Transcript Slides for GIS - image.kadin

KADIN – PAKLIM Briefing
k
„Business and Climate Change in Indonesia“
7 July 2011
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Overall objective and starting points
Objective
 Intensify the cooperation between GIZ/ PAKLIM and KADIN to jointly
work on increasing awareness and engaging Indonesian companies
in climate change mitigation activities in Indonesia
Starting points
 PAKLIM’s commitment to strengthen its private sector engagement
and Call for Proposals 2011
 Kadin’s White Paper on the issues of Climate Change and Green
Growth
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Contents
 Introduction GIZ / PAKLIM in Indonesia
 Climate change in Indonesia
 Integration of climate change into national development planning
 Private sector involvement in climate change mitigation
 Focus: The industry sector and climate change
 PAKLIM portfolio on cooperation with the private sector
 PAKLIM Call for Proposals
 Cooperation opportunities between KADIN and PAKLIM
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Who is GIZ?
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A 100% federally owned, public-benefit enterprise, that supports the
German Government in achieving its development policy goals.
GIZ’s purpose is to promote international cooperation for sustainable
development and international education work.
Established on 1 January 2011, GIZ brings together under one roof the
long-standing expertise of DED, GTZ und InWEnt.
– Implements commissions for the German federal government and
other national and international, public and private-sector clients.
– Furthers political, economic, ecological and social development
worldwide, and so improves people’s living conditions.
– Provides services that support complex development and reform
processes.
Operates in more than 130 countries worldwide.
Employs approximately 17,000 staff members worldwide, more than 60%
of whom are local personnel.
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GIZ in Indonesia at a glance
1975
2007
3 priority areas:
Indonesian-German
development
cooperation through
GTZ
Government
negotiations to
renew priority areas
• Private Sector
Development
• Good Governance
• Climate Change
3 Climate Change programmes:
• Environment: “PAKLIM”
• Forest: “FORCLIME”
• Transport: “SUTIP”
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PAKLIM (‘Policy Advice for Environment and Climate Change’)
What we do?
How we work?
Our approach
• Empowering Indonesian
public and private
stakeholders to
implement climate
change strategies and
instruments
Supporting Indonesian partners
through:
• Policy advice
• Capacity development
• Technical assistance
• Multi-level
• Multi-stakeholder
• Cross-sectoral
PAKLIM
Policy advice
Cities and urban
areas
Industries and
industrial estates
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Climate Change
in Indonesia
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Integration of climate change into Indonesian development strategy
MILESTONES:
 The Government of Indonesia (GOI) puts
CC on the political agenda after the
Climate Summit in Bali (2007)
RPJP/
RPJM
Climate Summits
Bali
Road Map
G20Pittsburgh
RAN-GRK
ICCSR
 2009 the Indonesian president announces
a GHG emission mitigation target by 2020
 The GOI officially launched its Climate
Change Sectoral Roadmap (ICCSR)
regarding mitigation in March 2010
 The National Action Plan for GHG
Emission Reduction (RAN-GRK) defines
the required measures per sector for
reaching the target
Nationally Appropriate Mitigation Actions
(NAMAs)
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Scenario of 2020 GHG emission reduction and RAN GRK
President commitment G-20 Pittsburgh and COP15
to reduce te GHG emission in 2020
= 41%
With international
support
-15%
Unilateral (without
international support)
-26%
Forestry & peat
Waste
land
Waste
Agriculture
Industry
Energy &
transport
RAN-GRK
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The role of Indonesia’s private sector in climate change mitigation
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The Private Sector is the driving force for development and growth in
Indonesia (Indonesia is said to soon become the 2nd “I” in BRIC)
With this growth, however, it is also an increasingly important contributor to
Indonesia’s emission levels
– E.g. due to the large amounts of energy consumed for companies’ production
activities and daily operations, process-related generation of GHG and waste
produced in the various industry sectors, commercial land use conversion
•
The Private Sector is expected to play an essential role in Indonesia’s
mitigation regime to achieve the national mitigation targets in the defined RAN
GRK sectors
Companies predispose of important competences, expertise and largely also
financial means for successfully tackling the issues posed by climate
change and for helping to reduce GHG emissions by applying the right
management and investments approaches
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Public expectations towards the private sector and ‘routes’ for involvement
• Invest in and implement new technologies
• Engage in mitigation measures, e.g. energy efficiency improvements,
fuel switching, major process modifications
• Esp. multinational corporations (MNCs) and large national companies
to act as “climate champions” for other (national) businesses
• Provide qualified personnel, transfer skills and experiences
• Show corporate social responsibility (CSR)
• Do research and innovate
Routes for
involvement
Policies and
regulations
Economic and
fiscal instruments
Voluntary
actions
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Example:
Industry
sector in Indonesia and climate change
Mitigation
Target
by 2020
•
The industry sector accounts for 35%* of emissions from fossil fuel in Indonesia due to:
• Energy consumption (accounting for 48% of overall final energy consumption in
Indonesia)
• Production processes
• Waste
•
Challenge: balance the two overarching policies objectives:
• Improve industry competitiveness
• Achieve low-carbon industrial development
 Largest GHG emitting industry sectors are:
•
The RAN-GRK defines mitigation strategies
in the industry sector with regard to:
- Energy efficiency
- Alternative energy
- Efficient production processes
*World Bank (2008): Low carbon development options for Indonesia
Cement
Iron & steel
Pulp & paper
Fertilizer/ other chemicals
Textiles
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So
far, only few
policies
instruments targeted to mitigate climate change
Mitigation
Target
byand
2020
Examples of existing regulatory foci and initiatives
Energy
• Energy diversification (PerPres No. 5/2006)
• Energy efficiency and conservation (e.g. gov.
reg. No. 70/2009)
• Development of green industry
Air pollution
• Regulate emissions from static and non/static
sources (emission standards set for 4
industries and for selected equipment)
Waste management
• Control waste management activity (esp.
hazardous waste) (gov. reg. No. 18/1999)
• Waste utilization (gov. regulation No.18/2008)
Subsidized loans
• Soft loan programmes for green investments
from different donors (e.g. Japan, Germany)
via MoEnv.
Tax subsidies
• For customs duty, sales tax (PPN), income
tax (Pph) – for energy and industry sectors
Fiscal subsidies
• For investment in machinery equipment to
improve industrial competitiveness
• Support for investment in CC mitigation
technology
 A challenge for the GOI, but

An opportunity for the private sector to become involved and actively
shape the future boundary conditions
 For instance in partnership with PAKLIM 
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PAKLIM private sector cooperation – Overview
Projects/ Initiatives
Development
Partnerships
develoPPP.de
integrated
DPP
PAKLIM Call for
Proposals 2011
Private Sector
Dialogues
• Merck: “Environmentally Sound Management of
Chemical Waste”; 12/09-12/12; 1,4 Mio.€ (STA)
• OSRAM: “Energy Saving Movement”; 12/09-06/11; 400T€
• Merck customers (e.g. laboratories);
KLH
• Elementary schools & SMKs, local
communities, Indonesian population
• Adidas: “Greening Global Supply Chains – Focus on
Energy”; 05/11-05/13; 168T€
• OSRAM: “Energy Efficient Street Lighting / LED Street
Lighting”; 05/11-12/12; 184T€
• Service providers, local footwear &
apparel suppliers; MoI, ESDM
• Local government; urban population
• “Innovations for a low-carbon future in the Indonesian
Industries”
• Technology providers (D, EU)
• local MNC, SOE, national companies
• Empirical study on “Business and Climate Change in
Indonesia”
• Interviews a.o. with Siemens, SAP, APP,
Sinarmas, Martha Tilaar, Chandra Asri,
DB Schenker
• local CSR networks, associations; KLH
• “Green” CSR
Policy Advice
Partner / Target group
• NAMA (overall concept and sectors industry, energy,
waste, energy efficiency in urban areas)
• Voluntary Partnership Agreements
• ICCTF (Indonesia Climate Change Trust Fund), Green
Finance
• Bappenas, MoI, ESDM, MoHA
• MoI; cement industry
• Bappenas, MoF; Bank of Indonesia
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PAKLIM Call for Proposals 2011
“Innovations for a low-carbon future
in the Indonesian industries”
Development Partnerships with the Private Sector (DPP)
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PAKLIM Call for Proposals 2011
•
Aims to establish new partnerships with private companies to jointly develop
innovative projects under the title of:
“Innovations for a low-carbon future in the Indonesian industries”
 Realize synergies between public and private interests:
PAKLIM
• Development of NAMAs (Nationally
Appropriate Mitigation Actions) in
the Indonesian industry sector
• GHG reductions through e.g.
increase in energy efficiency, fuel
switching, and/ or major process
modifications
DPP
Private Sector
• Launching innovative technologies in the
Indonesian market
• ‘Greening’ the supply chain
• Qualified personnel
• CSR and good relations with clients and
people in the surrounding community
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Who should participate?
 National and international companies already active in Indonesia and
interested in:
• Investing and jointly implementing innovative technologies and energy
efficiency measures in their own production sites and supply chains.
• Using their CSR funds and experiences for building new climate change
business models and with this to help the local community and to become
climate 'champions'.
 Technology providers interested in entering the Indonesian market and applying innovative
technological business models for industrial enterprises and/ or industrial estates, preferably in the
areas of:
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•
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Process heat/ heat recovery (CHP), co-generation
Efficient boiler and motor systems; automatisation
Fuel switching; renewable energy applications; recycling, efficient material use
 Any company with an innovative proposal for initiating jointly with PAKLIM
a model for the implementation of NAMAs in the Indonesian industry sector.
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Requirements for DPP
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All companies (local, state, regional, international) can submit their proposal
Financial robustness of the company to ensure project funding and
sustainability
Complementarity: PAKLIM's and the private sector’s contributions must
complement each other in such a way that the cooperation enables the two
partners to achieve their objectives more cost-effectively, more efficiently and
more rapidly
Subsidiarity: PAKLIM will provide contribution only if the private partner
would not be able to implement the project without PAKLIM as the public
partner and the measure is not required by law
At least 50% of the costs (prime costs) are borne by the company.
PAKLIM will provide input between EUR 100,000 - EUR 200,000 into the
project. The proposal may also comprise direct inputs by PAKLIM, such as
technical, intercultural or managerial expertise
Project start envisaged for early 2012 with a duration of 1,5 to 2 years
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What are the criteria?
Contribution to the
achievement of PAKLIM
objectives
Accordance with
development policy
Criteria for
DPP
Joint objectives &
substantial contribution
of the company
Subsidiarity &
competitive neutrality
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How to proceed?
• Develop project idea
1
• Fill out entry form
• Submitt proposal by August 31st, 2011
2
• Assessment of proposals by PAKLIM
• Feedback to applicants by October 2011
• Joint development of full project outline for selected
3
proposal(s)
• Agreement and contract signing
4
• Implementation of DPP from early 2012 to end of 2013
[email protected]
www.paklim.org/development-partnerships/call-for-proposals/
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PAKLIM: KADIN’s opportunities for cooperation
 Participate in stakeholder dialogues and workshops representing the private
sector
 Support the Call for Proposals for new development partnerships to support
the NAMA strategy (energy efficiency, renewable energy applications, greening
the supply chains)
 Support the public awareness campaigns for a low carbon development
 Facilitate Voluntary Partnerships (VP) between the MoInd and enterprises
 Participate in the development of a low carbon growth strategy (East
Kalimantan, Java)
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Contact details
Dr. Dieter Brulez
Dr. Maren Breuer
PAKLIM - Policy Advice for Environment and Climate Change
c/o Kementerian Negara Lingkungan Hidup (KLH)
Gedung B Lt.5, Jl. DI Panjaitan Kav 24
13410 Jakarta, Indonesia
T: +62-21-8517186
F: +62-21-8516110
E: [email protected] or [email protected]
I: www.giz.de ; www.paklim.org
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Project Examples
“Development Partnerships with the Private Sector (DPP)”
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Indonesia
Greening global supply
chains – Focus on energy
Partners:
Adidas Group (Sourcing
Ltd. Asia)
05/2011 – 05/2013
Volume: 268.000 €
PAKLIM: 133.000 €
Challenge
 The industry sector accounts for high amounts of GHG emissions
due to energy consumption, inefficient production processes &
industrial waste.
 High need & potential for energy efficiency (EE) measures.
Approach
 Capacity building for service providers and training & technical
assistance for 16 suppliers in the apparel & footwear industries.
 Energy audits and tools for the measurement, monitoring and
reporting of energy performance.
 Implementation of financially feasible EE measures.
Impact
 Qualified service providers, enhanced capacities of selected
suppliers and reduction of the factories’ environmental footprint.
 Model for the measurement and reporting of climate-related
values in supply chains available.
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Indonesia
Energy Efficient Street
Lighting / LED Street
Lighting
Challenge
 Lack of efficient energy due to outdated technologies in commercial
and residential buildings as well as public infrastructural services.
 High potential for cost and energy savings in urban areas.
Approach
Partners:
PT OSRAM Indonesia
 Assessment of technical & economic feasibility of LED street
lighting.
05/2011 – 12/2012
Volume: 184.000 €
PAKLIM: 92.000 €
 Replacement of conventional lights by LED based on an adequate
metering system, lighting management, and a consumption-based
payment for the energy used by public street lighting.
 Identification of financing options for local governments.
 Development of a handbook for energy, cost and CO2 savings
through LED street lighting.
Impact
 Provides a model for NAMA on the energy demand side.
 Cities are able to properly measure used energy and reduce local
energy costs.
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Indonesia
Guideline on Co-processing
Waste Materials in Cement
Production
Partners:
Holcim Group, Indocement
11/2006 – 11/2009
Volume: 90.000 €
Public (ProLH): 30.000€
Challenge
 High environmental impacts from waste, unsafe disposal of
hazardous waste.
 Cement industry has high potential to improve waste management
by applying co-processing.
Approach
 Development of a guideline with the requirements and standards for
co-processing.
 Transfer of ‘lessons learned’ from developed countries.
 Capacity building before launching of co-processing.
Impact
 Decrease the environmental impacts of waste.
 Decrease greenhouse gas emissions.
 Improve waste management and decrease waste handling costs.
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Indonesia
Energy Saving Movement
Partners:
PT OSRAM Indonesia
12/2009 – 06/2011
Volume: 400.000 €
Public: 200.000€
Challenge
 > 19% of total energy consumption is attributed to the use of
artificial light.
 Common use of energy wasting light bulbs.
Approach
 Integrated approach that includes an upgrade of lighting systems at
selected schools and households combined with educational
measures on energy efficiency.
 Students participate in math and essay competitions with focus on
energy saving.
 Nationwide media campaign about energy efficiency.
Impact
 Energy consumption has successfully been decreased by more
than 50 percent.
 The learning module about energy efficiency is being implemented
in vocational schools and will be part of lessons for more than
10.000 students.
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Indonesia
Environmentally Sound
Management of Chemical
Waste
Partners:
Merck
12/2009 – 12/2012
Volume: 1.4 million €
Public: 700.000 €
Challenge
 Growing volume of chemical waste is creating a challenge for
local and national authorities.
 No management expertise in the prevention of health and
environment hazards.
Approach
 Coordination of training units for transfer of expertise at the
micro and macro levels.
 Implementation of chemical waste management systems.
Impact
 Local SMEs are receiving technical support.
 Meso level organisations are applying innovative chemical
waste management strategies.
 Partner countries are harmonizing their frameworks within
ASEAN.
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Indonesia, Nicaragua,
Honduras, Guatemala
Co-financing mechanisms
for hydropower plants
Partners:
South Pole
12/2007 – 02/2011
Volume: 900.000 €
Public: 440.000 €
Challenge
 The majority of the population, especially in rural areas, has no
or just unsteady access to electric energy.
 Current energy sources are not sustainable.
Approach
 Testing, consulting and training for and documentation of
implementation of co-financing mechanisms through Certified
Emission Reductions (CER).
Impact
 Small hydropower plants receive financing through CER.
 Permanent co-financing and improved conditions for Clean
Development Mechanisms (CDM).
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BACKUP
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Portfolio
–
Cooperation with the Private Sector on
“Environment and Climate Change”
Details
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Cooperation with the Private Sector on Climate Change Mitigation (I)
Development Partnerships with the Private Sector (DPP)
Integrated DPP (PAKLIM funded)
adidas
Basics
“Greening Global
Supply Chains –
Focus on Energy”
• 05/11-05/13
• 168T€ (PAKLIM 133T €)
Osram II
“Energy Efficient/
LED Street
Lighting”
• 05/11-12/12
• 184T€ (PAKLIM 92T €)
Facility DPP (develoPPP.de funded)
Merck
Osram I
“Environmentally
Sound Management
of Chemical Waste”
• 12/09-12/12
• 1,4 Mio.€ (STA) (PPP-
“Energy Saving
Movement”
• 12/09-06/11
• 400T€ (PPP-facility
200T €)
facility 700T €)
Approach
Target Group /
Partner
• Capacity building for
service providers and
selected suppliers
• Implementation of
financially feasible
EE measures
• Pilot testing of EE/
LED street lighting
• Handbook for
energy, cost & CO2
savings through LED
street lighting
• Implementation of
chemical waste
managt. systems
• Coordination of
training units for
transfer of expertise
• Upgrade of lighting
systems at selected
schools &households
• Educat. measures &
nationwide media
campaign on EE
• Service providers
• Local footwear &
apparel suppliers
• MoI, ESDM, KLH
• Urban population
• Local government,
KLH
• Merck customers
(e.g. laboratories)
• KLH
• Elementary schools &
SMKs
• Local communities
• Indonesian
population
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Cooperation with the Private Sector on Climate Change Mitigation (II)
Policy Advice
 NAMA - Nationally Appropriate Mitigation Actions
 Support development of the overall strategic concept
 Give sector specific advice for industry, waste, energy efficiency (EE) in urban areas
 Voluntary partnership agreements (VPA)
 Facilitate GOI and selected industries to reduce GHG emissions
 Policy framework stipulating certain actions, e.g. EE standards or GHG emission limits
 Economic and fiscal instruments, incentive schemes to ease private sector
participation
 ICCTF (Indonesia Climate Change Trust Fund) as a funding mechanism and facility for
mitigation and adaptation
 Further the transfer of appropriate technologies to be used by the private sector and
foster research & development for such innovations in Indonesia itself
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Cooperation with the Private Sector on Climate Change Mitigation (III)
Dialogues with the Private Sector
 Empirical study on “Private sector involvement in climate change activities in Indonesia”
 Interviews a.o. with Siemens, SAP, APP, Sinarmas, Martha Tilaar, PT Chandra Asri,
DB Schenker, Holcim, PT Indocement, PT Petrokimia Gresik, PT Chandra Asri, PT
Semen Gresik
 “Green” CSR
 Participation in KLH working group on establishing guideline for “green” CSR and
criteria for evaluation and official recognition
 Initiation of roundtable / stakeholder exchanges on CSR
 Implementation and communication of pilot projects and best practices
 Provision of information and technical assistance to the private sector
 Cooperation with chambers and business associations, e.g. for joint awareness
campaigns for a low carbon development
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