REPUBLIKA.CO.ID, JAKARTA — Indonesia’s commitment on controlling global climate change is reflecting in its participation for Paris Agreement. It has been ratified into Laws Number 16/2016. Every party ratifying the Paris Agreement must submit Nationally Determined Contributions (NDC) containing their target reduce global greenhouse gas emissions until 2030.

Director General of Climate Change, Ministry of Environment and Forestry, Ruandha Agung Sugardiman, said on Friday (19/3) that Indonesia targeted to reduce greenhouse gas emissions by 29 percent independently, and 41 percent with international assistance. There are five sectors in the NDC that support the move. They are energy, waste, industrial processes and production use (IPPU), agriculture, and forestry.

Ruandha explained that the ministry had finished the updated Indonesian NDC. There are four main points in the updated NDC. First, Indonesia maintains the target for reducing greenhouse gas emissions by 29 percent to 41 percent in 2030, which is in line with the elaboration cited on Road Map NDC Mitigation.

Secondly, the updated information is based on the current condition. Ruandha exampled, the Vision and Mission of Onward Indonesia Cabinet 2019 has been listed. Third, new materials in NDC are explanation that need further details, such as implementation of adaptive elements and tools, as well as transparency frame. Lastly, new commitment on oceans; wetland, such as mangrove, coral, and others known as blue carbon; and residential area as adaptive element.

Ruandha further explained that Indonesia had prepared long term strategy until 2070 in the form of low carbon and climate resililient development as well as policy. This mandate for long-term strategies (LTS) has been listed on Paris Agreement article 4.19. It means that every party must formulate and communicate their lomg term strategies for low greenhouse gas emissions building. “The LTS actually should have been submitted before 2020, but because of Covid-19 pandemic, we will submit before COP26 in 2021,” Ruandha said.

Indonesia’s LTS contains some elements: (1) Ambition towards adaptive and mitigation efforts; (2) Mitigation effort; (3) Adaptive effort; (4) cross sectoral policy and its calculation; (5) International partnership; (6) Approach implementation; and (7) Monitoring, review, and update.

Ruandha explained, the long term strategy to reach the target of net zero emission in 2050 is how government can align goals and targets of climate change control with national, sub-national, and international development target, which includes sustainable development goals (SDGs). It is also how government can hand in hand with non-party stakeholders to innovate and strengthen community im an effort to control climate change. Ruandha said that before 2050, in 2045 to be exact or 100 years of Indonesia’s independence, the government has planned the strategy towards prosperous Indonesia. In the end, Indonesia is expected to reach net zero emission in 2070.

Ruandha mentioned that Indonesia has prepared for COP26, which will be held in Glasgow, Great Britain. There are 14 big agenda: (1) Mitigation; (2) Adaptation; (3) Transparency of Actions and Supports; (4) Climate Finance; (5) Capacity Building; (6) Technology; (7) Article; (6) of the Paris Agreement; (8) Compliance; (9) Response Measure; (10) Agriculture; (11) Gender and Climate Change; (12) Research and Systematic Observation (RSO); (13) Local Communities and Indigenous People Platform (LCIPP); dan (14) Ocean and Climate Change.

“These are the fixed agenda every year. We are in the middle of discussion to strengthen our position, especially in agenda number 14, which is ocean and climate change. We are discussing with Ministry of Marine Affairs and Fisheries so that we can entry our mitigation effort in the agenda,” he said.

Expert Staff of Industry and International Trade of Ministry of Environment and Foresty, Laksmi Dhewanthi, said the effort to control climate change from both mitigation and adaptarion need to be supportes by many instruments. One of the is financing. The effort is usually financed by several sources, mainly from state budget (APBN). Based on the report from Third National Communication (TNC) to Secretariat of UNFCCC in 2017, from 2015-2020, Indonesia needs big financing for implementing its adaptation and mitigation commitment to control climate change. The amount reached 81 billion USD.

“To reach the NDC target, State Budget allocates 34 percent from the total of climate financing, or about IDR 3.461 trillion. If we only lean on state budget, it will not be enough. So, we have some strategies developed by Ministry of Environment and Foresty and Ministry of Finance. It will be the focal point in financing the effort to control climate change,” Laksmi said. 

Laksmi explained further that there are four strategies to tackle the problem in financing. First is fiscal policy in the form of income, expenditure, and financing. Second strategy is to develop inovative financing instruments, such as Result-Base Payment (RBP), Global and Retail Green Sukuk to finance green project in State Budget, and also to involve private businesses using Government Cooperation with Business Entity (KPBU) scheme to finance infrastructure project.

Next strategy is to gain access for global financing, such as Green Climate Fund (GCF), Global Environment Facility (GEF), and other global financing sources. To gain the access, there are some matters that should be improved, such as governance, data collection, and register system to prove how big the achievement of reducing greenhouse gas emissions in Indonesia. The last strategy is to boost investment from private, business to business, to between governments and states.

Laksmi said, one of the innovation is to increase governance or boost effort to mobilize financing sources to control climate change outside the State Budget.

“Thus, in October 2019, government has released Environmental Fund Management Agency (BPDLH). It is aimed to manage and distribute every kind of financing to support our effort to protect environment, including climate change,” Laksmi said.

BPDLH gas managed the available financing resources, such as revolving fund facility from reforestation fund, which was managed by Public Service Agency under the Ministry of Environment and Foresty. BPDLH also handle financing from RBP, GCF, REDD bilateral partnership Indonesia-Norwegia, and also Forest Carbon Partnership Facilitiy, BioCarbon Fund, and others.

“The receiver of BPDLH is very broad. Central government, regional government, businesses, general public, and stakeholders are expected to contribute positively to protect environment, inclusing adaptation and mitigation of climate change,” Laksmi said.

Another financing innivation is developing policy to use the economic value of carbon pricing. Laksmi explained that the draft of Presidential Decree on carbon pricing to reach NDC target and control carbon emission has reached final step.

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