Problems and Challenges NATIONAL ACTION PLAN FOR GREEN HOUSE GAS EMISSION REDUCTION

Guideline for Implementing Green House Gas Emission Reduction Action Plan 12 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-MinistriesAgencies. 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

To establish GHG emission reduction action, it is necessary to have a comprehensive basis for analysis, simultaneously considering on-going dynamic developments taking place both at the national and global level. In addition, scientiic and technological developments enable various new breakthroughs that can provide alternative methodologies to approach and solutions for GHG emission reduction calculation in Indonesia. Guideline for Implementing Green House Gas Emission Reduction Action Plan 13 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. • Many mitigation actions for reducing emission by 26 which are contained in the annex of Perpres No. 61 Year 2011 need to be reviewed as to whether such activities can potentially reduce GHG emission. For example, the forestry sector includes tree-growing as GHG emission mitigation action, however there is no explanation as to how much emission will be reduced or carbon will be absorbed through the effort. Furthermore, basic data for peat land must be completed in order to be able to identify how much potential it has and the best mitigation action design.