Policy Framework NATIONAL ACTION PLAN FOR GREEN HOUSE GAS EMISSION REDUCTION

Guideline for Implementing Green House Gas Emission Reduction Action Plan 5 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 MinistriesAgencies, 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 T T 1 T n -26 -41 2020 Year GHG National Baseline Business as Usual multi-sectorscombined 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 3 COP is an international conference organized by UNFCCC every year to discuss climate change. Guideline for Implementing Green House Gas Emission Reduction Action Plan 6 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”. The RAN-GRK was developed by integrated inancing between Ministries Agencies of central government and local governments, and is measurable and can be implemented during the period 2010-2020. Guideline for Implementing Green House Gas Emission Reduction Action Plan 7 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-GRK activities include sectors of Agriculture; Forestry and peatland; Energy and transport; Industry; Waste management; other supporting activities. GHG emission reduction target for these 6 six sectors can be seen in Table 2. It is necessary to note that the target level for GHG emission reduction and GHG emission reduction activities may be reviewed in the event that better methodologies, data and information are available in the future. Guideline for Implementing Green House Gas Emission Reduction Action Plan 8 Table 2. GHG Emission Reduction Targets by Bidang meeting results at the Coordinating Minister for Economy, Finance and Industry Ekuin Ofice, December 29, 2009. Sector Emission Reduction Action Plan Implementing Giga tons Co2e MinistryAgency 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 Environ- 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 APBNAPBD 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. So, considering that international mechanisms for Reducing Emission from Deforestation and Forest Degradation and Enhancement of Carbon Stocks REDD+ program activities are still in the process of negotiation, for the purposes of implementation it will be necessary to observe the program activities funding sources closely to determine the grouping into 3 categories: a GHG emission reduction scheme with its own fund 26Unilateral NAMAs, international support 41Supported NAMAs or carbon market or Credited NAMAs.