Indonesia Needs $9b To Reach Carbon Emissions Target

Indonesia Needs $9b To Reach Carbon Emissions Target

14 January 2010

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Indonesia — Indonesia will need at least Rp 83 trillion ($9 billion) to finance efforts to reduce its carbon emissions by 26 percent by 2020, and another Rp 85 trillion in international support if it is to achieve the more ambitious 41 percent emissions cut target, an environment official said on Wednesday.

President Susilo Bambang Yudhoyono made the bold emissions cut pledge at a G-20 meeting in the United States last year.

“The numbers were agreed to at a meeting between each [relevant] government agency and the Coordinating Ministry for the Economy,” said Sulistyowati, assistant deputy for climate change impact control at the ministry.

“We don’t have the budget breakdown yet for each sector and it can still change because the RPJM [the Medium-Term National Development Plan] has not been approved yet, but that’s the amount that has been approved.”

She said the government had still not decided on whether the funding to achieve the 26 percent figure would be allocated from the state budget or through international assistance.

But the head of the climate change working group at the Ministry of Forestry, Wandojo Siswanto, said it should come from the state budget because meeting the emissions cut target was a national effort.

Sulistyowati also said the government was now looking at seven sectors to meet the emissions cut target, up from the original three. Initially, the cuts were only going to come from the forestry, energy and solid waste sectors. The new plan includes peatland, transportation, industry and agriculture.

“The biggest cuts are coming in the forestry sector, with 13.3 percent coming from land-use change and 9.5 percent from peatland [management]. The rest will come from the other five sectors,” she said. “Why did they get the biggest portion? Because, based on the country’s emissions inventory, land-use change contributed 48 percent of emissions, peat fires 12 percent, energy 21 percent, waste 11 percent, agriculture 5 percent, industry 3 percent and transportation 0.3 percent.”

Sulistyowati said the breakdown of the 26 percent target could still change as each sector was still determining what reductions they could make.

This new breakdown of how the 26 percent target would be met is the third version released by the government.

Last October, former Environment Minister Rachmat Witoelar said the cuts would be generated from two sectors. He said 17 percent of the reductions would come from the energy sector through energy efficiency and renewable energy, and 9 percent from the forestry sector through a reduction in illegal logging, forest fires and improved peatland management.

Less than two months later, ahead of the UN Climate Change Conference in Copenhagen, those figures changed, with newly installed State Minister for the Environment Gusti Muhammad Hatta saying that 14 percent of the emissions reductions would come from the forestry sector through reforestation programs and the reduction of deforestation and degradation, 6 percent from the energy sector through energy management and 6 percent through waste management schemes.

Sulistyowati said the plan would be presented to the UN Framework Convention on Climate Change, as required.

“Indonesia, as a developing country, is obliged to submit NAMAs [Nationally Appropriate Mitigation Actions] to the UN by the end of this month in order to follow the Bali Action Plan, which requires [actions to mitigate the impact of climate change] to be measurable, reportable and verifiable,” she said.

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