scientific meeting forums to exchange knowledge and information still need to be improved