Pak Satya
CIRCULAR ECONOMY AND
INDONESIA’S NDC:
CHALLENGES AND OPPORTUNITIES FOR A
SUSTAINABLE FUTURE
Circular Economy Forum
Jakarta Convention Center
12 July 2017
SATYA WIDYA YUDHA
Vice Chairman of Commission VII & Chairman of the Green Economy Caucus
The House of Representatives of the Republic of Indonesia
CIRCULAR ECONOMY
Theoretical basis: David W. Pearce & R. Kerry Turner, 1990
Primary thesis
The current economic system does not
provide any real incentive for recycling;
almost all products; almost all products
are manufactured to be ultimately
disposed of.
Status quo: linear economy
Take, make, dispose -> WASTEFUL
The future: circular economy
Reuse, refurbish, remanufacture, recycle
NO WASTE
In 2015 the EU implemented a new Circular Economy Package, designed to
encourage the system by funding implementaAon efforts as well as seCng up
regulaAons on waste that incenAvize recycling programs.
CIRCULAR ECONOMY
Responding to global sustainability problems
Global Household Expenditure
1970: USD7 trillion
Global Resource Needs
2014: 50 billion tons
2012: USD25 trillion
2050: 130 billion ton
Global GDP (Business As Usual)
2010: -1.6%
Annual Raw Material Extraction
Increased 3x in the last 40 years
2030: -3.2%
Commodity Prices
Increased 3x in the last 10 years
Waste
2025: ± 2.2 trillion kilograms of waste
produced in urban settings alone
Climate Change & Environmental
Effects
Consistently worsening conditions from
year to year as a result of rising industrial
and household emissions
CIRCULAR ECONOMY
Fundamental and comprehensive change in economic activities
BUSINESS AS USUAL
Example of circular economy:
The Mud Jeans brand in the
Netherlands: jeans are rented
un2l outworn, then returned and
recycled and made into new
products; consumers are then
given new jeans.
LOCAL INITIATIVES IN CIRCULAR ECONOMY
Examples of locally-based dissemination and sustainable processing
Cattle dung-powered biogas
reactor, Padang (PT Swen IT)
3,400 units in 243 regencies/
cities in 33 provinces
Local recyclers, Indonesia Plastic
Recyclers Association (ADUPI)
400,000 tons of plastic a year are
recycled from a total of 3–4
million tons of plastic
consumption
CIRCULAR ECONOMY AND NDC
A Zero-Waste Economy to Support Reducing Emissions
INDONESIA’S NDC
No.
Sector
-29% (UNCONDITIONAL)
-41% (CONDITIONAL)
2030
2010
(Million
Tons of
CO2e)
BAU
CM1
CM2
CM1
CM2
CM1
CM2
2030 Emissions Levels
(Million Tons of CO2e)
Emissions ReducAons
Million Tons of CO2e
% of total BAU
1
Energy
453
(35.1%)
1,830
(61.4%)
1,357
(64.3%)
1,271
(67.5%)
473
559
15.87
18.76
2
Waste
88
(6.8%)
296
(9.9%)
278
(13.2%)
263
(14%)
18
33
0.60
1.11
3
IPPU
36
(2.8%)
70
(2.3%)
67
(3.2%)
66
(3.5%)
2.6
3.6
0.09
0.12
4
Agriculture
66
(5.1%)
70
(2.3%)
65
(3.1%)
64
(3.4%)
5
6
0.17
0.20
5
LULUCF
647
(50.1%)
714
(24%)
344
(16.3%)
220
(11.7%)
370
494
12.42
16.58
Total
1,290
2,980
2,111
1,884
869
1,096
29.15
36.77
CM1 = Counter Measure 1 (uncondi'onal mi2ga2on scenario)
CM2 = Counter Measure 2 (condi'onal mi2ga2on scenario)
CIRCULAR ECONOMY AND NDC
Emissions mitigation in the waste sector: in-line with the circular economy
URBAN SOLID WASTE SECTOR
MiAgaAon steps in the processing
of solid waste, an incrase in LFG
recovery implementaAon from
2010 to 2030.
Increase in the percentage of
waste handled through
composAng and 3 R (paper).
Increase in the uAlizaAon of waste
through waste-fired power plants/
RDF (Refuse Derived Fuel).
BAU
CM1
CM2
No mi2ga2on steps.
LFG recovery
reduces CH4 from
0.65% to 10%.
LFG recovery
reduces CH4 from
0.65% to 10%.
No mi2ga2on steps.
Increase to 22% in
2020 and 30% in
2030.
Increase to 22% in
2020 and 30% in
2030.
No mi2ga2on steps.
- Up to 3% of total
- Up to 3% of total
waste in 2020
waste in 2020
and increasing to
and increasing to
5% in 2030.
5% in 2030.
- Development of
- Development of
waste-fired
waste-fired
power plants in
power plants in 7
12 ci2es
ci2es
(addi2onal)
CIRCULAR ECONOMY AND NDC
Emissions mitigation in the power sector: in-line with the circular economy
In an ideal circular
economy model, all
acAvity is powered by
clean energy.
UAlizaAon of renewables
(solar, wind, and biomass/
waste) and efficient
technologies in power
generators in accordance with
General ElectrificaAon Plans
for 2016–2025.
Increase in use of
superefficient energy
equipment (best available
technology, BAT) in industry,
commerce, and residences in
2030.
Increase in use of biofuel in
the transportaAon sector in
2030.
ENERGY SECTOR
BAU
CM1
CM2
Increase in renewables
Increase in renewables
usage and efficient
usage.
technologies.
No usage of
renewables and
efficient technologies.
100% penggan2an
minyak tanah menjadi
bahan bakar gas.
More extensive usage
of ultra supercri2cal
technology (44%
efficiency) in coal-fired
power plants.
0% penetra2on.
10% penetra2on.
20% penetra2on.
No increase.
Increase up to 5% of
total energy from the
transporta2on sector.
Increase up to 10% of
total energy from the
transporta2on sector.
CIRCULAR ECONOMY AND NDC
Emissions mitigation in the IPPU sector: in-line with the circular economy
IPPU SECTOR
BAU
Management of
industrial
processes and
product use
(IPPU) in large
industries.
No mi2ga2on in
industrial
processes.
CM1
CM2
Reducing “clinker to cement
ra2o” in the cement industry
(blended cement) from 80% in
2010 to 75% in 2030.
Increasing amount of cement
companies that reduce their
“clinker to cement
ra2o” (blended cement) from
80% in 2010 to 75% in 2030.
Ammonia industry: increase in
efficiency through op2miza2on
of natural gas usage (feedstock)
and CO2 recovery in Primary
Reformers.
Ammonia industry: increase in
efficiency through op2miza2on
of natural gas usage (feedstock)
and CO2 recovery in Primary
Reformers.
Other steps:
- Steel industry to implement:
CO2 recovery, process
improvement in smelters,
u2liza2on of scrap iron
- Remainder of IPPU claims
(PFCs) from CDM aluminum
smelters.
Other steps:
- Steel industry to implement:
CO2 recovery, process
improvement in smelters,
u2liza2on of scrap iron
- Remainder of IPPU claims
(PFCs) from CDM aluminum
smelters.
POSITIVE MARKET POTENTIAL
Environmental technologies for waste and recycling
Indonesia ranks seventh overall out of 50 countries on the 2015 Top Markets
Study (TMS) with the market for environmental technologies valued at USD
6.3 billion in 2016. (International Trade Administration, 2016)
THANK YOU
WWW.SATYAYUDHA.COM
FOLLOW ME ON TWITTER: @SATYAWIDYAYUDHA
INDONESIA’S NDC:
CHALLENGES AND OPPORTUNITIES FOR A
SUSTAINABLE FUTURE
Circular Economy Forum
Jakarta Convention Center
12 July 2017
SATYA WIDYA YUDHA
Vice Chairman of Commission VII & Chairman of the Green Economy Caucus
The House of Representatives of the Republic of Indonesia
CIRCULAR ECONOMY
Theoretical basis: David W. Pearce & R. Kerry Turner, 1990
Primary thesis
The current economic system does not
provide any real incentive for recycling;
almost all products; almost all products
are manufactured to be ultimately
disposed of.
Status quo: linear economy
Take, make, dispose -> WASTEFUL
The future: circular economy
Reuse, refurbish, remanufacture, recycle
NO WASTE
In 2015 the EU implemented a new Circular Economy Package, designed to
encourage the system by funding implementaAon efforts as well as seCng up
regulaAons on waste that incenAvize recycling programs.
CIRCULAR ECONOMY
Responding to global sustainability problems
Global Household Expenditure
1970: USD7 trillion
Global Resource Needs
2014: 50 billion tons
2012: USD25 trillion
2050: 130 billion ton
Global GDP (Business As Usual)
2010: -1.6%
Annual Raw Material Extraction
Increased 3x in the last 40 years
2030: -3.2%
Commodity Prices
Increased 3x in the last 10 years
Waste
2025: ± 2.2 trillion kilograms of waste
produced in urban settings alone
Climate Change & Environmental
Effects
Consistently worsening conditions from
year to year as a result of rising industrial
and household emissions
CIRCULAR ECONOMY
Fundamental and comprehensive change in economic activities
BUSINESS AS USUAL
Example of circular economy:
The Mud Jeans brand in the
Netherlands: jeans are rented
un2l outworn, then returned and
recycled and made into new
products; consumers are then
given new jeans.
LOCAL INITIATIVES IN CIRCULAR ECONOMY
Examples of locally-based dissemination and sustainable processing
Cattle dung-powered biogas
reactor, Padang (PT Swen IT)
3,400 units in 243 regencies/
cities in 33 provinces
Local recyclers, Indonesia Plastic
Recyclers Association (ADUPI)
400,000 tons of plastic a year are
recycled from a total of 3–4
million tons of plastic
consumption
CIRCULAR ECONOMY AND NDC
A Zero-Waste Economy to Support Reducing Emissions
INDONESIA’S NDC
No.
Sector
-29% (UNCONDITIONAL)
-41% (CONDITIONAL)
2030
2010
(Million
Tons of
CO2e)
BAU
CM1
CM2
CM1
CM2
CM1
CM2
2030 Emissions Levels
(Million Tons of CO2e)
Emissions ReducAons
Million Tons of CO2e
% of total BAU
1
Energy
453
(35.1%)
1,830
(61.4%)
1,357
(64.3%)
1,271
(67.5%)
473
559
15.87
18.76
2
Waste
88
(6.8%)
296
(9.9%)
278
(13.2%)
263
(14%)
18
33
0.60
1.11
3
IPPU
36
(2.8%)
70
(2.3%)
67
(3.2%)
66
(3.5%)
2.6
3.6
0.09
0.12
4
Agriculture
66
(5.1%)
70
(2.3%)
65
(3.1%)
64
(3.4%)
5
6
0.17
0.20
5
LULUCF
647
(50.1%)
714
(24%)
344
(16.3%)
220
(11.7%)
370
494
12.42
16.58
Total
1,290
2,980
2,111
1,884
869
1,096
29.15
36.77
CM1 = Counter Measure 1 (uncondi'onal mi2ga2on scenario)
CM2 = Counter Measure 2 (condi'onal mi2ga2on scenario)
CIRCULAR ECONOMY AND NDC
Emissions mitigation in the waste sector: in-line with the circular economy
URBAN SOLID WASTE SECTOR
MiAgaAon steps in the processing
of solid waste, an incrase in LFG
recovery implementaAon from
2010 to 2030.
Increase in the percentage of
waste handled through
composAng and 3 R (paper).
Increase in the uAlizaAon of waste
through waste-fired power plants/
RDF (Refuse Derived Fuel).
BAU
CM1
CM2
No mi2ga2on steps.
LFG recovery
reduces CH4 from
0.65% to 10%.
LFG recovery
reduces CH4 from
0.65% to 10%.
No mi2ga2on steps.
Increase to 22% in
2020 and 30% in
2030.
Increase to 22% in
2020 and 30% in
2030.
No mi2ga2on steps.
- Up to 3% of total
- Up to 3% of total
waste in 2020
waste in 2020
and increasing to
and increasing to
5% in 2030.
5% in 2030.
- Development of
- Development of
waste-fired
waste-fired
power plants in
power plants in 7
12 ci2es
ci2es
(addi2onal)
CIRCULAR ECONOMY AND NDC
Emissions mitigation in the power sector: in-line with the circular economy
In an ideal circular
economy model, all
acAvity is powered by
clean energy.
UAlizaAon of renewables
(solar, wind, and biomass/
waste) and efficient
technologies in power
generators in accordance with
General ElectrificaAon Plans
for 2016–2025.
Increase in use of
superefficient energy
equipment (best available
technology, BAT) in industry,
commerce, and residences in
2030.
Increase in use of biofuel in
the transportaAon sector in
2030.
ENERGY SECTOR
BAU
CM1
CM2
Increase in renewables
Increase in renewables
usage and efficient
usage.
technologies.
No usage of
renewables and
efficient technologies.
100% penggan2an
minyak tanah menjadi
bahan bakar gas.
More extensive usage
of ultra supercri2cal
technology (44%
efficiency) in coal-fired
power plants.
0% penetra2on.
10% penetra2on.
20% penetra2on.
No increase.
Increase up to 5% of
total energy from the
transporta2on sector.
Increase up to 10% of
total energy from the
transporta2on sector.
CIRCULAR ECONOMY AND NDC
Emissions mitigation in the IPPU sector: in-line with the circular economy
IPPU SECTOR
BAU
Management of
industrial
processes and
product use
(IPPU) in large
industries.
No mi2ga2on in
industrial
processes.
CM1
CM2
Reducing “clinker to cement
ra2o” in the cement industry
(blended cement) from 80% in
2010 to 75% in 2030.
Increasing amount of cement
companies that reduce their
“clinker to cement
ra2o” (blended cement) from
80% in 2010 to 75% in 2030.
Ammonia industry: increase in
efficiency through op2miza2on
of natural gas usage (feedstock)
and CO2 recovery in Primary
Reformers.
Ammonia industry: increase in
efficiency through op2miza2on
of natural gas usage (feedstock)
and CO2 recovery in Primary
Reformers.
Other steps:
- Steel industry to implement:
CO2 recovery, process
improvement in smelters,
u2liza2on of scrap iron
- Remainder of IPPU claims
(PFCs) from CDM aluminum
smelters.
Other steps:
- Steel industry to implement:
CO2 recovery, process
improvement in smelters,
u2liza2on of scrap iron
- Remainder of IPPU claims
(PFCs) from CDM aluminum
smelters.
POSITIVE MARKET POTENTIAL
Environmental technologies for waste and recycling
Indonesia ranks seventh overall out of 50 countries on the 2015 Top Markets
Study (TMS) with the market for environmental technologies valued at USD
6.3 billion in 2016. (International Trade Administration, 2016)
THANK YOU
WWW.SATYAYUDHA.COM
FOLLOW ME ON TWITTER: @SATYAWIDYAYUDHA