In This Edition : Preparation of GHG Emission on Profiling Activity for Energy-Intensive

Transcription

1 In This Edition : Preparation of GHG Emission on Profiling Activity for Energy-Intensive Training on Calculation of GHG Emission for Industry Sector Training on Calculation of GHG Emission for Power Sector Review Baseline Site Visit to Power Plant Monitoring Reporting and Verification (MRV) Emission Development FGD Market-Based Instrumen (MBI) Working Group and Kick-Off of Optional Research on MBI PMR Project Management Unit (PMU) Menara Ravindo 12 fl., Jl. Kebon Sirih Raya No. 75 Center of Jakarta T F

2 Training on Calculation and Inventory of GHG Emissions in Industry Sector Emissions in the food and beverage, under coordination Directorate of Beverages, Tobacco and Fresheners Industry, Directorate of Food, Marine and Fisheries Industry. Implementation of the event held in Bogor, November 2017 attended by 15 industries beverage and tobacco, and 15 food industries November - Desember PMR Indonesia in parallel has conducted training and calculation of GHG emission inventory to industry players cooperating with Coordinating Ministry of Economic Affairs, and Ministry of Industry from October to December This training is one of the activities related to the preparation of GHG emission profile and aims to increasing the capacity of human resources in eight energy-intensive industry sub-sectors (chemicals, textiles, ceramics and glass, food and beverages, fertilizers, cement, steel, pulp and paper). The training focuses on Greenhouse Gas (GHG) emission calculation methods so that actors in related industrial sectors have the ability to calculate their GHG emission levels. From some presentation, it is envisaged that the sources of GHG emissions generated by these industries are derived from energy emissions and emissions from production processes and product usage (IPPU) and waste. With this training is expected to provide benefits to the industry in identifying the needs of technology with low cost, bringing the industry closer to the Green Industry Standards Program (SIH) and PROPER. In addition, the training is intended to receive input from industry players and associations for policy makers to be undertaken by the Government. Emissions in Textile sub sector, under coordination Directorate of Chemical, Textile and Various Industry. Implementation of the event held in Bandung, 6-7 Desember 2017, attended by the participant from textile industries Various things are presented in this training, starting from the method and procedure of calculating GHG Emission Inventory, the legal rules that become the basis for the implementation of GHG investments, and the implementation of National Industrial Information System(SIINAS). GHG emission calculation contains basic introduction; stipulation of the agreement on the use of Tier method and level for GHG emission calculation; as well as the stipulation of major emission source categories from industrial activities. Industry players are expected to be guided by the Presidential Regulation no 71 of 2011 related to GHG inventory. GHG inventory is an activity to obtain data and information regularly related to the level, status and trends of GHG emission and / or uptake. In addition, this activity aims to provide information on GHG emission reduction achievements in order to achieve Nationally Determined Contribution (NDC) objectives. Emissions in ceramic and glass sub sector, under coordination Directorate of Non-Metal Material Industry. Implementation of the event hold in Bogor, Desember 2017 attended by 40 participant from ceramic and glass industries The preparation of GHG emission profiles is important to know the main sources of GHG emissions. These data will be expected to provide benefits in the preparation of GHG Emission Mitigation Action Plan in accordance with the sources. In relation to the national GHG inventory reporting, the Directorate General of Climate Change, Ministry of Environment and Forestry coordinates with the Research Center and Development of Green Industry and Environment (Litbang. PPIHLH) of the Ministry of Industry to carry out the GHG inventory in the industry sector. The industry as one of the stakeholders in controlling GHG emissions (besides reducing GHG emissions) is expected to remain competitive and compete in the international market. To support this, the government built the National Industrial Information System (SIINAS) as a means of liaison between industry and government through e-reporting GHG. SIINAS is a platform of existing systems so companies will only report data through one portal / platform only. SIINAS account registration can be done in 26 units of public service Ministry of Industry both in Central and Regional. This application will be launched in 2018, to collect and integrate national industry data primarily related to emissions information from the industry sector. 1

3 The preparation of the GHG emission profile in the industrial sector becomes important to support the calculation of the achievement of national GHG emission reduction that has been submitted to UNFCCC. The prepared GHG emission profile report will also identify the emission reduction cost curve. Emissions in chemical sub sector, under coordination Directorate of Upstream Chemical Industry. Implementation of the event hold in Bogor, November 2017, attended by participant from chemical industries Through this training also, the industry can evaluate energy efficiency in its production process. Participants were introduced to the application of GHG emission accounting system issued by the International Panel of Climate Change (IPCC) 2006 with the level of Tier 1 accuracy. The data used refers to production data and / or consumption of raw materials in industry with IPCC standard emission factor. Furthermore, volumetric units of fuels such as liters, kg, or tons need to be converted to their heating value of fuel (referred to IPCC 2006) so as to have uniform units of Tera Joule (TJ) units. However, if the fuel is already in British Thermal Unit (BTU) unit then stay multiplied by the conversion factor. For the use of certain types of fuels, in calculating emissions required emission factors per type of gases (CO2, CH4 and N2O) based on the fuel used. Training was conducted using metacard method. At this meeting the participants were divided into several groups and trained to calculate GHG emissions with national data samples which were then continued by calculating emissions using the data of each industry. Calculations are performed using a manual worksheet and followed by calculations using the IPCC Software application. Emissions in chemical sub sector, under coordination Directorate of Upstream Chemical Industry. Implementation of the event hold in Cilegon, One of the participants from PT. Wilmar, Aris put to the front that this training is very useful to provide knowledge related to the calculation of GHG emissions resulting from the production process in place of work. Aris also conveyed his company's readiness and waited for further directives related to company's obligations to inventory and report on GHG emissions. November 2017 attended by participant from chemical industries Date of Implementation Training Activities Food and Baverrage sub sector : Bogor, November 2017 Textile sub sector : Bandung, 6 7 Desember 2017 Ceramic and Glass sub sector : Bogor, Desember 2017 Chemical sub sector : Bogor, November 2017 Cilegon, November 2017 Surabaya, Desember 2017 Emissions in chemical sub sector, under coordination Directorate of Upstream Chemical Industry. Implementation of the event hold in Surabaya, Desember 2017, attended by participant from chemical sub sector. 2

4 Development of GHG Emission MRV Guidelines in Power Generation and Industrial Sector November - Desember 2017, Indonesia's Partnership for Market Readiness (PMR), together with the Ministry of Energy and Mineral Resources (MEMR), Ministry of Industry through the Power Working Group and Industry Working Group, conducted Focus Group Discussion (FGD) activities for the development of GHG emission calculating-reporting and verification (MRV) guidance in the power generation sector and industry, this activity held for two days, 3-4 November 2017, in Bandung. Discussion on emission MRV for Industry and Power sector, Bandung, November 2017 By involving relevant ministries, as well as other stakeholders including representatives of companies and associations of 8 industry sub-sectors and representatives of the power sector, at the two-day meeting, the participants discussed, exchanged information and provided updates related to policies and systems reporting GHG emissions in Indonesia. The FGD also aims to identify the principles of GHG emission reporting systems and key elements in the general guidelines of GHG emission reporting systems, particularly in the electricity and industries sectors. In his direction, Mr. Dida Gardera, Deputy Assistant for Environmental Conservation, Coordinating Ministry for Economic Affairs, said that the Monitoring Reporting Verification (MRV) System to be developed aims to calculate, record, report (later verifiable) data on the amount of GHG emitted in the period certain. The built MRV system is expected to be implemented at both institutional and facility levels. Discussion on emission MRV for fertilizer sub sector, Bogor, November 2017 Mr. Lintong Hutahean, Director of the Non-Metal Material Industry, Ministry of Industry, also stated at the opening that GHG emission reporting is needed to obtain valid data that can be used to design and implement climate change mitigation policies. He also emphasized the importance of integration between systems that can be pursued by developing data platforms that are general / compatible and accessible to various institutions according to their needs. He added that the key to successful implementation of GHG emission reduction activities is how to ensure the validity of existing data in the targeted sectors. For the industry sector, the baseline calculation is still very diverse to be a major challenge, and for that cooperation and coordination among stakeholders is essential, in order to build a reliable and credible integrated system. In the FGD identified that there are currently some related GHG emission reporting systems, among others that are built by KLHK (SIGN SMART, SIMPEL, PROPER), by the Ministry of Industry (SII-Nas) and by the MEMR (POME and electricity emission factor). Several generating and industry companies have reported data related to GHG emissions to some existing MRV systems. In the framework of further discussions, all participants agreed that an understanding of the operationalization of various emission reporting systems in Indonesia needs to be provided. This is considered important so that all parties can provide input related to the MRV system being built or implemented, so that the MRV system can be implemented properly in accordance with the objectives. Participants also expect a follow-up plan to formulate or implement a roadmap for the development of a GHG emission reporting system in the electricity generation and energy generation sector. Discussion on emission MRV for cement sub sector, Bogor, Desember

5 Industry Sector As a follow up of the work meeting on the development of Monitoring, Reporting and Verification (MRV) which was discussed in November - December 2017, the follow-up meeting to get the final agreement related to GHG emission baseline calculation, and draft outline discussion for MRV guidelines will also be implemented year Emission MRV Guideline Development for Power Sector Jakarta, 22 November 2017 The MRV pilot will be focused on 2018 by conducting site visit to several industries that are ready to carry out MRV activities. This trial is planned to be implemented for the industrial sub-sector that is considered ready, namely; cement industry sector, fertilizer and pulp and paper. Accompanying the drafting of the MRV guidelines will also be carried out GHG emission calculation training activities for several new industries in the cement industry sub sector as well as the pulp and paper industry. Power Sector The need to develop MRV guidance in the power generation sector was identified during the power plant working group meeting held in August The meeting was attended by representatives from the Ministry of Energy and Mineral Resources, Coordinating Ministry for Economic Affairs, PT. PLN, Private Power Companies Association (APLSI), and other relevant stakeholders in August Emission MRV Meeting for Power Sector Batam, 03 Agustus 2017 At that time, Mr. Munir Ahmad (Director of Electrical and Environmental Engineering Energy and Mineral Resources) said that the meeting is intended to enrich the knowledge of all working group members related to the GHG emission sector profile in the field of power generation, and methodology in the MRV system and GHG stocks for generating plants electric power. In conclusion at the meeting, the participants agreed on the drafting of MRV guidelines, which will become a reference for stakeholders to calculate and report GHG emissions in their plant to Ministry of Energy and Mineral Resources (MEMR). In the Focus Group Discussion of MRV guidelines developed on 3-4 November 2017 in Bandung, the Power Working Group agreed to establish a small team for the preparation of MRV guidelines in the power generation sector. This has been followed up with a small team meeting on the preparation of the GHG emission inventory guidelines for the power plant sector which was implemented on November 22, 2017 in Jakarta and December 21, 2017 in Serpong. The developed guidelines will cover the scope of GHG inventories, methods and calculations, reporting and control formats and quality assurance. Reporting will be done through the online system being developed, the company will become quality control (QC) data and DG. Electricity-MEMR that will validate the final data provided by the company (QA). Further validated data is forwarded to Data and Information Centre, MEMR. Date of activities of MRV Discussion for Power and Industry Sectors MRV Discussion for Power and Industry Sectors : MRV Discussion for Fertilizer sub sector : Discussion of MRV Emission Development Guidelines for Fertilizer sub sector : MRV Discussion for Cement sub sector : MRV Discussion for Power sector : Discussion of MRV Emission Development Guidelines for Power sector : Bandung, November 2017 Bogor, November 2017 Palembang, Januari 2017 Bogor, Desember 2017 Batam, 03 Agustus 2017 Jakarta, 22 November

6 Training on Calculation and Inventory of GHG Emissions in Power Sector November - Desember 2017, In line with the calculation and inventory training activities of GHG emissions in the industry sector, Indonesia Partnership for Market Readiness (PMR) also conducts training activities for the power sector in cooperation with the Directorate General of Electricity-Ministry of Energy and Mineral Resources of the Republic of Indonesia. Two training sessions were held in November and December 2017 in Surabaya and Bogor. The meeting was opened by Mr. Benhur L. Tobing as the Head of Sub Directorate of Environmental Protection and Electricity. He convey that the calculation of electricity emission factor is one of the supporting activities of National Action Plan for Greenhouse Gas Emission Reduction which has been arranged in Presidential Decree 61 Year 2011 on National Action Plan for Greenhouse Gas Emission Reduction. Under the Paris Agreement, the electricity emission factor will still play an important role in supporting efforts to reduce GHG emissions in Indonesia. The Directorate General of Electricity has developed GHG emission factor in 48 on-grid interconnection systems, baseline GHG emission factors from diesel power plants throughout Indonesia, as well as GHG emission factors after power losses to the on- grid). The calculation and updating of the emission factor value shall be done by the Directorate General of Electricity every year. He also expects each generating unit to calculate GHG emissions and report them to the Directorate General of Electricity. Emissions in power sector, Bogor, November 2017 GHG emission calculation training activity refers to IPCC 2006, where the data used for GHG emission calculation is divided into two types, which is fuel consumption data used by combustion unit and also energy consumption data which is used to support the operation of the plant (except fuel consumption for fleet and operational cars). Oil consumption data can also be included as consumption data and calculated as IPPU and fuel use to light the biomass generator (which all these time has been calculated as zero). In reporting on GHG inventory results, the three major GHGs (CO2, CH4, and N2O) are required to be reported in full. The generating unit is required to report activity data potentially causing CO2 emissions. Volumetric units of fuels such as liters, kilograms or tons need to be converted to their heating value of fuel (referred to IPCC 2006) so as to have uniform units of Tera Joule (TJ) units. But if the fuel is already in British Thermal Unit (BTU) unit then just need to multiplied by the conversion factor. For the use of certain types of fuels, to calculate the emissions it required emission factor per type of gas (CO2, CH4 and N2O) based on the fuel used. For the power plant sector, Ex-Post emission data is used, where the data obtained is the previous year's monitoring data. Emissions in power sector, Surabaya, Desember 2017 At the end of this activity is expected to form an agreement on the method of calculating and the results of GHG emissions electricity supply system inventories in 2016, the increased capacity of participants related to the calculation of GHG emission inventory and GHG emission reduction mitigation actions in the power sector. Date of implementation training activities Bogor : Surabaya : November Desember

7 Preparation of Profile and Baseline GHG Emission in Industry Sector Baseline review and emission MRV discussion on cement sub sector, under coordination Directorate of Non-Metal Material Industry. Implementation of the event hold in Bogor, Desember 2017 attended by participant from cement industries November-Desember 2017, The Ministry of Industry in cooperation with the Coordinating Ministry for Economic Affairs and supported by the Partnership for Market Readiness (PMR) conducted a study on profile development and baseline GHG emissions for eight energy-intensive industrial sub-sectors (Cement, Fertilizer, Pulp and Paper, Food and Beverage, Textile, Steel, Petrochemicals, as well as Ceramics and Glass) that has been started since October 2017 and will run until June Director of Non-Metal Material Industry, Mr. Lintong S. Hutahean expressed his appreciation for the industry's willingness to review GHG emissions inventory in the cement industry. Mr. Lintong also said that the purpose of this activity is to ensure and also update the data in order to prepare the industry for MRV activities. This meeting is expected to provide input on what can be developed especially regarding the development of market-based instruments (MBI) for industries in Indonesia. The results of this study will serve as the basis for the implementation of MRV activities, where the MRV pilot project will be piloted in ready-made industries such as industry, fertilizer, cement, pulp and paper, as well as preparing a marketable picture for industries in Indonesia. Baseline review and emission MRV discussion on fertilizer sub sector, under coordination Directorate of Upstream Chemical Industry. Implementation of the event hold in Bogor, November 2017 attended by participant from fertilizer industries Mr. Dida Gardera as Deputy Assistant of Environmental Conservation, Coordinating Ministry of Economic Affairs, also added that some industries have been more advanced in terms of the implementation of GHG emissions inventory activities such as Cement, Fertilizer, Pulp and Paper industries, so it is expected that the readiness can be used as a learning material for industry others. On the next occasion, Mr. Hermawan, Center for Data and Information (PUSDATIN), and Ministry of Industry explained about the national industrial information system (SIINAS), especially related to GHG emissions which currently has integrated the Greenhouse Gas Monitoring Information System (SIM-GRK). SIINAS is aimed at providing accurate and complete data and information of the industry in order to facilitate the industry in the process of delivering report data to the government based on Law No.3 / 2014 on industry and its derivatives of PP 2/2017 on industrial facilities and infrastructure as the foundation for the establishment of SIINAS (regulation of industry minister on management). Expert Team-Ms. Lusy Widowati, in her presentation convey the purpose of baseline review activity. The purpose of the activity is 1) to review the calculation of GHG emission of cement, fertilizer, pupl and paper industry; 2) a baseline review of GHG emissions in the cement, fertilizer, pulp and paper industry by including the calculation until 2016; 3) and validation of GHG emission achievements in 2016 as a basis for preparation of GHG emission profile. This MRV activity in its development will become mandatory for the industry, so it is expected the industry do the reporting starting now. 6

8 Field Visit to PLTU Java Power, PT. Power Energy and PT. Indonesia Power Desember 2017, The Partnership for Market Readiness (PMR Indonesia) team together with the power generation working group conducted a series of field trips to several generating units. The units visited were the Suralaya power plant (Indonesia Power-unit 1-4) and Paiton power plant (Java Power-unit 5,6 and Paiton Energy-units 7, 8) in December The visit was conducted in the framework of the study on the preparation of the GHG emission profile and the identification of GHG emission reduction action for the power generation sector. The field visit, has provided an overview of the mitigation efforts of emission reductions that have been done, as well as other potential mitigation actions that may be implemented by the generating unit. PLTU Jawa Power One of the power plant units is Java Power delivering exposure to air pollution reduction, 1) using Low NOx burner, 2) installing electrostatic precipitator (ESP); 3) installing fluid gas desulphurization (FGD); 4) installing CEMS (continuous emission monitoring system), 5) install AQMS (air quality monitoring system). In relation to energy conservation programs, Paiton 7 and 8 units have implemented the following; 1) Optimization of compressor, 2) FGD aeration blower optimization, 3) optimize chlorination plan, 4) FGD maintenance through periodic cleaning every 2 years, 5) FGD absorber replacement. While PT. Paiton Energy, said that the company has made several efforts to mitigate GHG emission reduction measures, some of which include energy conservation with the efforts undertaken; 1) optimizing operational air compressor, 2) optimizing FGD Aeration Blower operations; 3) optimization of chorination Plant operations; 4) Fluid Gas Desulphurization (FGD) cleaning online; 5) periodic maintenance of the steam power plant every 2 years; 6) replacement of FGD absorber motor 3A with a more efficient motor. PLTU Paiton Energy The energy efficiency activities that have been carried out to improve the performance and generating capacity of the Suralaya power plant are the rehabilitation of turbine-generators through uprating steam turbines. Turbine uprating activities at Suralaya power plant are conducted on units 1 and 2 that can increase production capacity in each unit from 400 MW to 420 MW. Turbine uprating process is done by modifying the turbine by widening the turbine angle, so that the turbine spin by the steam discharge works optimally. This activity resulted in the largest energy savings from other energy conservation activities that have been done. However, the high value of investment for this activity becomes the main barrier in the implementation of activities. From reports of existing air pollution reduction activities, other activities that contribute significantly to CO2 emissions reductions are the utilization of exhaust gases through the development of microalgae as alternative fuels and emissions reducers that can reduce emissions by 201,864 tco2 / year. PT. Indonesia Power UBP Suralaya assisted by McKinsey has made efforts to increase the efficiency of the generation unit through the 5E (Enhancing and Embedding Energy Efficiency Excellent) program. Through this program, the performance of the generation unit is monitored periodically and evaluated for subsequent performance improvements. PT. Indonesia Power UBP Suralaya has also conducted ISO energy management program. PLTU Indonesia Power It is mutually agreed upon from these visits that further meetings are needed to identify potential GHG emission reductions that can be adopted by the power generation sector. 7

9 FGD Market Based Instrument Working Group and Kick-Off Study of Market-Based Instrument Option 15 Desember 2017, With the appointment of Deloitte Tohmatsu as consultant to the MBI study at the end of November 2017, as well as the synergy efforts of stakeholders regarding the implementation of policy-based mitigation climate change policy review, PMR Indonesia together with the Coordinating Ministry for Economic Affairs held a preliminary meeting involving the working group of market-based instruments and consultant. "The meeting was held with three main objectives", as stated by Director of Environment, from Indonesian National Development Planning Agency (BAPPENAS), Mr Medrilzam in its opening. He said that the three objectives are 1) to socialize the commencement of study on policy options for market-based climate change mitigation, which will be undertaken by Deloitte Tohmatsu as the executor of the study; 2) to discuss the action plan of the study implementer; and 3) Reporting outcomes of the Working Group on Market Based Instrument Working Group. He added that market-based instruments (MBI) have actually been discussed from a long time ago. "Even Indonesia has followed a scheme called Clean Development Mechanism (CDM) under the Kyoto Protocol" he added. It is worth noting that at present, other countries have applied MBI on a domestic / national scale in various forms such as emissions trading, offsets and carbon taxes. Learning from other countries, Indonesia needs to explore what innovative instruments can be developed to support climate change mitigation and in accordance with domestic conditions in Indonesia, both governmental and marketbased. "Because if Indonesia sees Indonesia's target of emission reduction of 29% and 41%, it will certainly require innovation in raising private funding to support such mitigation efforts and MBI is one of its options", he stressed. Furthermore, questions arise about Indonesia's own readiness to implement MBI. In response, as a strategic step, a study is needed to find out the appropriate instrument options for climate change policy in Indonesia. "I myself hope that this study will be able to produce comprehensive information on MBI options in the world, MBI options that may be applied in Indonesia and its socio-economic impacts, as well as a roadmap for the development of selected MBI scenarios," said the Director of the Environment from Indonesian National Development Planning Agency (BAPPENAS), Mr Medrilzam. On the same occasion, Head of Sub Division of Funding Resources, Directorate of Mobilization of Sectoral and Regional Resources from Ministry of Environment and Forestry (KLHK), Ibu Endah Tri Kurniawaty, also explained Climate Change Funding Instrument (Follow up of PP No. 46 Year 2017). Ibu Endah explained that Indonesia, through NDC, has set a 29% emission reduction commitment with domestic efforts and 41% with international support. "With regard to the implementation of the NDC, funding support from the state budget, international support or non-parties stakeholders," he stressed. With regard to funding sources, it is further conveyed that the Government of Indonesia has planned the development of the Environmental Economic Instrument (IELH) as governed by Government Regulation no. 46 of 2017 and contains a mandate for the establishment of a Public Service Agency (BLU) for environmental funds. In relation to the point of establishing the Public Service Agency (BLU) institution, in this case the Agency for Environmental Fund Management (BPDLH), there are three windows of economic instruments that are the duties and functions, namely the fund of environmental recovery guarantee, damage / pollution prevention fund, and trust fund for conservation. 8

10 "For example, funding for REDD + projects consists of: REDD + investment plan, REDD + Candidation, The Environmental Fund Management Agency/Badan Pengelola Dana Lingkungan Hidup (BPDLH) business strategy, BPDLH governance, BPDLH organizational structure and environmental finance regulation" continued Ibu Endah. A review of policy options for market-based mitigation of climate change mitigation by PMR Indonesia will support the formulation of innovative economic instruments to control GHG emissions in Indonesia. This study itself is planned to be held for nine months with the aim of providing input for decision-making processes related to MBI implementation to improve national mitigation actions. Deloitte Tohmatsu as executive consultant of this study, conveyed on the work plan and strategy in conducting the study. At the end of the event, Partnership for Market Readiness (PMR) declared its support to build awareness and willingness related to climate change mitigation and MBI implementation, and one of the forms is the review of MBI options for climate change mitigation in Indonesia. Various policies to reduce GHG emissions have been taken by the Government, such as what has been done by the Ministry of Industry through Green Industry Standard which is basically also a benchmark of GHG emissions for industries in Indonesia, and MBI can be designed in such a way to assist the implementation of those policies. The meeting was attended by the Working Group on Market Based Instruments consisting of the Directorate General of Climate Change Control- Ministry of Environment and Forestry (Directorate General of Climate Change Control - Ministry of Environment and Forestry), Center for Strategic Policy- Ministry of Environment and Forestry (PUSJAKSTRA-KLHK), Center for Social Research and Development Economics, Policy and Climate Change- Ministry of Environment and Forestry, Environment Directorate- Indonesian National Development Planning Agency (BAPPENAS), Fiscal Policy Office (BKF- Ministry of Finance), Directorate General of New Renewable Energy and Energy Conservation- Ministry of Energy and Mineral Resources (DGR-ESDM), and Association of Indonesian Carbon Managers) with coordinator Director of Mobilization of Sectoral and Regional Resources, Ministry of Environment and Forestry. Partners 9