NEWSLETTER PMR INDONES IA VOL  2   |  OKTOBER 2017

PMR Indonesia Participation at the 6th Indo EBTKE ConEX 2017

Panel Discussion : Implementation of Market-Based Instruments to Scaling up Mitigation Action

Focus Group Discussion :  Development of MRV for GHG Emission for the Power Generation Sector 

Contact us :  PMR Project Management Unit (PMU) Wisma BSG  Jl. Abdul Muis No. 40 , 3A fl.  Jakarta 10160 P. +62 21 38900994 F. +62 21 21201769 www.pmr-indonesia.org

On July 18-20, 2017 two meetings were held to discuss : 1) Preparation of

development of GHG emission profile and the development of MRV system

for Power and Industy Sectors. 2) The work plan for GHG emission profile

development and the MRV system development.

Preliminary Discussion on the Development of GHG Emission Profile and MRV System for Industry Sector 

In This Edition : 

Preliminary Discussion on the Development of GHG Emission Profile and MRV System for Industry Sector 

September 18, 2017 - Working group technical meetings have been con-

ducted since April 2017 by inviting relevant sectoral directorates (from the

Ministry of Industry) as well as representatives from industry associations.

It was agreed that the scope of GHG

emissions profiling activities, emissions

baseline and abatement cost curve

study would cover eight industry sub-

sectors, namely: cement, fertilizer,

pulp and paper, food and beverage,

textile, steel , petrochemicals, and

ceramics, by looking at all sources of

industry GHG emissions (Energy, IPPU

and waste). The eight industry sub-

sectors will use the same (starting

point) approach.

Baseline development will be

conducted in each sub-sector for 2010-

2016 data, using 2010 as the base

year. Due to the large scale of target

population and complexity of industry

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In his opening remarks, Mr. Dida Gardera from the Coordinating

Ministry of Economy Affairs stated the importance of the

development of sectoral GHG emission profile and MRV system in

the development of strategies to scalling-up Indonesia's

mitigation actions. Mr. Lintong Sopandi Hutahaean from Ministry

of Industry strongly supports this initiatives and also express his

apreciations to industry players and associations who have

participated in meeting and will be actively involved in the

development of GHG emission profile and MRV system for

industry sectors.

This meeting also presents several experts as resource

persons, namely: Yusman Arullah (Pupuk Sriwijaya - PUSRI),

Retno Gumilang Dewi (Bandung Institute of Technology),

Sunaryo (Textile Industry Association), Widiatmini Sih Winanti

(BPPT), Ery Susanto Indrawan and Lusy Widowati (Indonesian

Cement Association - ASI), Winda Retna Sari (National Expert

- PMR), Edzard Ruehe (Industry Expert).

Agreement on the workplan and understanding on the scope

of works of the GHG emission profiling study has been

achieved in this two days meeting. The next meeting was

scheduled to be held in parallel with the kick-off meeting in

early November 2017.

sub-sectors to be engaged within the study, and the fact that the study will only be conducted in limited period

of time (8 months), a special preparation meetings is required. The preparation meetings was conducted on 18-

20 September 2017, not only as preparation for the acitivity but also to ensure the commitment from each

stakeholders who will be involved in the study. The meeting were participated by all sectoral directorates from

the Ministry of Industry, experts and representative from Industry Associations.

Panel Discussion : Implementation of Market-Based Instruments to Scaling up Mitigation Action

September 14, 2017 - The market-

based instrument for enhancing

climate change mitigation efforts

focuses on one thing, ie, providing

economic value for each emission

reduction unit aka carbon pricing.

This approach has been made in a

climate change agreement before the

Paris Agreement of the Kyoto

Protocol.

In the Kyoto Protocol, developed countries can achieve their emission reduction targets by undertaking emission

reduction activities in developing countries through the Clean Development Mechanism (CDM).

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This experience proves that market-based instruments work well to provide incentives for emission reduction

activities. For Indonesia, the CDM era also opens the eyes that true emission reduction efforts can be

economically feasible, even when incentives from CDM are no longer available. However, the Paris Agreement is

an agreement whereby developing countries are also required to contribute to global emission reductions so that

market-based instruments will be more emphasized to facilitate the achievement of domestic emission reduction

targets rather than selling their emissions reductions abroad. Some developing countries such as China, Chile,

Mexico, and Thailand are developing these domestic instruments to support emissions reduction policies in their

respective countries.

Compared to the above countries, the understanding of market-based instruments (MBI) in Indonesia is

relatively lower and limited to CDM-like MBI. Therefore, in-order to properly consider the implementation of

policy options for market-based climate change mitigation, stakeholders' holistic understanding of MBI should be

improved. For that purpose, PMR Indonesia was participated in the 6th Indonesia EBTKE ConEx 2017 and held a

Panel discussion on MBI Implementation in Promoting the National Mitigation Actions – on September 14, 2017.

In the period 2008-2012, Indonesia has had 147 emission reduction activities listed in the Clean Development

Mechanism. These projects have accumulated more than 21 million-ton-of-carbon dioxide emissions reductions

and are estimated to bring in an incremental cash flow of US $ 50 million in sales of carbon credits overseas.

The panel discussion was attended by PMR working group members,

representatives from relevant ministries/agencies, private sectors, and

industry associations. It was expected that from this discussion could be

achieved a common understanding of the role of market-based

instruments in promoting climate change mitigation, and understanding of

some policies that can be supported by the application of market-based

instruments.

The discussion presented panel from several organizations: Mr. Dida

Gardera (Coordinating Ministry for Economic Affairs), Mr. Lintong

Hutahaean (Ministry of Industry), Mr. Achmad Gunawan (Ministry of

Environment and Forestry), Mr. Benhur L. Tobing (Ministry of Energy and

Mineral Resources).

The first panel speaker, Mr. Dida Gardera stated that in efforts to

reduce GHG emissions, the capacity of the government is limited,

hence private sectors support and involvement is expected,

especially in the implementation of the market mechanism. He

stated that Indonesia has had experience in developing CDM

since 2005. Learning from the experience of CDM, the market-

based instrument can become a policy tool to support climate

change mitigation. Through the PMR program, Indonesia is

expected to gain more support in developing its capacity in the

implementation of market-based instruments.

The next speaker, Mr. Lintong Hutahaean presented on the Green

Industry Standard as a Tool to Improve Clean Energy Use. In his

presentation, Mr. Lintong explained on how the green industry

standard could support the utilization of clean energy in

Indonesia. In line with Government Regulation No. 14 of 2015 on

‘General Plan of National Industrial Development’, green industry

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has become a focus in industrial development in Indonesia. The

development of this program will encourage the industry to improve

efficiency and relate to the competitiveness of the industry itself.

Mr. Benhur L. Tobing from the Ministry of Energy and Mineral

Resources presented and explained on the Clean Technology and

Energy Mix Strategy for GHG Emission Reduction in Power Sector.

As part of its national policy, Government of Indonesia has set a

combination of programs that is expected to meet the national

electricity demand and support the reduction of GHG emissions

(especially from the power generation sector).

Paris Agreement (PA) through Law No. 16/2016, Indonesia is obliged to reduce its national GHG emissions. Through

the NDC, Indonesia has set a 29% emission reduction commitment with domestic efforts and 41% if there is

international support. To support the implementation of the NDC, funding support may be needed from various

sources not just the government budget (APBN). Other support from domestic or international, from parties or non-

parties stakeholders need to be coordinated and alligned with national priorities – this including the funding for

climate change mitigation action from national/domestic market.

PMR Indonesia Participation at the 6th Indo EBTKE ConEX 2017 September 13, 2017 - Both power generation and industry are

among major energy consumers. This issue becomes more

important after the submission of Indonesia Intended Nationally

Determined Contribution (INDC) for climate change mitigation

to UNFCCC where the country stated its intention

to unconditionally reduce GHG emissions by 29% below BAU

level in 2030 using, among others, energy conservation and

promotion of clean and renewable energy resources.

Not all decision makers share a common understanding of the

purpose of climate change mitigation actions being

implemented. Providing working examples in which economic

and socio-political interests are able to harmonize would

encourage the policy makers to support climate change

mitigation actions. Hence, better understanding of climate

change issues for greater support for mitigation actions is

needed.

Meanwhile Mr. Achmad Gunawan, from Ministry of Environment and

Forestry, presented on Means of Implementation and NDC

Implementation. He stated that, since Indonesia has ratified the

Extensive social promotion in this regard is necessary. For market-based instruments (MBI), the understanding

is relatively lower and limited. Therefore, in-order to properly consider the implementation of policy options for

market-based climate change mitigation, stakeholders; holistic understanding of MBI should be improved. For

that purpose, PMR Indonesia jointly with two other UNDP Programs (Market Transformation through Design

and Implementation of Appropriate Mitigation Actions in the Energy Sector - MTR3 and Strategic Planning and

Action to strengthen the Resilience of Communities climate - SPARC) was participated in the 6th Indonesia

EBTKE ConEx 2017 and held a Panel discussion on MBI Implementation in Promoting the National Mitigation

Actions – on September 14, 2017.

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With this year theme “Renewable Energy is a

Solution for Energy Security and Paris Agreement”

this event will show-casing a topics, issues,

products, business opportunities in Indonesia, also

showing a brand new resources scoop in renewable

energy and conservation energy.

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The 6th Indonesia EBTKE ConEx 2017 in conjunction with Bali Clean Energy Forum (BCEF) 2017, adalah kegiatan

yang terbesar untuk energi baru dan terbarukan di Indonesia, dan diresmikan oleh pemerintah Republik

Indonesia - Direktorat Jenderal EBTKE, Kementerian ESDM bersama Masyarakat Energi Terbarukan Indonesia

(METI); Acara ini dilaksanakan pada 13-15 September 2017, Program pada kegiatan tersebut terdiri dari;

conference, exhibition, training dan student visit.

Three Programs under UNDP's Environment Unit, PMR, MTRE3, and

SPARC, shared one promotion-booth. Through this booth, the three

programs were able to display, disseminate, and socialize each program

and activities. Video presentation on PMR, Carbon Market, etc. were

displayed. Posters, flyers, and brochures were displayed and distributed

to visitors.

This event attended by government, professionals,

lecturers, college students and non-government

organization nor speakers and overseas institution

related with renewable energy.

Focus Group Discussion :  Development of MRV  for GHG Emission for the Power Generation Sector 

September 6, 2017 - The MRV system for

GHG emission is central to achieving

government commitment to reduce

greenhouse gas emissions. Measurements and

monitoring are needed to identify

emission trends, determine where emission

reduction efforts should be focused, and

monitor its development. Reporting and

verification are important to ensure the

principles of openness, governance, credible

results, accountability, and ensuring that all

sources has been used effectively. The FGD

was held on 6 th September 2017, and

discussed in details on the tools and protocols

for sectoral GHG emissions calculations

and reporting for power generations. The

FGD was also became a forum of discussion

and nowledge/information exchange related

to GHG sector inventory and MRV system

used in CDM.

The technical meeting was chaired by Mr. Munir Ahmad (the Director of Electrical Engineering and Environment -

MEMR), Mr. Dida Gardera (Director for Environmental Conservation - CMEA). In his opening Mr. Munir Ahmad

stated that the electricity sub-sector has a heavy target within the NDC Indonesia, which must reduce GHG

emissions by 314 million tons of CO2 or 11% of the total 29% of nationally targeted emission reductions by 2030. It

is therefore necessary to make deep checks to determine the points the key that enables the achievement of

effective and efficient reduction of emissions. This means that mitigation efforts undertaken are able to

achieve large emission reductions at a fairly low cost. To be able to measure efforts to achieve emission

reduction targets from electricity sub sector is required a credible MRV system. There are several action options

that can be done, such as using a system that has been running in the clean development mechanism (CDM) or

refining the system currently used by MEMR(managed by Pusdatin). Meanwhile, Mr. Dida Gardera stated that

Indonesia's emission reduction target of 26% / 41% is very ambitious. The government's ability to achieve these

targets is very limited. The role of the private sector needs to be improved. Creation of market-based

instruments is one way that is considered effective to open the door of private sector involvement. Some

countries such as China, Chile, Mexico and Thailand are developing the domestic instruments to support the

emission reduction policy in their respective countries. Compared to the above countries, the

understanding of market-based instruments (MBIs) in Indonesia is relatively lower and limited to CDM-like IBP.

Therefore, in-order to properly consider the implementation of policy options for climate change mitigation that

are market-based, the stakeholders; holistic understanding of IBP should be improved.

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The technical discussion was inviting Mr. Ucok WR Siagian

(expert from Bandung Institute of Technology-ITB),

who shared knowledge and information and the role of

MRV system development of sub-sector emissions in

supporting emissions inventory in the sector energy. He

also explained about the GHG emission calculation

protocol and lesson learned on MRV implementation for

power generations in other countries. There was also Mr.

Suyono (from Data and Information Center MEMR), who

was sharing on the process of GHG sector inventory and

reporting at the MEMR, and inform all participants on the

status of Minister’s Decree on GHG energy sector

inventory. The FGD was concluded by sharing session

and lesson learned from PT. Indonesia Power,

PLTU Suralaya, and PT. Java Power on the GHG emissions

calculation and reporting. Followed by sharing sessions

from PT. Mutuagung Lestari on GHG emission verification

procedures in accordance with SNI ISO 14064-1.

Partners

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