Indonesia from 2013-2018 Dicky Edwin Hindarto Indonesia JCM - - PowerPoint PPT Presentation

The experiences of JCM scheme implementation in Indonesia from 2013-2018

Dicky Edwin Hindarto Indonesia JCM Secretariat

Indonesia NDC: The biggest opportunities is in forestry sector whilst the fastest growing emission is energy

Sector GHG Emission level 2010*

(MTon CO2e)

GHG Emission Level 2030 GHG Emission Reduction

Annual Averag e Growth BAU

(2010- 2030)

Annual Averag e Growth 2000- 2012

BaU CM1 CM2 MTon CO2e %Total BAU

CM1 CM 2 CM1 CM2

Energy*

453.2 1669 1355 1271 314 398 11% 14% 6.7% 4.5%

Waste

88 296 285 270 11 26 0.38% 1% 6.3% 4.00%

IPPU

36 69.6 66.85 66.35 2.75 3.25 0.10% 0.11% 3.4% 0.10%

Agriculture

110.5 119. 6 110.4 115.9 9 4 0.32% 0.13% 0.4% 1.30%

Forestry**

647 714 217 64 497 650 17.2% 23% 0.5% 2.70%

TOTAL

1334 2869 2034 1787 834 1081 29% 38% 3.9% 3.20%

*Including Fugitive **Including Peat Fire CM1 = Counter Measure (Unconditional Mitigation Scenarios) CM2 = Counter Measure (Conditional Mitigation Scenarios)

Energy gy deman and d growt

• wth in Indo

dones nesia ia is still very depen pended ded on econom

• mic

ic and population ulation growt

• wth.

. Energy gy effi fici cien ency cy and renew ewab able e energy gy implem lement entat atio ion must be enhanced anced!

Private sectors barriers on implementing climate change mitigation actions

Technology

Financing

Regulation Information

Awareness

Capacity

• The most challenging aspect for private sector to

implement mitigation actions is financing.

• Financing, technology, and capacity building need to

be supported by other parties.

• Government has limited budget and capacity to

support these.

Basic concept of JCM

The Objective of JCM ▪ Facilitate diffusion of leading low carbon technologies, products, systems, services, and infrastructure as well as implementation of mitigation actions, and contributing to sustainable development of developing countries. ▪ Evaluate contributions to GHG emission reductions/removals from developed countries in a quantitative manner, through mitigation actions implemented in developing countries and use those emission reductions or removals to achieve emission reduction targets of the developed countries. ▪ Contribute to the ultimate objective of the UNFCCC by facilitating global actions for emission reductions or removals

The JCM cooperation scheme

39 private companies 2 Stated Owned Companies More than 100 companies are involved in JCM projects and FS Indonesian Ministries Indonesian Regional Government Japan Ministries Japanese Private Sectors State Owned Company Indonesia Private Sectors Third Party Entity 11 companies

Institutions related to JCM implementation

JCM City-to-City scheme

7

Large-scale Feasibility Study (In line with the city master plan) Project implementation The JCM large-scale scheme participant Bilateral Cooperation City in Indonesia City in Japan

Cooperation (LoI, MoU)

Indonesia Entities Japan Entities

Indonesia Japan

Collaboration between private companies, NGO, CSO and Universities

The Implementation of City to City Collaboration: It is still on-going

City-to-City Cooperation Surabaya & Kitakyushu Bandung & Kawasaki Batam & Yokohama Semarang and Toyama

JCM financing schemes

Model Project 50% 50%

Subsidized by MOE Investment by Participants

MOEJ ADB JFJCM (Trust Fund) OCR/ADF* JCM Credits Grant Loan/ Grant etc. * OCR: Ordinary Capita lResources, ADF: Asian Development Fund Project Additional costs with adoption of advanced low-carbon technologies Mitigation through conventional technologies (Selection from pipeline projects) MRV Other financial institutions and funds Loan/ Grant etc. Co- financing Contribution

Total Cost of the installation

GHG Emission Reduction

Subsidized by METI

Total investment is discussed and negotiated with METI

Up to more than 50%

ADB Trust Fund – JFJCM Demonstration Project

Investment by Participants

Total investment of JCM implementation in Indonesia

1 2

Grant for Feasibility Study

10 mio US$

Study and Partnership with several institutions in Japan and Indonesia

Total investment of Projects Implementation

132 32 Mio US$ $ for

• r

31 31 projec jects (12 of it

had been accomplished) 62 Mio US$ of Government

• f Japan Subsidy

70 Mio US$ of Project Participants investment

sustaina sustainable ble de development elopment an and d emi emissi ssion

• n red

educ uction tion

Feasibility Study

*Per 2017, 115 feasibility studies have been conducted;

1 1 1 1 2 2 1 1 6 7 4 7 3 5 6 7 10 4 4 1 3 1 2 8 8 3 1 2 1 2 1 2 2 1 2 1 1

5 10 15 20 25 30

2010 2011 2012 2013 2014 2015 2016 2017

Feasibility Studies Conducted in 2010- 2017

Agriculture Carbon Capture & Storage LULUCF & REDD-plus Energy Efficiency Fugitive Emission Large-scale Low-Carbon City Renewable Energy

Step by step of JCM scheme

Measurement Reporting Verification

JCM infrastructure in Indonesia

Guideline:

• 1. Project Design

Document

• 2. Proposed

Methodology

• 3. Third Party Entity
• 4. Validation and

Verification

• 5. Sustainable

Development Implementation Plan and Report

Procedure: Project Cycle Procedure

Rules: 1. Rules of Implementation

• 2. Rules of Procedure for JC

Registry system Methodologies: 15 methodologies of energy efficiency and renewable energy have been developed ISO 14065 based

*Methodology and guideline are the most important infrastructure aspect for SD and emission reduction implementation*

All projects must pass SDIP and SDIR procedures

Sustainable Development Implementation Plan (SDIP) Sustainable Development Implementation Report (SDIR) Sets out a plan of the JCM project to contribute to sustainable development based on ex-ante analysis Sets out the achievement of SDIP implementation for a particular monitoring method

7 sustainable development items considered in JCM:

Environmental Impact Assessment Pollution Control Safety and Health Natural Environment and Biodiversity Economy Social Environment and Community Participation Technology

Energy Saving at Convenience Stores

• PT. MIDI UTAMA

INDONEISIA Tbk LAWSON, INC

Expected carbon emission reduction 28,5 ton CO2/year per store In this project, 12 Alfa Midi stores installed a highly efficient cooler installation, air conditioning, LED lamp. Through the implementation of the project, they are able to reduce electricity consumption to up 25% of the total electricity demand.

12 Alfa Midi at Jakarta,Bekasi, Tangerang, Depok

Energy Saving at Convenience Stores

12 Alfa Midi at Jakarta,Bekasi, Tangerang, Depok

Installation of Solar Power System and Storage Battery to Commercial Facilities

AEON Mall Indonesia Itochu Corporation

Expected carbon emission reduction 549 ton CO2/year 500 KW Installation of Solar Power System and Storage Battery to Commercial

• Factory. The recently-operated Rooftop Solar Power generates 500 KW electricity

for lighting system in shopping center.

Aeon Mall, Jakarta Garden City, Cakung, East Jakarta

Installation of Solar Power System and Storage Battery to Commercial Facilities

Aeon Mall, Jakarta Garden City, Cakung, East Jakarta

Reducing GHG Emission at Textile Factories by Upgrading to Air-saving Loom

• PT. EASTERNTEX
• PT. INDONESIA SYNTHETIC

TEXTILE MILLS

• PT. CENTURY TEXTILE INDUSTRY

TBK

TORAY INDUSTRIES, INC. TORAY INTERNATIONAL, INC

Expected carbon emission reduction 566 ton CO2/year “JAT 810” system used in the textile factory, is able to reduce air supply consumption up to 20% which directly reflect to the electricity consumption on the air-compressor system . This utility is installed in 3 textile factory at Banten, Jakarta, and East Java.

Banten, Jakarta, & East Java

Reducing GHG Emission at Textile Factories by Upgrading to Air-saving Loom

Banten, Jakarta, & East Java

Solar PV Power Plant Project in Jakabaring Sport City

PDPDE SUMATERA SELATAN SHARP CORPORATION

Expected Carbon Emission Reduction 1.303 ton CO2/year This solar power installed in Jakabaring sport center is able to generate electricity

• f 2 MW. This project is prepared for the electricity supply in Asian Games 2018

and promotes green sport event in South Sumatera. The project is expected to be completed in end of February 2018.

Jakabaring Stadium, Palembang South Sumatera

Solar PV Power Plant Project in Jakabaring Sport City

Jakabaring Stadium, Palembang South Sumatera

Power Generation by Waste-heat Recovery in Cement Factory

• PT. Semen Indonesia

Tbk JFE Engineering Corporation

Expected carbon emission reduction 122.000 ton CO2/year 32 MW Waste Heat Recovery Power Generation at Cement Factory. 4 factory units at PT Semen Indonesia in Tuban are able to capture its flue gases emission which is a hot 400 degree celcius air to be used as boiler to generate electricity. This system enables to reduce electricity consumption up to 25% of the total electricity required in the factory.

• PT. Semen Indonesia at Tuban, East Java

Installation of Gas Co-generation System for Automobile Manufacturing Plant

• PT. Toyota Motor

Manufacturing Indonesia Toyota Tsusho Corporation

Expected Carbon Emission reduction 20.310 ton CO2/year

8 MW cogeneration system at PT. Toyota Motor Indonesia. This cogeneration system is able to deliver 30% of the total factory electricity demand and also replaces the needs of utilising the other two boilers.

• PT. Toyota Mobile Manufacturing Indonesia, Karawang, West Java

Installation of Gas Co-generation System for Automobile Manufacturing Plant

• PT. Toyota Mobile Manufacturing Indonesia, Karawang, West Java

Power Generation by Waste-heat Recovery in Cement Factory

• PT. Semen Indonesia at Tuban, East Java

City-to-City Cooperation

Surabaya and Kitakyushu City-to-City Cooperation

Nishihara: Waste Management Project

• A collaboration between Nishihara Co. with Dinas Kebersihan dan Pertamanan (DKP) Surabaya
• In 2013, the FS is registered under the JCM scheme. In the subsequent year it has no longer registered

under the JCM however the collaboration is still continue until now.

The sister-city scheme allows collaborations between cities in Indonesia and Japan even without involvement of JCM scheme Nishihara Depo

Handling 20 tons of waste daily whereby 85%

• f the waste is selected for resale. Currently

the management is transferred to DKP

Nishihara Composting Center

Started its operation in 2015 with support from

• JICA. Handling 8 tons of waste from 4 traditional

market and parks in Surabaya daily

City-to-City Cooperation

Surabaya and Kitakyushu City-to-City Cooperation

Energy Saving for Air-Conditioning at Shopping Mall with High Efficiency Centrifugal Chiller

• PT. PAKUWON JATI,Tbk

NTT FACILITIES,INC

Expected carbon emission reduction 966 ton CO2/year NTT Facilities dan PT. Pakuwon Jati Tbk, worked together to implement a highly efficient chiller (centrifugal chiller). This chiller is able to reduce electricity usage

• f 1.136 MW/year. This chiller is utilised for the shopping center air-conditioner
• perational usage.

Mall Tunjungan Plaza, Surabaya, East Java

Some challenges on Indonesia JCM implementation (and other climate change mitigations)

Reliability of New Technology Because of most of the technologies are new, it requires more analysis in risk management, feasibility and other impact of implementing the technology. A success story of the partner or a demo project is very helpful in this situation. High Initial Capital Costs Environment friendly technology usually more pricey than conventional one. In some cases cash flow is more important than economic value. Technical Barrier The management has to assess the integration of new technology to their existing equipment & system. Clarity of future Cost & Responsibilities The Management has to ensure that the future liability, responsibilities, or other consequences doing the projects are identified and clearly states which will bear the cost/responsibility. Environmental Awareness The awareness and attention to environmental issues have to be well developed in top management before the decision to do CDM, JCM or other “Environmental Friendly Initiatives”. Currency Risk Indonesia has experienced currency crisis in the past, this has actually createda serious impact on some companies/project during that times. This situation forced the Top Management to be more cautious in the decision making. Carbon Credit Sharing The management needs time to understand and analyze the utilization of carbon credit since this is new thing for them. Also possibility to claim the ownership of the credits could be an issue. Procurement Risk Indonesia is still in the development stages

• f Procurement Practices especially in

Government and State Owned Enterprises. Relationship & Trust to Partner In many cases, the partner should have proven achievement to convinced the management, but that is not enough. The Partner should also convinced that the local company will also enjoy the result and benefit of the projects. Transparancy and Accountability In some cases, Indonesia project participant candidates are very difficult to be transparant in their business processes and financial system. Communication and Understanding Among Ministries It is a fact that one of the most difficulty to develop a new initiative in Indonesia is the government acceptance. The scheme should be well understand among ministries and government stakeholders in order to enhance acceptance and ownership. Regulatory Barrier Both participant have to be sure that the implementation is comply with all related regulations & policies, including that related to the new national and international climate policies.

Communication and JCM

Most of the challenges were caused by lack of communication between stakeholders and lack of capacity. In this regard, we developed communication strategy and implemented communication activities to solve the challenges and promote JCM scheme. Indonesia JCM scheme communication strategy was developed in 2014 to fulfill the communication gap and to do JCM promotion. Communication activities and materials were developed based on this strategy.

Communication activities in JCM implementation

• We maximise our website, develop material

communication, as well as using facebook, twitter, and youtube to disseminate the JCM scheme.

• We have been participated in many national

and international events on climate change issues.

• JCM has several media converages and actively

conduct press conferences to enhance JCM understanding among stakeholders.

Not only the emission reduction that we have delivered, but also other co-benefits

Environment Society Economy

Sustainable Development Impacts Climate Change Impacts

MRV MRV MRV MRV MRV MRV MRV MRV MRV MRV

Every JCM projects are impelemented not only for the emission reduction purposes but also must be embedded with SD criteria that can be

• measured. In Indonesia, we de

we develop elop a a set set of

• f SD

SD criteria criteria MRV to to en ensur sure tha e that e t ever ery y pr projec

• ject wil

t will l de deli liver er po posi sitiv tive e impac impacts ts an and d en envi virome

• menta

ntal l inte integrity rity.

JCM may contribute to SDG goals achievement

• Every project delivers transparent and

measurable achievement

• Sustainable development criteria must be

embedded in every activities

• Direct SDG criteria could be achieved

through our projects

• It is not an easy task, but it ensures the

sustainability of the scheme.

• JCM, particularly in Indonesia, has its own

SD criteria which shows the scheme’s contribution to UN’s SDG

• With these set of criterias, we are

confident that JCM will deliver positive impacts to Indonesia in sustainable manner.

Lesson learn from JCM experiences

Good financing scheme for climate change mitigation A methodology is a must Transparent procedure is the key Communication strategy must be good Good and transparent infrastructures and processes Sustainable development is

• ne of the

evaluation criteria Good cooperation among stakeholders MRV that based on international standards Based on good FS and actual condition Real emission reduction program that can be duplicated and registered

• 1. In JCM scheme, every type of technology must have one methodology.
• 2. The JCM methodologies currently are being explored for the ISO 14080

examples that will be implemented soon.

• 3. JCM implementation from financing, methodology development, project

implementation, to the registry system can be good examples for the NDC implementation in Indonesia, particularly that used private sector participation.

The evolution of JCM scheme in Indonesia

JCM basic concepts JCM business to business implementati

• n

JCM City to City cooperation Sustainable low carbon growth implementati

• n

Sustainable development and emission reduction achievement

JCM implementation in Indonesia is an evolving scheme that allow us to enhance benefits and long term goals of

• implementation. The JCM implementation should be

harmonized with national law and regulation as well as targets on emission reduction and sustainable development.

New challenges

1.ICAO CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation). 2.ISO 14080 for climate change methodology development. 3.Implementation of article 6 (market and non market mechanism). 4.Domestic and international market based mechanism implementation in other countries.

What must we do?

1.Mainstreaming JCM scheme into national strategy and action of national emission reduction and NDC implementation. 2.Integrating all of the JCM emission reduction achievement to the national registry system. 3.Disseminating JCM experiences and lesson learn to the Indonesia stakeholders, particularly private sectors. 4.Using JCM best practices to other Indonesia mitigation activities.

Our website: http://jcm.ekon.go.id Contact us at secretariat@jcmindonesia.com Sekretariat JCM Indonesia Gedung Kementerian Koordinator Bidang Perekonomian Lt.2

• Jl. Medan Merdeka Barat 7, Jakarta 10110

Thank you! Terima kasih!