Climate Change Policy Making and SEA in Indonesia

1Climate Change Policy Making and SEA in IndonesiaJICA’s assistance addressing Climate ChangeNovember 15, 2010Tomonori SUDO, Ph.D.,ExpertOperations Strategy DepartmentJapan International Cooperation Agency (JICA)2• Negotiation process on Post Kyoto framework under UNFCCC ? Discussed at Ad-hoc Working Group on Long –Term Cooperative Actions (AWG-LCA) Discussion points based on Bali Action Plan– Appropriate reduction target for developed countries (Consideration of each countries’ condition and comparability of reduction efforts)– Appropriate Mitigation Actions by Developing Countries ( in Measurable, Reportable and Verifiable (MRV) manner)– Adaptation– Financial assistance and technology development and transfer• Negotiation process on revision of Kyoto Protocol under KP– Revision of GHG reduction target by Developed Countries– Revision of Kyoto Mechanism• “Copenhagen Accord” was taken note at COP15 (December 2009 at Copenhagen, Denmark)Negotiation process on International Framework after Kyoto Protocol (Post Kyoto)3• Each developing countries develop its appropriate mitigation actions voluntarily based its economic situation, energy balance, industrial structure and development policy & strategy• List of actions will be registered at UNFCCC• Based on registered NAMA, developing countries implement listed policies and actions. These actions are monitored ( Measurable) and reported to UNFCCC through NC ( Reportable) by developing countries, and verified by third parties ( Verifiable ) ?• Donors will provide their technical & financial assistance to the actions and policies listed on NAMAs ?? Experiences in Development Policy Lending scheme could be applicable to NAMAsNationally Appropriate Mitigation Actions ( NAMAs )4- The amount of CO2 emissions has increased along with Indonesia’s economic growth.- The level of GHG emissions, including emissions from the forestry sector, is the third largest in the world (3,143 MtCO2e).- The level of GHG emissions from the energy sector is the 15th largest in the world, following developed economies, China, India, Iran, and Mexico.- The number of weather-related natural disasters has been increasing since 1990.Total GHG Emission including LULUCF3143.16640.6 6562.72331.61730.82005.41408.81012.2 882.9 773.801000200030004000500060007000ChinaUSAIndonesiaBrazilRussiaIndiaJapanGermanyMalaysiaCanadaMtCO2eSource: W orld Resource Institute (2008)GHG Emission from Energy Use (2004)344.301,0002,0003,0004,0005,0006,0007,000USAChinaRussiaJapanIndiaGermanyCanadaUKItalyKorea (South)IranFranceMexicoAustraliaIndonesiaSource: World Research Insitute(2008)Background of Indonesia CCPL (2)0%10%20%30%40%50%60%70%80%90%1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004PPP/PersonPer Capita CO2Emissions (excludesland use change)CO2 Emission Growth and Economic Growth Rate (1990-2004)Source: W orld Resource Inst it ut e (2008)Numbe r of Disas ters be tween 1990 and 2007135791113151909 1967 1974 1979 1983 1987 1991 1995 1999 2003 20075National Action Plan for Climate ChangeNational Development Planning for Climate ChangePolicy Matrix (List of Policy Actions)(Forestry, Energy, Water, Agriculture, Cross-sector )CC policy framework in Indonesia5Years National Development Plan (RJPM)6• Using & sharing “Best Available Knowledge” on climate change• Screening development policies applying concept of SEA • Check feasibility & timeline- Construction of Coal fired power stations- Renewable energy development - Energy Efficiency improvement- Develop new cultivation- Improve existing irrigation system - Construction of Dykes- Develop early warning system - Prepare Hazard map & training- Provision of license -Improve forest managementHow to develop climate change policy matrix5 years development plan- Renewable energy development - Energy Efficiency improvement- Improve existing irrigation system - Develop early warning system - Prepare Hazard map & training-Improve forest management- Identify RE & EE Potential & available technologies- Identify priority area for RE & sectors for EE - Implement pilot projects - Drafting legal & Institutional Framework-Review pilot project-Revise legal & institutional framework-Official Launch of new institutionsPrioritize & Sort by timelineCollected Climate PoliciesDialogue w/ stakeholdersApply concept of SEA77National Development PlanMitigationAdaptationNAMAPolicy Matrix• NAMA & NAPA focus on Mitigation & Adaptation actions among development policies• “ policy matrix includes several policies and actions not only mitigation but also adaptation and cross-cutting issues• Both need to align “Development policies & Strategies”Relations between Development policy, climate policy and Policy Matrix8Climate Change Program LoanExample of the Policy Matrix formulated based on the policy dialoguePillar 1: Mitigation1.1: LULUCF(Land Use, Land Use Change and Forestry)Reforestation-REDD-Forest management1.2: Energy-Power plant-Industry, domestic and commercial-OthersPillar 2: Adaptation2.1: Water Resource Management2.2: Water Supply and Sanitation2.3: AgriculturePillar 3: Cross-cutting Issues3.1:Understanding the Impact of Climate Change3.2: Mainstreaming Climate Change in the National Development Program3.3: CDM 3.4: Co-Benefit3.5: Fiscal Incentive3.6: Early Warning SystemMonitor, Review and AdviceSteering CommitteePartner Country’s GovernmentDonorsFinancial Assistance, Technical CooperationCoordination among line MinistriesImplementation of Climate Change policy actions9Policy Area Actions Achieved in 2007 (CCPL ( I) ) Actions Achieved in 2008 (CCPL (II)) Actions for 2009 ( CCPL (III) )Mitigate climate change through the absorption of greenhouse gases and suppressing emissions (forests/energy)? Building the concept of countermeasures in response to Reduced Emissions from Deforestation and Degradation in Developing Countries (REDD) ? Institution of energy laws aimed at the promotion of the development of renewable energy? Implementation of energy audit and introduction of systems of labeling for energy-saving products? Establishment of an implementation plan for the implementation of REDD pilot projects? Creation and institution of government regulations concerning policies for the promotion of the development of renewable energy? Establishment of sectoral road maps for reduction of carbon dioxide emissions through energy saving? Design a sustainable re-forestation program? Implement REDD pilot projects? Design an incentive mechanism for geothermal power development (feed-in tariff and an exploration fund)? Design an incentive and monitoring mechanism for energy conservation through energy audits and CO2 reduction roadmapStrengthen adaptation capabilities relating to the negative effects of climate change (water resources/agriculture etc.)? Creation of government regulations and presidential decrees aimed at integrated watershed management? Establishment of ministerial decrees relating to management of water for irrigation use and maintenance/ management of facilities? Establishment of agricultural leadership and research and development structures to respond to climate change? Institution of government regulations and presidential decrees aimed at integrated watershed management? Strengthening of structures for management of water for irrigation use and maintenance/management of facilities? Implementation of agricultural leadership programs to respond to climate change? Create an integrated water resource management plan? Design a mechanism to strengthen the coordination between water resource management and farmer’s association? Continue the implementation of climate field school for agricultural developmentRespond to cross-sectoral issues across different fields relating to CC? Establishment of a national action plan relating to climate change? Formulation and approval of CDM projects? Introduction of observation facilities aimed at strengthening an early warning system? Reflection of climate change policies in national development plans? Increase in cases of approval of CDM projects? Enhancement of facilities aimed at strengthening an early warning system? Mainstreaming climate change in the next mid-term national development plan (2010-2014)? Further registration of CDM projects? Continue the installment of climate monitoring equipmentsFor Effective and Sustainable Policy Reforms:1. Technical Assistance: Support for guideline for forest fire management; Geothermal development capacity building (exploration); Study on energy conservation and efficiency1. Support GOI on its policy reforms for climate change in the mitigation (forestry and energy ), adaptation (agriculture, water resources, water supply and sanitation) and cross-sectoral issues2. Provided CCPL (I) with AFD to support GOI’s policy reforms (JICA $300M, AFD $200M)Policy ActionsPolicy Matrix of CCPLObjectives and Role of CCPLOther Related Projects3. Acts as a catalyst between GOJ and GOI for policy reforms in Indonesia under Cool Earth Partnership2. JICA is conducting a fiscal incentive study to promote Independent Power Producer participation in geothermal energy development. Another study on energy audits is under preparation. 10Significance of SEA in climate change policy development • SEAs are high-level decision-making tools used to promote sustainable development.– Policy Matrix in CCPL is pioneer of voluntary climate change actions taken by developing country: ? applicable to other dev countries, but commitment by the government is most important– Climate Change actions need to be act by many concerned ministries & agencies. Monitoring meeting for CCPL may be meaningful as a venue of coordination among concerned Ministries and agencies.– Interactive linkage between Policy actions in CCPL & individual projects can lead fruitful result.– Wide-range knowledge & experiences on policy implementation are necessary for practical advices. Climate Change Policy Making and SEA in Indonesia JICA’s assistance addressing Climate Change Negotiation process on International Framework after Kyoto Protocol (Post Kyoto) Slide 3 Background of Indonesia CCPL (2) CC policy framework in Indonesia Slide 6 Slide 7 Slide 8 Slide 9 Significance of SEA in climate change policy development