NATIONAL DEVELOPMENT PLANNING TOWARD GREEN ECONOMY; POLICY INITIATIVES

Transcription

1 NATIONAL DEVELOPMENT PLANNING TOWARD GREEN ECONOMY; POLICY INITIATIVES Presented at The National Training Session LEAD Associate Training Cohort Green Economy: Exploring Path to Vibrant Future Jakarta, 24 May 2011

2 OUTLINE 1. Overview 2. Green Economy Concept in Indonesia 3. Current Indonesia s Policy Context 4. Sustainable Development Perspective in the National Development Planning 5. Further Actions

3 1. OVERVIEW 1. Green Economy: Linkage between economic growth, social, and environmental sustainability long-term goals (environmental sound economy) 2. Development of economic activities + rationality of natural resources utilization preventing of natural resources scarcity reducing emission and environmental degradation Change of Paradigm and Behaviour

4 Definition Indonesia is of the view that Green Economy is a development paradigm that based on resources efficiency approach with strong emphasizes on : internalizing cost of natural resources depletion and environmental degradation, efforts on alleviate the poverty, creating decent jobs, and ensuring sustainable economic growth. Understanding that economy is one of the three pillars of sustainable development, green economy as a concept, ought to be valued as an integrated and holistic concept, and therefore should not be undervalue or limit into narrow objective (Delri, UNEP 11 th GC SS, Februari 2010) 4

5 Challenges Unsustain development Due largely to a narow perspective of development reducing the carrying capacity and the natural resource availability The root of the problem : Anthropocentric economic growth Implications Biodiversity threat Excessive exploitation of land and marine resources Environmental pollution and degradation Unmanaged growth of population Scarcity of water, food and energy The climate change and global warming

6 Why Green Economy? Opportunity Cost/Opportunity Lost: biodiversity or ecosystem services as basis for new businesses, tourism potential Development Benefits: Greater energy efficiency, energy security, competitiveness, new job/technology/inve stment opportunities, revenues from GHG emissions reductions. Why Green Economy? Fiscal/Budgetary Benefits: Reducing wasteful/non green spending will free up resources for priority development needs: investment, job creation, quality of life Reduced Economic Burden: Policy distortions and poor governance burden the budget and economy, impeding investment, international competitiveness and market access Co-Benefits/Quality of Life: Cleaner air, enhanced public health, reduced congestion, better waste management, lower health costs, more productive workers/families

7 New Way of Development Perspective * Widening the Consideration of Economics beyond the Classical Economists Circular Flow Source : Green Economics, Molly Scott Cato, 2009 *Internalizing Externalities in the Consumption and Production Processes*

8 2. GREEN ECONOMY CONCEPT IN INDONESIA Natural Resources and Environmental Utilization Sosio-economic growth equal to carrying capacity and environmental friendly Sustainability principal internalization in the daily activities: 1. Environmental friendly behavior 2. Environmental utilization equal with carrying capacity 3. Ecological balances consideration Minimal impact to the ecology and environment

9 Shifting Behaviour & Key Features 1. Agriculture 2. Building 3. City 4. Energy 5. Fisheries 6. Forestry 7. Manufacture 8. Tourism 9. Transportation 10. Waste 11. Water 1. Reconfiguring businesses and infrastructure to deliver better returns on natural, human and economic capital investments, 2. Reducing GHG emissions renewable energy, low carbon transport, forest management, etc; 3. Extracting and using less natural resources; 4. Creating less waste & improving waste management; 5. Reducing social disparities; and 6. Preserving or restoring the quality of the environment energy efficient buildings, clean technology, improve freshwater provision, sustainable agriculture, sustainable fisheries, etc Transition Process Green Jobs

10 Transition Process 1. Awareness and understanding 2. Assessment: a) Current condition and improvement needed (each sector) b) Baseline of each sector c) Improvement monev d) Short-term trade-off e) Insentive and disinsentive to support shifting behaviour f) Transformation from transition process to established condition 3. Application of priority (sectoral & regional) step by step need commitment and policy consistency

11 Local Governments and Cities: Essential Partners for Green Economy 1. Key focal point for delivering water, sanitation and roads 2. Improving spatial plans, local transport options 3. Assessing and addressing local environmental priorities 4. Enforcing rules, reinforcing national policy messages 5. Preparing for future challenges: Addressing climate change adaptation needs 6. Identifying and targeting vulnerable populations

12 3. CURRENT INDONESIA S POLICY CONTEXT A. Longterm Development Plan RPJP C.RAN-GRK Forest and peatland Management Agriculture management Energy efficiency, promoting Renewable energy (power and transportation) Industry Waste management B. Mid Development Plan (RPJMN) & Annual Work Plan (RKP) Mainstreaming Sustainable Development Concept Cross-Sectoral Policy on Climate Change Steps of Transition Process

13 A. Long Term National Development Planning (RPJP) Vision: Indonesia that self-confidence, onward, just and wealthy Missions : 1. Realizing a society that has high morals, ethics, culture,and civilization, based on the Pancasila 2. Realizing a nation that is competitive 3. Realizing a democratic society based on the rule of law 4. Achieving Indonesia safe, peaceful and united 5. Realizing development that is equitable and Just 6. Realizing an Indonesia that is balanced and sustainable 7. Realizing an Indonesia as an archipelago nation that is selfreliant, advanced, strong, and that is based onthe national interest 8. Realizing an Indonesia that has an important role in the international community

14 Mission No. 6 : Realizing an Indonesia that is balanced and sustainable Goals National/Sector Policy & Existing Initiative Improve the management of development maintain the balance among the utilization, sustainability, availability, and uses of natural resources and environment Government Regulation No.32/2009 Protection and Environmental Management; MoAg ISPO, sustainable agricultural development; MoPW Green Infrastructure; MoFr Sustainable Forest Management; MoE, MoHA, Bappenas SEA Increases the economic use of natural resources and the environment in a sustainable manner Gov Reg. No.03/2008 Forest & Forest Management Plan & Forest Utilization MoEv Economic Instrument,incetive system of environmental financing, Green GDP, Develop the guidance & application of economic valuation of Natural Resources & Environment & Environmental Impact; BNI & Bank Mandiri Green Banking; Bapepam-LK Green Investment Improves the management of natural resources and the environment for supporting the quality of life Bappenas ICCSR, ICCTF, RAN-GRK; MoE Implementation B3 management, waster water investment program; MoEMR Development of Renewable Energy Provides beauty and comfort of life, and increases the preservation and utilization of biodiversity as the basic asset of national development Strategic Plan of MoFr MoT Green Transportation; MoEMR Energy Efficient Equipment Labeling

15 B. National Priority on Midterm National Development Plan (RPJMN) Reformasi Birokrasi dan Tata Kelola 2 Pendidikan 3 Kesehatan 4 Penanggulangan Kemiskinan 5 Ketahanan Pangan 6 Infrastruktur 7 Iklim Investasi dan Iklim Usaha 8 Energi National Priority 9 Lingkungan Hidup dan Pengelolaan Bencana 10 Daerah Tertinggal, Terdepan, Terluar, & Pasca-konflik 11 Kebudayaan, Kreativitas dan Inovasi Teknologi Bidang Politik, Hukum dan Keamanan Bidang Perekonomian Bidang Kesejahteraan Rakyat Four Track Strategy Pro-growth Pro-job Pro-poor Pro-environment Sustainable development policy through internalization and integration 3 main pillars: economy, social and environment and Improving Carrying Capacity to support the achievement of economic growth, improvement of job opportunities and poverty reduction

16 Mainstreaming Sustainable Development Concept in the RPJMN Mainstreaming on Sustainable Development ENVIRONMENTAL ASPECT Improvement on land and water resource capacity Improvement on Air Quality SOCIAL ASPECT Preserving structure and social values Improvement on community participation ECONOMIC ASPECT Economic growth, poverty reduction and social disparities EXISTING INITIATIVES : 1. Strategic Environmental Assessment (KLHS) 2. Strategy on Poverty Reduction 3. Sustainable Forest Management 4. Sustainable Agriculture 5. Responsible and Sustainable Fisheries

17 Cross Sectoral Policy On Climate Change in the RPJMN Mitigation: Forestry, Peatland, Energy including transportation, industry, and waste management Cross sectoral policy on Climate Change Adaptation: Agriculture, Marine and fisheries, Coastal, Infrastructure, and Health Supporting: Data, Information and communication, institutional capacity, research and technologi EXISTING INITIATIVES : 1. The Indonesian Climate Change Sectoral Roadmap (ICCSR) support the GOI s development vision related to climate change for the next 20 years 2. Development of Financial Mechanism to Support Climate Change Initiatives (ICCTF) 3. Support GHG emission reduction through development of National Action Plan (RAN-GRK) Government Regulation

18 Reducing Emission : Key Issues to Achieve Green Economy 1. To sharpen the CO2 emission inventory and emission target reduction will be adjusted in To strengthen institutional capacity for anticipating the impact and achieving the target of national climate-proofing policies and regulation in To make RAN-GRK as a guidance for GHG emission reduction, for BAU or international support 4. To achieve the successful implementation of climate change mitigation and adaptation in To reduce the real risk of climate change negative impact to development in 2030 by: (1) awareness raising; (2) local society capacity building; (3) knowledge management improvement; and (4) implementation of adaptive technology. 6. To ensure that all sectors support the emission reduction, adopt the low carbon development strategy, and implement it based on sustainable development. 18

19 C. Using RAN-GRK target as a Sectoral Targets to Reduce GHG Emission Sectors Reduction Target (Gton CO2e) Forestry and Peat Land 26% 41% 0,672 1,039 Agriculture 0,008 0,011 Energy and Transportation 0,036 0,056 Industry 0,001 0,005 Waste 0,048 0,078 TOTAL 0,767 1,189

20 4. SUSTAINABLE DEVELOPMENT PERSPECTIVES IN THE NATIONAL DEVELOPMENT PLANNING Sustainable Development: is development process that principally to meet current needs without compromising the needs of future generations. To achieve sustainable development integration of 3 pillars: social, economy, and environmental aspects. Economy Growth Efficiency, Stability - Basic Needs - Equity between generations -Measurement - Internalization Social-Society Poverty, Unemployment Empowerment, institutional -Governance/Culture -Equity between generations Environment Biodiversity Pollution, preservation, etc.

21 Sustainable Development Perspectives in RPJMN Target Criteria Adopted the integrated economic, social and environmental consideration in planning and development implementation in all sectors and regions; Conserved the environmental quality with indicator: better environmental quality index in 5 (five) years ahead; Agreed, developed and applied the environmental quality index as an instrument to measure the sustainable development Integral efforts in sectoral and regional development ; Without further indication for significant funding addition; Social and society consideration; Environmental carrying capacity consideration in planning and development implementation; and Mainstream to all sectors and regional, with prioritizing to strategic actions of carrying capacity conservation and justice and sustainable social Indicator Level of land and water conservation in development activity environmental quality index Level of development society participation, marjinal/minority society participation (poor and women), society social structure, and social value that applied in society. Level of resources utilization for development

22 5. FURTHER ACTIONS 1. Continue to integrate related policy framework for promoting green economy development and identify financing needs and mechanism to mainstream the new approach. 2. Apply sustainable development approach in development planning mechanism 3. Integrate related policy framework for promoting green economy in sectoral development policy both at macro and micro level 4. Highlights from recent quantitative studies of the impact of green economy for Indonesia with emphasis on instruments (climate change related) 5. Mainstreaming green economy through extended macro economic indicator.

23 Continue. 6. Shifting strategy toward green economy? a. Low carbon track: De-carbonizing energy and manufacturing sectors. b. Ecosystem service tracks: valuing nature s environmental services c. Accelerate bio-based economic development e.g. utilizing bioresources preferably unique or endemic to Indonesia for such initiatives d. Full all resources e.g. government, research institutes and Univeristy, private company, community in bio-based economy initiatives e. Direct intervention of the government in implementing biobase economy (infrastructure for ecotourism industry, agrobiodiversity, bioprospecting and its use in pharmaceutical Industry, air and water management)

24 Thank You