images file
KADIN – PAKLIM Briefing
k
„Business and Climate Change in Indonesia“
7 July 2011
03.10.17
Seite 1
Overall objective and starting points
Objective
Intensify the cooperation between GIZ/ PAKLIM and KADIN to jointly
work on increasing awareness and engaging Indonesian companies
in climate change mitigation activities in Indonesia
Starting points
PAKLIM’s commitment to strengthen its private sector engagement
and Call for Proposals 2011
Kadin’s White Paper on the issues of Climate Change and Green
Growth
03.10.17
Seite
2
Jakarta, July
2011
2
Contents
Introduction GIZ / PAKLIM in Indonesia
Climate change in Indonesia
Integration of climate change into national development planning
Private sector involvement in climate change mitigation
Focus: The industry sector and climate change
PAKLIM portfolio on cooperation with the private sector
PAKLIM Call for Proposals
Cooperation opportunities between KADIN and PAKLIM
03.10.17
Seite
3
Jakarta, July
2011
3
Who is GIZ?
•
•
•
•
•
A 100% federally owned, public-benefit enterprise, that supports the
German Government in achieving its development policy goals.
GIZ’s purpose is to promote international cooperation for sustainable
development and international education work.
Established on 1 January 2011, GIZ brings together under one roof the
long-standing expertise of DED, GTZ und InWEnt.
– Implements commissions for the German federal government and
other national and international, public and private-sector clients.
– Furthers political, economic, ecological and social development
worldwide, and so improves people’s living conditions.
– Provides services that support complex development and reform
processes.
Operates in more than 130 countries worldwide.
Employs approximately 17,000 staff members worldwide, more than 60%
of whom are local personnel.
03.10.17
Seite
4
Jakarta, July
2011
4
GIZ in Indonesia at a glance
3 priority areas:
•Private Sector
Indonesian-German
Government negotiations
Development
development cooperation to renew priority areas
•Good Governance
through GTZ
•Climate Change
1975
2007
3 Climate Change programmes:
•Environment: “PAKLIM”
•Forest: “FORCLIME”
•Transport: “SUTIP”
03.10.17
Seite
5
Jakarta, July
2011
5
PAKLIM (‘Policy Advice for Environment and Climate Change’)
What we do?
•Empowering Indonesian
public and private
stakeholders to implement
climate change strategies
and instruments
How we work?
Our approach
Supporting Indonesian partners
through:
• Policy advice
• Capacity development
• Technical assistance
• Multi-level
• Multi-stakeholder
• Cross-sectoral
PAKLIM
Policy advice
Cities and urban
areas
Industries and
industrial estates
03.10.17
Seite
6
Jakarta, July
2011
6
Climate Change
in Indonesia
03.10.17
Seite
7
Jakarta, July
2011
7
Integration of climate change into Indonesian development strategy
MILESTONES:
The Government of Indonesia (GOI) puts
CC on the political agenda after the Climate
Summit in Bali (2007)
RPJP/
RPJM
Climate
Summits
Bali
Road
Map
G20Pittsbur
gh
RAN-GRK
ICCSR
2009 the Indonesian president announces a
GHG emission mitigation target by 2020
The GOI officially launched its Climate
Change Sectoral Roadmap (ICCSR)
regarding mitigation in March 2010
The National Action Plan for GHG Emission
Reduction (RAN-GRK) defines the required
measures per sector for reaching the target
Nationally Appropriate Mitigation Actions
(NAMAs)
03.10.17
Seite
8
Jakarta, July
2011
8
Scenario of 2020 GHG emission reduction and RAN GRK
President commitment G-20 Pittsburgh and
COP15
to reduce te GHG emission in 2020
= 41%
With international
support
-15%
Unilateral (without
international support)
-26%
Forestry & peat
Waste
land
Waste
Agriculture
Industry
Energy &
transport
RAN-GRK
03.10.17
Seite
9
Jakarta, July
2011
9
The role of Indonesia’s private sector in climate change mitigation
•
The Private Sector is the driving force for development and growth in Indonesia
(Indonesia is said to soon become the 2 nd “I” in BRIC)
•
With this growth, however, it is also an increasingly important contributor to
Indonesia’s emission levels
– E.g. due to the large amounts of energy consumed for companies’ production
activities and daily operations, process-related generation of GHG and waste
produced in the various industry sectors, commercial land use conversion
•
The Private Sector is expected to play an essential role in Indonesia’s mitigation
regime to achieve the national mitigation targets in the defined RAN GRK
sectors
Companies predispose of important competences, expertise and largely also
financial means for successfully tackling the issues posed by climate change
and for helping to reduce GHG emissions by applying the right management
and investments approaches
03.10.17
Seite
10
Jakarta, July
2011
10
Public expectations towards the private sector and ‘routes’ for involvement
•
•
•
•
•
•
Invest in and implement new technologies
Engage in mitigation measures, e.g. energy efficiency improvements,
fuel switching, major process modifications
Esp. multinational corporations (MNCs) and large national companies
to act as “climate champions” for other (national) businesses
Provide qualified personnel, transfer skills and experiences
Show corporate social responsibility (CSR)
Do research and innovate
Routes for
involvement
Policies and
regulations
Economic and
fiscal instruments
Voluntary
actions
03.10.17
Seite
11
Jakarta, July
2011
11
Example:
Industry
sector in Indonesia and climate change
Mitigation
Target
by 2020
•
The industry sector accounts for 35%* of emissions from fossil fuel in Indonesia due to:
• Energy consumption (accounting for 48% of overall final energy consumption in
Indonesia)
• Production processes
• Waste
•
Challenge: balance the two overarching policies objectives:
• Improve industry competitiveness
• Achieve low-carbon industrial development
Largest GHG emitting industry sectors are:
•
The RAN-GRK defines mitigation strategies
in the industry sector with regard to:
- Energy efficiency
- Alternative energy
- Efficient production processes
*World Bank (2008): Low carbon development options for Indonesia
Cement
Iron & steel
Pulp & paper
Fertilizer/ other chemicals
Textiles
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Jakarta, July
2011
12
SoMitigation
far, only few
policies
instruments targeted to mitigate climate change
Target
byand
2020
Examples of existing regulatory foci and initiatives
Energy
• Energy diversification (PerPres No. 5/2006)
• Energy efficiency and conservation (e.g. gov.
reg. No. 70/2009)
• Development of green industry
Air pollution
• Regulate emissions from static and
non/static sources (emission standards set
for 4 industries and for selected equipment)
Waste management
• Control waste management activity (esp.
hazardous waste) (gov. reg. No. 18/1999)
• Waste utilization (gov. regulation
No.18/2008)
Subsidized loans
• Soft loan programmes for green investments
from different donors (e.g. Japan, Germany)
via MoEnv.
Tax subsidies
• For customs duty, sales tax (PPN), income
tax (Pph) – for energy and industry sectors
Fiscal subsidies
• For investment in machinery equipment to
improve industrial competitiveness
• Support for investment in CC mitigation
technology
A challenge for the GOI, but
An opportunity for the private sector to become involved and actively
shape the future boundary conditions
For instance in partnership with PAKLIM
03.10.17
Seite
13
Jakarta, July
2011
13
PAKLIM private sector cooperation – Overview
Projects/ Initiatives
develoPPP.de
integrated
DPP
PAKLIM Call for
Proposals 2011
Private Sector
Dialogues
• Merck: “Environmentally Sound Management of
Chemical Waste”; 12/09-12/12; 1,4 Mio.€ (STA)
• OSRAM: “Energy Saving Movement”; 12/09-06/11; 400T€
• Merck customers (e.g. laboratories);
KLH
• Elementary schools & SMKs, local
communities, Indonesian population
• Adidas: “Greening Global Supply Chains – Focus on
Energy”; 05/11-05/13; 168T€
• OSRAM: “Energy Efficient Street Lighting / LED Street
Lighting”; 05/11-12/12; 184T€
• Service providers, local footwear &
apparel suppliers; MoI, ESDM
• Local government; urban population
• “Innovations for a low-carbon future in the Indonesian
Industries”
• Technology providers (D, EU)
• local MNC, SOE, national companies
• Empirical study on “Business and Climate Change in
Indonesia”
• Interviews a.o. with Siemens, SAP, APP,
Sinarmas, Martha Tilaar, Chandra Asri,
DB Schenker
• local CSR networks, associations; KLH
• “Green” CSR
Policy Advice
Partner / Target group
• NAMA (overall concept and sectors industry, energy,
waste, energy efficiency in urban areas)
• Voluntary Partnership Agreements
• ICCTF (Indonesia Climate Change Trust Fund), Green
Finance
• Bappenas, MoI, ESDM, MoHA
• MoI; cement industry
• Bappenas, MoF; Bank of Indonesia
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Jakarta, July
2011
14
PAKLIM Call for Proposals 2011
“Innovations for a low-carbon future
in the Indonesian industries”
Development Partnerships with the Private Sector (DPP)
03.10.17
Seite 15
PAKLIM Call for Proposals 2011
•
Aims to establish new partnerships with private companies to jointly develop
innovative projects under the title of:
“Innovations for a low-carbon future in the Indonesian industries”
Realize synergies between public and private interests:
PAKLIM
• Development of NAMAs (Nationally
Appropriate Mitigation Actions) in
the Indonesian industry sector
• GHG reductions through e.g.
increase in energy efficiency, fuel
switching, and/ or major process
modifications
DPP
Private Sector
• Launching innovative technologies in the
Indonesian market
• ‘Greening’ the supply chain
• Qualified personnel
• CSR and good relations with clients and
people in the surrounding community
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Jakarta, July
2011
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Who should participate?
National and international companies already active in Indonesia and
interested in:
• Investing and jointly implementing innovative technologies and energy
efficiency measures in their own production sites and supply chains.
• Using their CSR funds and experiences for building new climate change
business models and with this to help the local community and to become
climate 'champions'.
Technology providers interested in entering the Indonesian market and applying innovative
technological business models for industrial enterprises and/ or industrial estates, preferably in the
areas of:
•
•
•
Process heat/ heat recovery (CHP), co-generation
Efficient boiler and motor systems; automatisation
Fuel switching; renewable energy applications; recycling, efficient material use
Any company with an innovative proposal for initiating jointly with PAKLIM a
model for the implementation of NAMAs in the Indonesian industry sector.
03.10.17
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Jakarta, July
2011
17
Requirements for DPP
•
•
•
•
•
•
All companies (local, state, regional, international) can submit their proposal
Financial robustness of the company to ensure project funding and
sustainability
Complementarity: PAKLIM's and the private sector’s contributions must
complement each other in such a way that the cooperation enables the two
partners to achieve their objectives more cost-effectively, more efficiently and
more rapidly
Subsidiarity: PAKLIM will provide contribution only if the private partner
would not be able to implement the project without PAKLIM as the public
partner and the measure is not required by law
At least 50% of the costs (prime costs) are borne by the company.
PAKLIM will provide input between EUR 100,000 - EUR 200,000 into the
project. The proposal may also comprise direct inputs by PAKLIM, such as
technical, intercultural or managerial expertise
Project start envisaged for early 2012 with a duration of 1,5 to 2 years
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2011
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What are the criteria?
Contribution to the
achievement of PAKLIM
objectives
Accordance with
development policy
Criteria for
DPP
Joint objectives &
substantial contribution
of the company
Subsidiarity &
competitive neutrality
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2011
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How to proceed?
• Develop project idea
• Fill out entry form
1
• Submitt proposal by August 31st, 2011
2
• Assessment of proposals by PAKLIM
• Feedback to applicants by October 2011
• Joint development of full project outline for selected
3
proposal(s)
• Agreement and contract signing
4
• Implementation of DPP from early 2012 to end of 2013
[email protected]
www.paklim.org/development-partnerships/call-for-proposals/
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2011
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PAKLIM: KADIN’s opportunities for cooperation
Participate in stakeholder dialogues and workshops representing the private
sector
Support the Call for Proposals for new development partnerships to support
the NAMA strategy (energy efficiency, renewable energy applications, greening
the supply chains)
Support the public awareness campaigns for a low carbon development
Facilitate Voluntary Partnerships (VP) between the MoInd and enterprises
Participate in the development of a low carbon growth strategy (East
Kalimantan, Java)
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2011
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Contact details
Dr. Dieter Brulez
Dr. Maren Breuer
PAKLIM - Policy Advice for Environment and Climate Change
c/o Kementerian Negara Lingkungan Hidup (KLH)
Gedung B Lt.5, Jl. DI Panjaitan Kav 24
13410 Jakarta, Indonesia
T: +62-21-8517186
F: +62-21-8516110
E: [email protected] or [email protected]
I: www.giz.de ; www.paklim.org
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2011
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Project Examples
“Development Partnerships with the Private Sector (DPP)”
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2011
23
Indonesia
Challenge
Greening global supply
chains – Focus on energy
The industry sector accounts for high amounts of GHG emissions
due to energy consumption, inefficient production processes &
industrial waste.
Partners:
Adidas Group (Sourcing
Ltd. Asia)
05/2011 – 05/2013
Volume: 268.000 €
PAKLIM: 133.000 €
High need & potential for energy efficiency (EE) measures.
Approach
Capacity building for service providers and training & technical
assistance for 16 suppliers in the apparel & footwear industries.
Energy audits and tools for the measurement, monitoring and
reporting of energy performance.
Implementation of financially feasible EE measures.
Impact
Qualified service providers, enhanced capacities of selected
suppliers and reduction of the factories’ environmental footprint.
Model for the measurement and reporting of climate-related
values in supply chains available.
03.10.17
Seite
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Jakarta, July
2011
24
Indonesia
Energy Efficient Street
Lighting / LED Street
Lighting
Challenge
Lack of efficient energy due to outdated technologies in commercial
and residential buildings as well as public infrastructural services.
High potential for cost and energy savings in urban areas.
Approach
Partners:
PT OSRAM Indonesia
Assessment of technical & economic feasibility of LED street
lighting.
05/2011 – 12/2012
Volume: 184.000 €
PAKLIM: 92.000 €
Replacement of conventional lights by LED based on an adequate
metering system, lighting management, and a consumption-based
payment for the energy used by public street lighting.
Identification of financing options for local governments.
Development of a handbook for energy, cost and CO2 savings
through LED street lighting.
Impact
Provides a model for NAMA on the energy demand side.
Cities are able to properly measure used energy and reduce local
energy costs.
03.10.17
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25
Jakarta, July
2011
25
Indonesia
Guideline on Co-processing
Waste Materials in Cement
Production
Challenge
High environmental impacts from waste, unsafe disposal of
hazardous waste.
Cement industry has high potential to improve waste management
by applying co-processing.
Partners:
Holcim Group, Indocement
Approach
11/2006 – 11/2009
Volume: 90.000 €
Public (ProLH): 30.000€
Transfer of ‘lessons learned’ from developed countries.
Development of a guideline with the requirements and standards for
co-processing.
Capacity building before launching of co-processing.
Impact
Decrease the environmental impacts of waste.
Decrease greenhouse gas emissions.
Improve waste management and decrease waste handling costs.
03.10.17
Seite
26
Jakarta, July
2011
26
Indonesia
Challenge
Energy Saving Movement
> 19% of total energy consumption is attributed to the use of
artificial light.
Partners:
PT OSRAM Indonesia
12/2009 – 06/2011
Volume: 400.000 €
Public: 200.000€
Common use of energy wasting light bulbs.
Approach
Integrated approach that includes an upgrade of lighting systems at
selected schools and households combined with educational
measures on energy efficiency.
Students participate in math and essay competitions with focus on
energy saving.
Nationwide media campaign about energy efficiency.
Impact
Energy consumption has successfully been decreased by more
than 50 percent.
The learning module about energy efficiency is being implemented
in vocational schools and will be part of lessons for more than
10.000 students.
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Jakarta, July
2011
27
Indonesia
Environmentally Sound
Management of Chemical
Waste
Partners:
Merck
12/2009 – 12/2012
Volume: 1.4 million €
Public: 700.000 €
Challenge
Growing volume of chemical waste is creating a challenge for
local and national authorities.
No management expertise in the prevention of health and
environment hazards.
Approach
Coordination of training units for transfer of expertise at the
micro and macro levels.
Implementation of chemical waste management systems.
Impact
Local SMEs are receiving technical support.
Meso level organisations are applying innovative chemical
waste management strategies.
Partner countries are harmonizing their frameworks within
ASEAN.
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Jakarta, July
2011
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Indonesia, Nicaragua,
Honduras, Guatemala
Co-financing mechanisms
for hydropower plants
Challenge
The majority of the population, especially in rural areas, has no
or just unsteady access to electric energy.
Current energy sources are not sustainable.
Partners:
South Pole
Approach
12/2007 – 02/2011
Volume: 900.000 €
Public: 440.000 €
Testing, consulting and training for and documentation of
implementation of co-financing mechanisms through Certified
Emission Reductions (CER).
Impact
Small hydropower plants receive financing through CER.
Permanent co-financing and improved conditions for Clean
Development Mechanisms (CDM).
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Jakarta, July
2011
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BACKUP
03.10.17
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Portfolio
–
Cooperation with the Private Sector on
“Environment and Climate Change”
Details
03.10.17
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Jakarta, July
2011
31
Cooperation with the Private Sector on Climate Change Mitigation (I)
Integrated DPP (PAKLIM funded)
adidas
Basics
“Greening Global
Supply Chains –
Focus on Energy”
• 05/11-05/13
• 168T€ (PAKLIM 133T €)
Osram II
“Energy Efficient/
LED Street
Lighting”
• 05/11-12/12
• 184T€ (PAKLIM 92T €)
Facility DPP (develoPPP.de funded)
Merck
Osram I
“Environmentally
Sound Management
of Chemical Waste”
• 12/09-12/12
• 1,4 Mio.€ (STA) (PPP-
“Energy Saving
Movement”
• 12/09-06/11
• 400T€ (PPP-facility
200T €)
facility 700T €)
Approach
Target Group /
Partner
• Capacity building for
service providers
and selected
suppliers
• Implementation of
financially feasible
EE measures
• Service providers
• Local footwear &
apparel suppliers
• MoI, ESDM, KLH
• Pilot testing of EE/
LED street lighting
• Handbook for
energy, cost & CO2
savings through LED
street lighting
• Implementation of
chemical waste
managt. systems
• Coordination of
training units for
transfer of expertise
• Upgrade of lighting
systems at selected
schools &households
• Educat. measures &
nationwide media
campaign on EE
• Urban population
• Local government,
KLH
• Merck customers
(e.g. laboratories)
• KLH
• Elementary schools &
SMKs
• Local communities
• Indonesian
population
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Jakarta, July
2011
32
Cooperation with the Private Sector on Climate Change Mitigation (II)
NAMA - Nationally Appropriate Mitigation Actions
Support development of the overall strategic concept
Give sector specific advice for industry, waste, energy efficiency (EE) in urban areas
Voluntary partnership agreements (VPA)
Facilitate GOI and selected industries to reduce GHG emissions
Policy framework stipulating certain actions, e.g. EE standards or GHG emission limits
Economic and fiscal instruments, incentive schemes to ease private sector
participation
ICCTF (Indonesia Climate Change Trust Fund) as a funding mechanism and facility for
mitigation and adaptation
Further the transfer of appropriate technologies to be used by the private sector and
foster research & development for such innovations in Indonesia itself
03.10.17
Seite
33
Jakarta, July
2011
33
Cooperation with the Private Sector on Climate Change Mitigation (III)
Empirical study on “Private sector involvement in climate change activities in Indonesia”
Interviews a.o. with Siemens, SAP, APP, Sinarmas, Martha Tilaar, PT Chandra Asri,
DB Schenker, Holcim, PT Indocement, PT Petrokimia Gresik, PT Chandra Asri, PT
Semen Gresik
“Green” CSR
Participation in KLH working group on establishing guideline for “green” CSR and
criteria for evaluation and official recognition
Initiation of roundtable / stakeholder exchanges on CSR
Implementation and communication of pilot projects and best practices
Provision of information and technical assistance to the private sector
Cooperation with chambers and business associations, e.g. for joint awareness
campaigns for a low carbon development
03.10.17
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Jakarta, July
2011
34
k
„Business and Climate Change in Indonesia“
7 July 2011
03.10.17
Seite 1
Overall objective and starting points
Objective
Intensify the cooperation between GIZ/ PAKLIM and KADIN to jointly
work on increasing awareness and engaging Indonesian companies
in climate change mitigation activities in Indonesia
Starting points
PAKLIM’s commitment to strengthen its private sector engagement
and Call for Proposals 2011
Kadin’s White Paper on the issues of Climate Change and Green
Growth
03.10.17
Seite
2
Jakarta, July
2011
2
Contents
Introduction GIZ / PAKLIM in Indonesia
Climate change in Indonesia
Integration of climate change into national development planning
Private sector involvement in climate change mitigation
Focus: The industry sector and climate change
PAKLIM portfolio on cooperation with the private sector
PAKLIM Call for Proposals
Cooperation opportunities between KADIN and PAKLIM
03.10.17
Seite
3
Jakarta, July
2011
3
Who is GIZ?
•
•
•
•
•
A 100% federally owned, public-benefit enterprise, that supports the
German Government in achieving its development policy goals.
GIZ’s purpose is to promote international cooperation for sustainable
development and international education work.
Established on 1 January 2011, GIZ brings together under one roof the
long-standing expertise of DED, GTZ und InWEnt.
– Implements commissions for the German federal government and
other national and international, public and private-sector clients.
– Furthers political, economic, ecological and social development
worldwide, and so improves people’s living conditions.
– Provides services that support complex development and reform
processes.
Operates in more than 130 countries worldwide.
Employs approximately 17,000 staff members worldwide, more than 60%
of whom are local personnel.
03.10.17
Seite
4
Jakarta, July
2011
4
GIZ in Indonesia at a glance
3 priority areas:
•Private Sector
Indonesian-German
Government negotiations
Development
development cooperation to renew priority areas
•Good Governance
through GTZ
•Climate Change
1975
2007
3 Climate Change programmes:
•Environment: “PAKLIM”
•Forest: “FORCLIME”
•Transport: “SUTIP”
03.10.17
Seite
5
Jakarta, July
2011
5
PAKLIM (‘Policy Advice for Environment and Climate Change’)
What we do?
•Empowering Indonesian
public and private
stakeholders to implement
climate change strategies
and instruments
How we work?
Our approach
Supporting Indonesian partners
through:
• Policy advice
• Capacity development
• Technical assistance
• Multi-level
• Multi-stakeholder
• Cross-sectoral
PAKLIM
Policy advice
Cities and urban
areas
Industries and
industrial estates
03.10.17
Seite
6
Jakarta, July
2011
6
Climate Change
in Indonesia
03.10.17
Seite
7
Jakarta, July
2011
7
Integration of climate change into Indonesian development strategy
MILESTONES:
The Government of Indonesia (GOI) puts
CC on the political agenda after the Climate
Summit in Bali (2007)
RPJP/
RPJM
Climate
Summits
Bali
Road
Map
G20Pittsbur
gh
RAN-GRK
ICCSR
2009 the Indonesian president announces a
GHG emission mitigation target by 2020
The GOI officially launched its Climate
Change Sectoral Roadmap (ICCSR)
regarding mitigation in March 2010
The National Action Plan for GHG Emission
Reduction (RAN-GRK) defines the required
measures per sector for reaching the target
Nationally Appropriate Mitigation Actions
(NAMAs)
03.10.17
Seite
8
Jakarta, July
2011
8
Scenario of 2020 GHG emission reduction and RAN GRK
President commitment G-20 Pittsburgh and
COP15
to reduce te GHG emission in 2020
= 41%
With international
support
-15%
Unilateral (without
international support)
-26%
Forestry & peat
Waste
land
Waste
Agriculture
Industry
Energy &
transport
RAN-GRK
03.10.17
Seite
9
Jakarta, July
2011
9
The role of Indonesia’s private sector in climate change mitigation
•
The Private Sector is the driving force for development and growth in Indonesia
(Indonesia is said to soon become the 2 nd “I” in BRIC)
•
With this growth, however, it is also an increasingly important contributor to
Indonesia’s emission levels
– E.g. due to the large amounts of energy consumed for companies’ production
activities and daily operations, process-related generation of GHG and waste
produced in the various industry sectors, commercial land use conversion
•
The Private Sector is expected to play an essential role in Indonesia’s mitigation
regime to achieve the national mitigation targets in the defined RAN GRK
sectors
Companies predispose of important competences, expertise and largely also
financial means for successfully tackling the issues posed by climate change
and for helping to reduce GHG emissions by applying the right management
and investments approaches
03.10.17
Seite
10
Jakarta, July
2011
10
Public expectations towards the private sector and ‘routes’ for involvement
•
•
•
•
•
•
Invest in and implement new technologies
Engage in mitigation measures, e.g. energy efficiency improvements,
fuel switching, major process modifications
Esp. multinational corporations (MNCs) and large national companies
to act as “climate champions” for other (national) businesses
Provide qualified personnel, transfer skills and experiences
Show corporate social responsibility (CSR)
Do research and innovate
Routes for
involvement
Policies and
regulations
Economic and
fiscal instruments
Voluntary
actions
03.10.17
Seite
11
Jakarta, July
2011
11
Example:
Industry
sector in Indonesia and climate change
Mitigation
Target
by 2020
•
The industry sector accounts for 35%* of emissions from fossil fuel in Indonesia due to:
• Energy consumption (accounting for 48% of overall final energy consumption in
Indonesia)
• Production processes
• Waste
•
Challenge: balance the two overarching policies objectives:
• Improve industry competitiveness
• Achieve low-carbon industrial development
Largest GHG emitting industry sectors are:
•
The RAN-GRK defines mitigation strategies
in the industry sector with regard to:
- Energy efficiency
- Alternative energy
- Efficient production processes
*World Bank (2008): Low carbon development options for Indonesia
Cement
Iron & steel
Pulp & paper
Fertilizer/ other chemicals
Textiles
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SoMitigation
far, only few
policies
instruments targeted to mitigate climate change
Target
byand
2020
Examples of existing regulatory foci and initiatives
Energy
• Energy diversification (PerPres No. 5/2006)
• Energy efficiency and conservation (e.g. gov.
reg. No. 70/2009)
• Development of green industry
Air pollution
• Regulate emissions from static and
non/static sources (emission standards set
for 4 industries and for selected equipment)
Waste management
• Control waste management activity (esp.
hazardous waste) (gov. reg. No. 18/1999)
• Waste utilization (gov. regulation
No.18/2008)
Subsidized loans
• Soft loan programmes for green investments
from different donors (e.g. Japan, Germany)
via MoEnv.
Tax subsidies
• For customs duty, sales tax (PPN), income
tax (Pph) – for energy and industry sectors
Fiscal subsidies
• For investment in machinery equipment to
improve industrial competitiveness
• Support for investment in CC mitigation
technology
A challenge for the GOI, but
An opportunity for the private sector to become involved and actively
shape the future boundary conditions
For instance in partnership with PAKLIM
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PAKLIM private sector cooperation – Overview
Projects/ Initiatives
develoPPP.de
integrated
DPP
PAKLIM Call for
Proposals 2011
Private Sector
Dialogues
• Merck: “Environmentally Sound Management of
Chemical Waste”; 12/09-12/12; 1,4 Mio.€ (STA)
• OSRAM: “Energy Saving Movement”; 12/09-06/11; 400T€
• Merck customers (e.g. laboratories);
KLH
• Elementary schools & SMKs, local
communities, Indonesian population
• Adidas: “Greening Global Supply Chains – Focus on
Energy”; 05/11-05/13; 168T€
• OSRAM: “Energy Efficient Street Lighting / LED Street
Lighting”; 05/11-12/12; 184T€
• Service providers, local footwear &
apparel suppliers; MoI, ESDM
• Local government; urban population
• “Innovations for a low-carbon future in the Indonesian
Industries”
• Technology providers (D, EU)
• local MNC, SOE, national companies
• Empirical study on “Business and Climate Change in
Indonesia”
• Interviews a.o. with Siemens, SAP, APP,
Sinarmas, Martha Tilaar, Chandra Asri,
DB Schenker
• local CSR networks, associations; KLH
• “Green” CSR
Policy Advice
Partner / Target group
• NAMA (overall concept and sectors industry, energy,
waste, energy efficiency in urban areas)
• Voluntary Partnership Agreements
• ICCTF (Indonesia Climate Change Trust Fund), Green
Finance
• Bappenas, MoI, ESDM, MoHA
• MoI; cement industry
• Bappenas, MoF; Bank of Indonesia
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PAKLIM Call for Proposals 2011
“Innovations for a low-carbon future
in the Indonesian industries”
Development Partnerships with the Private Sector (DPP)
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PAKLIM Call for Proposals 2011
•
Aims to establish new partnerships with private companies to jointly develop
innovative projects under the title of:
“Innovations for a low-carbon future in the Indonesian industries”
Realize synergies between public and private interests:
PAKLIM
• Development of NAMAs (Nationally
Appropriate Mitigation Actions) in
the Indonesian industry sector
• GHG reductions through e.g.
increase in energy efficiency, fuel
switching, and/ or major process
modifications
DPP
Private Sector
• Launching innovative technologies in the
Indonesian market
• ‘Greening’ the supply chain
• Qualified personnel
• CSR and good relations with clients and
people in the surrounding community
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Who should participate?
National and international companies already active in Indonesia and
interested in:
• Investing and jointly implementing innovative technologies and energy
efficiency measures in their own production sites and supply chains.
• Using their CSR funds and experiences for building new climate change
business models and with this to help the local community and to become
climate 'champions'.
Technology providers interested in entering the Indonesian market and applying innovative
technological business models for industrial enterprises and/ or industrial estates, preferably in the
areas of:
•
•
•
Process heat/ heat recovery (CHP), co-generation
Efficient boiler and motor systems; automatisation
Fuel switching; renewable energy applications; recycling, efficient material use
Any company with an innovative proposal for initiating jointly with PAKLIM a
model for the implementation of NAMAs in the Indonesian industry sector.
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Requirements for DPP
•
•
•
•
•
•
All companies (local, state, regional, international) can submit their proposal
Financial robustness of the company to ensure project funding and
sustainability
Complementarity: PAKLIM's and the private sector’s contributions must
complement each other in such a way that the cooperation enables the two
partners to achieve their objectives more cost-effectively, more efficiently and
more rapidly
Subsidiarity: PAKLIM will provide contribution only if the private partner
would not be able to implement the project without PAKLIM as the public
partner and the measure is not required by law
At least 50% of the costs (prime costs) are borne by the company.
PAKLIM will provide input between EUR 100,000 - EUR 200,000 into the
project. The proposal may also comprise direct inputs by PAKLIM, such as
technical, intercultural or managerial expertise
Project start envisaged for early 2012 with a duration of 1,5 to 2 years
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What are the criteria?
Contribution to the
achievement of PAKLIM
objectives
Accordance with
development policy
Criteria for
DPP
Joint objectives &
substantial contribution
of the company
Subsidiarity &
competitive neutrality
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How to proceed?
• Develop project idea
• Fill out entry form
1
• Submitt proposal by August 31st, 2011
2
• Assessment of proposals by PAKLIM
• Feedback to applicants by October 2011
• Joint development of full project outline for selected
3
proposal(s)
• Agreement and contract signing
4
• Implementation of DPP from early 2012 to end of 2013
[email protected]
www.paklim.org/development-partnerships/call-for-proposals/
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PAKLIM: KADIN’s opportunities for cooperation
Participate in stakeholder dialogues and workshops representing the private
sector
Support the Call for Proposals for new development partnerships to support
the NAMA strategy (energy efficiency, renewable energy applications, greening
the supply chains)
Support the public awareness campaigns for a low carbon development
Facilitate Voluntary Partnerships (VP) between the MoInd and enterprises
Participate in the development of a low carbon growth strategy (East
Kalimantan, Java)
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Contact details
Dr. Dieter Brulez
Dr. Maren Breuer
PAKLIM - Policy Advice for Environment and Climate Change
c/o Kementerian Negara Lingkungan Hidup (KLH)
Gedung B Lt.5, Jl. DI Panjaitan Kav 24
13410 Jakarta, Indonesia
T: +62-21-8517186
F: +62-21-8516110
E: [email protected] or [email protected]
I: www.giz.de ; www.paklim.org
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Project Examples
“Development Partnerships with the Private Sector (DPP)”
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Indonesia
Challenge
Greening global supply
chains – Focus on energy
The industry sector accounts for high amounts of GHG emissions
due to energy consumption, inefficient production processes &
industrial waste.
Partners:
Adidas Group (Sourcing
Ltd. Asia)
05/2011 – 05/2013
Volume: 268.000 €
PAKLIM: 133.000 €
High need & potential for energy efficiency (EE) measures.
Approach
Capacity building for service providers and training & technical
assistance for 16 suppliers in the apparel & footwear industries.
Energy audits and tools for the measurement, monitoring and
reporting of energy performance.
Implementation of financially feasible EE measures.
Impact
Qualified service providers, enhanced capacities of selected
suppliers and reduction of the factories’ environmental footprint.
Model for the measurement and reporting of climate-related
values in supply chains available.
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Indonesia
Energy Efficient Street
Lighting / LED Street
Lighting
Challenge
Lack of efficient energy due to outdated technologies in commercial
and residential buildings as well as public infrastructural services.
High potential for cost and energy savings in urban areas.
Approach
Partners:
PT OSRAM Indonesia
Assessment of technical & economic feasibility of LED street
lighting.
05/2011 – 12/2012
Volume: 184.000 €
PAKLIM: 92.000 €
Replacement of conventional lights by LED based on an adequate
metering system, lighting management, and a consumption-based
payment for the energy used by public street lighting.
Identification of financing options for local governments.
Development of a handbook for energy, cost and CO2 savings
through LED street lighting.
Impact
Provides a model for NAMA on the energy demand side.
Cities are able to properly measure used energy and reduce local
energy costs.
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Indonesia
Guideline on Co-processing
Waste Materials in Cement
Production
Challenge
High environmental impacts from waste, unsafe disposal of
hazardous waste.
Cement industry has high potential to improve waste management
by applying co-processing.
Partners:
Holcim Group, Indocement
Approach
11/2006 – 11/2009
Volume: 90.000 €
Public (ProLH): 30.000€
Transfer of ‘lessons learned’ from developed countries.
Development of a guideline with the requirements and standards for
co-processing.
Capacity building before launching of co-processing.
Impact
Decrease the environmental impacts of waste.
Decrease greenhouse gas emissions.
Improve waste management and decrease waste handling costs.
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Indonesia
Challenge
Energy Saving Movement
> 19% of total energy consumption is attributed to the use of
artificial light.
Partners:
PT OSRAM Indonesia
12/2009 – 06/2011
Volume: 400.000 €
Public: 200.000€
Common use of energy wasting light bulbs.
Approach
Integrated approach that includes an upgrade of lighting systems at
selected schools and households combined with educational
measures on energy efficiency.
Students participate in math and essay competitions with focus on
energy saving.
Nationwide media campaign about energy efficiency.
Impact
Energy consumption has successfully been decreased by more
than 50 percent.
The learning module about energy efficiency is being implemented
in vocational schools and will be part of lessons for more than
10.000 students.
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Indonesia
Environmentally Sound
Management of Chemical
Waste
Partners:
Merck
12/2009 – 12/2012
Volume: 1.4 million €
Public: 700.000 €
Challenge
Growing volume of chemical waste is creating a challenge for
local and national authorities.
No management expertise in the prevention of health and
environment hazards.
Approach
Coordination of training units for transfer of expertise at the
micro and macro levels.
Implementation of chemical waste management systems.
Impact
Local SMEs are receiving technical support.
Meso level organisations are applying innovative chemical
waste management strategies.
Partner countries are harmonizing their frameworks within
ASEAN.
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Indonesia, Nicaragua,
Honduras, Guatemala
Co-financing mechanisms
for hydropower plants
Challenge
The majority of the population, especially in rural areas, has no
or just unsteady access to electric energy.
Current energy sources are not sustainable.
Partners:
South Pole
Approach
12/2007 – 02/2011
Volume: 900.000 €
Public: 440.000 €
Testing, consulting and training for and documentation of
implementation of co-financing mechanisms through Certified
Emission Reductions (CER).
Impact
Small hydropower plants receive financing through CER.
Permanent co-financing and improved conditions for Clean
Development Mechanisms (CDM).
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BACKUP
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Portfolio
–
Cooperation with the Private Sector on
“Environment and Climate Change”
Details
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Cooperation with the Private Sector on Climate Change Mitigation (I)
Integrated DPP (PAKLIM funded)
adidas
Basics
“Greening Global
Supply Chains –
Focus on Energy”
• 05/11-05/13
• 168T€ (PAKLIM 133T €)
Osram II
“Energy Efficient/
LED Street
Lighting”
• 05/11-12/12
• 184T€ (PAKLIM 92T €)
Facility DPP (develoPPP.de funded)
Merck
Osram I
“Environmentally
Sound Management
of Chemical Waste”
• 12/09-12/12
• 1,4 Mio.€ (STA) (PPP-
“Energy Saving
Movement”
• 12/09-06/11
• 400T€ (PPP-facility
200T €)
facility 700T €)
Approach
Target Group /
Partner
• Capacity building for
service providers
and selected
suppliers
• Implementation of
financially feasible
EE measures
• Service providers
• Local footwear &
apparel suppliers
• MoI, ESDM, KLH
• Pilot testing of EE/
LED street lighting
• Handbook for
energy, cost & CO2
savings through LED
street lighting
• Implementation of
chemical waste
managt. systems
• Coordination of
training units for
transfer of expertise
• Upgrade of lighting
systems at selected
schools &households
• Educat. measures &
nationwide media
campaign on EE
• Urban population
• Local government,
KLH
• Merck customers
(e.g. laboratories)
• KLH
• Elementary schools &
SMKs
• Local communities
• Indonesian
population
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Cooperation with the Private Sector on Climate Change Mitigation (II)
NAMA - Nationally Appropriate Mitigation Actions
Support development of the overall strategic concept
Give sector specific advice for industry, waste, energy efficiency (EE) in urban areas
Voluntary partnership agreements (VPA)
Facilitate GOI and selected industries to reduce GHG emissions
Policy framework stipulating certain actions, e.g. EE standards or GHG emission limits
Economic and fiscal instruments, incentive schemes to ease private sector
participation
ICCTF (Indonesia Climate Change Trust Fund) as a funding mechanism and facility for
mitigation and adaptation
Further the transfer of appropriate technologies to be used by the private sector and
foster research & development for such innovations in Indonesia itself
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Cooperation with the Private Sector on Climate Change Mitigation (III)
Empirical study on “Private sector involvement in climate change activities in Indonesia”
Interviews a.o. with Siemens, SAP, APP, Sinarmas, Martha Tilaar, PT Chandra Asri,
DB Schenker, Holcim, PT Indocement, PT Petrokimia Gresik, PT Chandra Asri, PT
Semen Gresik
“Green” CSR
Participation in KLH working group on establishing guideline for “green” CSR and
criteria for evaluation and official recognition
Initiation of roundtable / stakeholder exchanges on CSR
Implementation and communication of pilot projects and best practices
Provision of information and technical assistance to the private sector
Cooperation with chambers and business associations, e.g. for joint awareness
campaigns for a low carbon development
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