Establishing Unilateral NAMAs and Supported NAMAs

Guideline for Implementing Green House Gas Emission Reduction Action Plan 24 At present, clear deinitions and criteria for mitigation actions that can be proposed as supported NAMAs are not available yet. However, such activities can be proposed and recommended by the Government of Indonesia through multi-sectoral and inter-governmental consultation coordinated by Bappenas. Indonesian Case for Unilateral NAMAs In order to realize the national emission reduction target by 26 below BAU scenario in 2020, Indonesia has to make several calculations and decisions. Indonesia has to establish the aggregated mitigation actions of the associated sectors. Beside that, it has to establish aggregated mitigation actions from related sectors Based on the aggregated mitigation actions, emission reduction, the emission abatement costs and implementation schedule can be presented in a matrix, like iin Table 3 below. Table 3. Matrix of Unilateral NAMAs Indonesian Case: -26 from BAU in 2020. No 1 --aa-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx xx ---zz--- 2 --bb-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx xx ---zz--- 3 --aa-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx xx ---zz--- 4 --cc-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx xx ---zz--- 5 --aa-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx xx ---zz--- 6 --dd-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx xx ---zz--- 7 --ee-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx xx ---zz--- n-1 --bb-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx xx ---zz--- n --aa-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx xx ---zz--- TOTAL xx,xxx,xx -y- x,xxx,xx xx.xx Sector Mitigation Actions Mitigation Cost Abatement Cost Time Frame Emission Reduction [Mt CO 2 ] [] [US] Required Completion Period Year Operating Date [USTCO 2 ] Indonesian Case for Supported NAMAs Similar information required in the unilateral NAMAs development will also be needed in developing the internationally supported NAMAs. However, additional information is needed, for example the required fundinginancing see Table 4 Furthermore, as explained in the previous sub-chapter, aggregated mitigation actions of related sectors to be included under the category of supported NAMAs must go through selection of potential mitigation actions of each sector. Guideline for Implementing Green House Gas Emission Reduction Action Plan 25 The selection process is conducted through merging and setting of rankings based on cost saving and implementability level, and GHG emission reduction plan scenario development. However the chances for the implementation of the supported NAMAs will depend on the availability of inancial and related support under the UNFCCC framework. Linking Indonesian NAMAs with UNFCCC Several mechanisms of NAMAs under UNFCCC such as registry and matching process of inance, technology and capacity building support to these actions are not available yet. However during the Caucun’s COP-16 in Mexico, December 2010, it was agreed to set up a registry to record NAMAs that seek international support, and to facilitate the matching of inancing, technology and capacity-building. Figure 9 explains measures to be taken to link Indonesian NAMAs process with UNFCCC. No 1 --aa-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx x,xxx.xx xx ---zz--- 2 --bb-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx x,xxx.xx xx ---zz--- 3 --aa-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx x,xxx.xx xx ---zz--- 4 --cc-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx x,xxx.xx xx ---zz--- 5 --aa-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx x,xxx.xx xx ---zz--- 6 --dd-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx x,xxx.xx xx ---zz--- 7 --ee-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx x,xxx.xx xx ---zz--- n-1 --bb-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx x,xxx.xx xx ---zz--- n --aa-- ---xxx--- xx,xxx,xx -x- x,xxx,xx xx.xx x,xxx.xx xx ---zz--- TOTAL xx,xxx,xx -y- x,xxx,xx xx.xx x,xxx,xx Catatan: 1. 26 + -y- = 41, which is deviation from the baseline in 2020 2. Submit to the UNFCCC Secretariat support by Developed Country Parties Sector Mitigation Actions Mitigation Cost Abatement Cost Required Financing Support Time Frame Emission Reduction [Mt CO 2 ] [] [US] [US] Required Completion Period Year Operating Date [USTCO 2 ] Table 4. Matrix of Supported NAMAs Indonesian Case – Reduction down to 41 in 2020. Guideline for Implementing Green House Gas Emission Reduction Action Plan 26 Submit to the UNFCCC Secretariat • Registry and Matching Processes • Approval Conirmation by the UNFCCC Secretariat • Project Completion of NAMAs • Implementation NAMAs MRV National Integrated Process • Table of Domestically Supported NAMAs • Table of Internation- ally Supported of NAMAs • Approved Registered • Disbursement Schedule • Construction Monitoring • Operation Phase Implementation of MRV Guidlines to be developed under the convention Figure 9. Work Flow Needed for Establishing Developing Countries’ NAMAs. The supported NAMAs need to be submitted to the UNFCCC Secretariat along with the GHG emission reduction plan, estimated mitigation cost, abatement cost, required inancing support, and related anticipated implementation schedule such as required completion period and operating date. Guideline for Implementing Green House Gas Emission Reduction Action Plan 27

4. NATIONAL GHG EMISSION REDUCTION STRATEGY

4.1 General Policy Direction Cross-cutting

If seen from cross-cutting perspectives, the most important area that requires attention in the future is the land use issue, since problems related to land conversion and land use are also discussed in the agriculture, forestry and energy sectors. Connection and inter-connection among the sectors will be followed up in the future RAN-GRK development process which will include integration of spatial plan use that contains issues of climate change, capacity building, and mechanism development for laws and legislation. Regional Scope. RAN-GRK also considers diversity of the physical, political and culture conditions so that Indonesia needs a policy approach based on regional aspects for the national development plan. Therefore, policy approach to climate change problems is adjusted to speciic character condition owned by Indonesian regions, namely Sumatera, Jamali Jawa, Madura, Bali, Kalimantan, Sulawesi, Nusa Tenggara, Maluku, and Papua. Success in dealing with climate change is also determined by how far climate policy is integrated into national development policy and sectors. Therefore, the mainstreaming of climate change mitigation actions in developmental decisions that bring consequences to climate becomes important for its implementation in order to reach the national low-carbon development. For an example, effective carbon price can realize signiicant mitigation action potential in all sectors since the implementability level of carbon value can provide economic beneicial signs in carbon markets to create investment and inancial low from developed countries to developing countries. The required policy is the one that can create incentives for producers and consumers towards low-carbon development. Such approach requires several innovation and change in traditional development approaches. Moreover, applying low-carbon sustainable development can give signiicant contribution to climate change mitigation, but the implementation may require additional resources to deal with lots of challenges. Guideline for Implementing Green House Gas Emission Reduction Action Plan 28 Not only that, it is necessary to enhance understanding on possibilities of selecting and carrying out mitigation options in several sectors to maintain synergy level and avoid conlicts with other dimensions of sustainable development. Climate change-related policies are seldom applied separately from other policies. Instead, they are applied in the form of series of policies with other policies, for example with development related policies. In conducting climate change mitigation actions, one or more policy instruments must be applied. Several national policies and instruments are made available in order to be able to create incentives for mitigation actions to be done, like what is done in other countries, namely government support through inancial contribution, tax credit, standard setting and creation of markets important to effective technological development, innovation and use. However, considering that public policies often bring about unexpected side-effects or far-less-than-expected ones, reporting becomes important for climate change policy integration because it can improve accountability and learning. Stable condition also guarantees country development such as Indonesia to get other supports, for example technological transfer and funds. In general, NAMAs can use a large spectrum of policy instruments of GHG emission reduction such as: i economic and iscal policies, for example carbon tax, fuel subsidy removal, or emission trade; ii target economic and iscal policies, for example subsidy for energy-saving investment, feed-in tariffs for renewable energy technologies, or inancial incentives; iii standards, for example vehicles’ fuel consumption, rules and construction certiication, or tools standard and labelling for energy eficiency; iv knowledge-transferring information and education, for example public awareness campaigns, energy analysis audit, or demonstration actions or trainings; and v Research and low-carbon technological developments and new energy more suitable for dealing with climate change issues that must be analyzed at the national level to evaluate its application before the implementation phase. Furthermore, effectiveness of the impacts of proposed policy instrument implementation needs to be analyzed in order to understand how much it can improve low-carbon economic development. Therefore, it is clearly obvious that the application depends on the national framework and sectors, national situation and understanding on the interaction at the national and international levels.