SATYA WIDYA YUDHA
CIRCULAR ECONOMY AND INDONESIA’S NDC:CHALLENGES AND OPPORTUNITIES FOR A SUSTAINABLE FUTURE
Circular Economy ForumJakarta Convention Center
12 July 2017
Vice Chairman of Commission VII & Chairman of the Green Economy CaucusThe House of Representatives of the Republic of Indonesia
CIRCULAR ECONOMYTheoretical basis: David W. Pearce & R. Kerry Turner, 1990
Primary thesisThe current economic system does not provide any real incentive for recycling; almost all products; almost all products are manufactured to be ultimately disposed of.
The future: circular economyReuse, refurbish, remanufacture, recycle
Status quo: linear economyTake, make, dispose -> WASTEFUL
NO WASTEIn2015theEUimplementedanewCircularEconomyPackage,designedto
encouragethesystembyfundingimplementaAoneffortsaswellasseCngupregulaAonsonwastethatincenAvizerecyclingprograms.
CIRCULAR ECONOMYResponding to global sustainability problems
Global Household Expenditure1970: USD7 trillion
2012: USD25 trillionGlobal GDP (Business As Usual)
2010: -1.6%
2030: -3.2%
Waste2025: ± 2.2 trillion kilograms of waste
produced in urban settings alone
Commodity PricesIncreased 3x in the last 10 years
Climate Change & Environmental Effects
Consistently worsening conditions from year to year as a result of rising industrial
and household emissions
Global Resource Needs2014: 50 billion tons
2050: 130 billion ton
Annual Raw Material ExtractionIncreased 3x in the last 40 years
CIRCULAR ECONOMYFundamental and comprehensive change in economic activities
BUSINESSASUSUAL
Exampleofcirculareconomy:TheMudJeansbrandintheNetherlands:jeansarerentedun2loutworn,thenreturnedandrecycledandmadeintonewproducts;consumersarethengivennewjeans.
LOCAL INITIATIVES IN CIRCULAR ECONOMYExamples of locally-based dissemination and sustainable processing
Cattle dung-powered biogas reactor, Padang (PT Swen IT)
Local recyclers, Indonesia Plastic Recyclers Association (ADUPI)
3,400 units in 243 regencies/cities in 33 provinces
400,000 tons of plastic a year are recycled from a total of 3–4
million tons of plastic consumption
CIRCULAR ECONOMY AND NDCA Zero-Waste Economy to Support Reducing Emissions
No. Sector
2010(MillionTonsofCO2e)
2030EmissionsLevels(MillionTonsofCO2e)
EmissionsReducAons
MillionTonsofCO2e %oftotalBAU
BAU CM1 CM2 CM1 CM2 CM1 CM2
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=CounterMeasure1(uncondi'onalmi2ga2onscenario)CM2=CounterMeasure2(condi'onalmi2ga2onscenario)
-29%(UNCONDITIONAL)-41%(CONDITIONAL)
INDONESIA’SNDC 2030
CIRCULAR ECONOMY AND NDCEmissions mitigation in the waste sector: in-line with the circular economy
URBANSOLIDWASTESECTOR
BAU CM1 CM2
MiAgaAonstepsintheprocessingofsolidwaste,anincraseinLFGrecoveryimplementaAonfrom2010to2030.
Nomi2ga2onsteps.LFGrecovery
reducesCH4from0.65%to10%.
LFGrecoveryreducesCH4from0.65%to10%.
IncreaseinthepercentageofwastehandledthroughcomposAngand3R(paper).
Nomi2ga2onsteps.Increaseto22%in2020and30%in
2030.
Increaseto22%in2020and30%in
2030.
IncreaseintheuAlizaAonofwastethroughwaste-firedpowerplants/RDF(RefuseDerivedFuel).
Nomi2ga2onsteps.
- Upto3%oftotalwastein2020andincreasingto5%in2030.
- Developmentofwaste-firedpowerplantsin7ci2es
- Upto3%oftotalwastein2020andincreasingto5%in2030.
- Developmentofwaste-firedpowerplantsin12ci2es(addi2onal)
CIRCULAR ECONOMY AND NDCEmissions mitigation in the power sector: in-line with the circular economy
ENERGYSECTOR
BAU CM1 CM2
UAlizaAonofrenewables(solar,wind,andbiomass/waste)andefficienttechnologiesinpowergeneratorsinaccordancewithGeneralElectrificaAonPlansfor2016–2025.
Nousageofrenewablesand
efficienttechnologies.
Increaseinrenewablesusageandefficient
technologies.
Increaseinrenewablesusage.
100%penggan2anminyaktanahmenjadi
bahanbakargas.
Moreextensiveusageofultrasupercri2caltechnology(44%
efficiency)incoal-firedpowerplants.
Increaseinuseofsuperefficientenergyequipment(bestavailabletechnology,BAT)inindustry,commerce,andresidencesin2030.
0%penetra2on. 10%penetra2on. 20%penetra2on.
IncreaseinuseofbiofuelinthetransportaAonsectorin2030.
Noincrease.Increaseupto5%oftotalenergyfromthetransporta2onsector.
Increaseupto10%oftotalenergyfromthetransporta2onsector.
Inanidealcirculareconomymodel,allacAvityispoweredby
cleanenergy.
IPPUSECTOR
BAU CM1 CM2
Managementofindustrialprocessesandproductuse(IPPU)inlargeindustries.
Nomi2ga2oninindustrialprocesses.
Reducing“clinkertocementra2o”inthecementindustry(blendedcement)from80%in
2010to75%in2030.
Increasingamountofcementcompaniesthatreducetheir
“clinkertocementra2o”(blendedcement)from80%in2010to75%in2030.
Ammoniaindustry:increaseinefficiencythroughop2miza2onofnaturalgasusage(feedstock)andCO2recoveryinPrimary
Reformers.
Ammoniaindustry:increaseinefficiencythroughop2miza2onofnaturalgasusage(feedstock)andCO2recoveryinPrimary
Reformers.
Othersteps:- Steelindustrytoimplement:
CO2recovery,processimprovementinsmelters,u2liza2onofscrapiron
- RemainderofIPPUclaims(PFCs)fromCDMaluminumsmelters.
Othersteps:- Steelindustrytoimplement:
CO2recovery,processimprovementinsmelters,u2liza2onofscrapiron
- RemainderofIPPUclaims(PFCs)fromCDMaluminumsmelters.
CIRCULAR ECONOMY AND NDCEmissions mitigation in the IPPU sector: in-line with the circular economy
POSITIVE MARKET POTENTIAL
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)
Environmental technologies for waste and recycling
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