overview of government of indonesia – gggi green growth program
TRANSCRIPT
Overview of Government of Indonesia – GGGI Green Growth Program
OECD-MINISTRY OF FINANCE INDONESIA ALIGNING POLICIES FOR THE TRANSITION TO A LOW-CARBON ECONOMY: Reconciling Environmental, Social and Economic Objectives November 4-5, 2015 // Novotel Bogor, Indonesia
Thailand
Cambodia
Vietnam
Mekong
Philippines
Indonesia
Pacific Islands
Country Sector/Programs
CambodiaGreen Growth Planning
Green urban development program
Indonesia
Green Growth PlanningGreen Growth Roadmap
Green growth assessment tools
Pacific Islands
Green Growth PlanningIntegrating Green Growth
Fiji: Framework into Planning and Budget Plans
Vanuatu: Green and inclusive energy reform
Philippines
Green Growth Planning; Adaptation
Climate resilient growth planning: Ecotown
Framework
ThailandMitigation
Climate Change Master Plan focusing on key industrial
sectors
VietnamGreen Growth Planning
Green urban developmentWater resource management
in Mekong Delta
Projects in Southeast Asia and the Pacific
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Indonesia: Overview of GoI-GGGI Green Growth Program Phase 1 (2012-2015)
Country-level goal Component-level activities
“To promote Green Growth in Indonesia that recognizes the
value of natural capital, improves resilience,
builds local economies and is inclusive and
equitable.”
Green Growth Program
1Greening the
planning process
2REDD+ for
green growth
3Sub-national engagement
• 1A: National ‘Green Growth Roadmap’• 1B: Green growth assessment tools• 1C: Prioritization of green technologies
• National REDD+ support• Sub-national REDD+ support
• Green growth mainstreamed in Central and East Kalimantan
4 Government of Indonesia - GGGI Green Growth ProgramGGP Component 1A
Assessing and designing for green investment: GGAP
Mainstreaming green growth in policy, planning, and investment
• The Green Growth Assessment Process (GGAP) is an overarching process that applies good practice use of tools for achieving green growth project outcomes.
5 Government of Indonesia - GGGI Green Growth ProgramGGP Component 1A
The roadmap is a high-level, evidence-based guide to planning and implementing green growth in Indonesia
Part 1 builds the case for moving to a growth trajectory that is more resource and energy efficient, environmentally friendly, and socially equitable.
Part 2 presents the various opportunities for green growth as well as current projects and initiatives in key economic sectors.
Part 3 describes the overarching policy and planning processes and presents methods, tools, and indicators to measure and monitor green growth performance.
Part 4 brings the preceding together into an action plan to deliver green growth in Indonesia in the short, medium and longer term, to 2050.
Mainstreaming Green Growth at Macro Level: The Green Growth Roadmap
6 Government of Indonesia - GGGI Green Growth ProgramGGP Component 1A
Assessing and designing for green investment: extended Cost-Benefit Analysis
Mainstreaming green growth in policy, planning, and investment at project level
$
Baseline
Green Growth Scenario
Incremental benefits
Incremental benefits
Incremental benefits
Project is green, but there are opportunities to enhance the green growth performance further.
Project is not green, but re-design of the project in line with green growth assessment will make it greener.
Project is not green, and while re-design will reduce the negative impact of project, it may require a major re-think in order to meet minimum standards.
• Extended Cost-Benefit Analyses quantitatively weigh up the relative costs and benefits of a potential decision • This helps to capture the full impacts of policies and investments from an economic, social and environmental
perspective, including the benefits of avoided damages• They can be powerful tools with which to suggest alternative options (e.g. green growth) to the current
situation
* The horizontal line represents the minimum threshold at which a project can be considered to be contributing to a green economy.
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• Series of four extended Cost Benefit Analysis (eCBA)
Technical report Model Policy summary booklet Training and validation workshops
Identified monetary benefits of proposed policy interventions:
KEK Maloy – 3.8 billion USD KSN Mamminasata – 355 million USD ERC Katingan – 9.9 billion USD
Mainstreaming green growth in policy, planning, and investment at project level
• Application of extended Cost Benefit Analisis (eCBA) to identify better green growth outcomes in four infrastructure and forestry/land-use projects
• Calculation of monetary values of benefits and costs associated with business as usual and green growth scenarios • eCBA goes beyond narrow financial considerations and includes wider social and environmental benefits and costs • eCBA is a useful planning tool to assess green growth outcomes of infrastructure projects at early stage (can complement
EIA and CBA in PPP projects)
Green Growth Assessment of Capital Projects
eCBA Studies Benefits (NPV) Policy barriers and enablers : examples
Regulatory issues Fiscal and financial incentives
KIPI MaloyNatural resource processing industriesInfrastructure: energy, road, transport, port
USD 3.8 Billion or 10% of regional GDP
Reform of energy pricing system and feed in tariffClarification of palm oil certification process and legal status
Support adequate feed in tariff for renewable energy (biomass) Tax exemptions for renewable energy capital equipment
KSN MamminasataFisheryReforestation / Clean Water Waste Management Renewable Energy
USD 355 Million or 6% of regional GDP
Clearer regulation on waste managementMatching spatial and land use plans
Ecosystem services levies Subsidy for waste reductionTax relief for investment in waste to energy equipment Financial support for local fish meal industry
ERC Project Katingan Ecosytem Restoration and Conservation
USD 9.9 Billion Streamlining and improving transparency of ERC licensing Clear spatial plan under One Map Initiative
Support of stable national carbon price Fiscal incentives for local governments to support ERC
Renewable Energy Options in Kalimantan Assessing 4 individual RE projects
USD 1-9 billion or 3-16% of regional GDP ( benefits of projects scaled up to Kalimantan corridor)
Transparency in grid expansion plansReform of energy pricing system and feed in tariff
Debt guarantees and capital grants to renewable energy developers Capacity building for project design expertise
G8GP Component 1A8
9 Government of Indonesia - GGGI Green Growth ProgramGGP Component 1A
Monitoring and measuring green growth performance
Indicators to measure government policies, measures and opportunities (e.g. taxes, subsidies and regulations)
Indicators to measure the
environmental quality of life (e.g. air
quality)
Sustainable development pillar
Economic Social Environmental
Normative green growth outcome
Sustained Economic Growth Equitable and Inclusive Growth
Healthy Natural Capital Providing Ecosystem Services
GHG reduction
Stock
GDP (PPP) Gross capital formation FDI Working population R Debt
Poverty headcount R Population R Population living in land
area where elevation is below 5 meters
Forested area GEF index for biodiversity Mammal species threatened Marine protected areas Fish species threatened Healthy coral reef area Fish stocks R Primary energy reserves
Forested area GHGs
Flow
GDP growth (% yoy) Total factor productivity
(% growth) Formal employment Informal employment Unemployment Underemployment
HDI R Gini coefficient R Access to electricity R Access to public health
clinics R Access to internet
Fishery production R Deforestation rate R Primary energy consumption R Water stress index R Freshwater withdrawals
R Deforestation rate
1 2 3 4Key: Correspondence with
OECD conceptual measurement framework
This “dashboard” of macro and micro indicators can measure progress against different green growth outcomes. This reflects the complexities of measuring green growth.
The same set of indicators should filter down from national to a regional and district level in order that information can be aggregated.
Potential Areas of Collaboration
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Phase II Design (2016-2019)
Program structure agreed with BAPPENAS