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

Transcription

1 N E W S L E T T E R P M R I N D O N E S I A V O L 2 O K T O B E R 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 Panel Discussion : Implementation of Market-Based Instruments to Scaling up Mitigation Action PMR Indonesia Participation at the 6th Indo EBTKE ConEX 2017 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 P F September 18, Working group technical meetings have been conducted since April 2017 by inviting relevant sectoral directorates (from the Ministry of Industry) as well as representatives from industry associations. 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. It was agreed that the scope of GHG emissions profiling activities, emissions baseline and abatement cost curve study would cover eight industry subsectors, 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 subsectors will use the same (starting point) approach. Baseline development will be conducted in each sub-sector for data, using 2010 as the base year. Due to the large scale of target population and complexity of industry

2 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 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. 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 Panel Discussion : Implementation of Market-Based Instruments to Scaling up Mitigation Action September 14, 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). 2

3 In the period , 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. 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, 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 Learning from the experience of CDM, the marketbased 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 3

4 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). 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 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 nonparties 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, 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. 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,

5 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 September 2017, Program pada kegiatan tersebut terdiri dari; conference, exhibition, training dan student visit. This event attended by government, professionals, lecturers, college students and non-government organization nor speakers and overseas institution related with renewable energy. 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. 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. Focus Group Discussion : Development of MRV for GHG Emission for the Power Generation Sector September 6, 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. 5

6 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 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. 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 Partners 6