Indonesia’s SD Criteria & Indicators and DNA for CDM Projects

1. Indonesia’s SD Criteria & Indicators and DNA for CDM Projects Hendry Baiquni Head of CC Division, Ministry of Environment Indonesia Skillshare Workshop: Regional Institutional Capacity Building in the Implementation of CDM in ASEAN Member Countries Asean Secretariat, 18-19 March 2004

2. Indonesia Follows the Path of KP 450 ppm 350 ppm KP enters into force? 1st commitment period 00 90 95 97 99 08 - 12 94 04 02 (COP-1) (COP-3) KP (COP-5) IPCC’s Report on GHGs CDM Projects may start CDM Implementation UNFCCC entered into force 5.2% below 1990’s level as global target Country Study National Committee on CC First National Communication National Committee on Climate & Env. Signed the KP Ratified the UNFCCC through Act 6/1994 ALGAS (1996-1998) Ratification, DNA, Modalities, Procedures, etc. AIJ Projects (1996-2000)

3. Indonesia Progress Report Capacity Building for KP/CDM Activity Status • Ratification • National Committee & Technical Team on Climate Change • DNA and SD Criteria & Indicators for CDM Projects • Materials needed for ratification process: • Draft • Translation • Academic Paper • Awareness Raising/ Consultation • Initiative Permit from the President (July 2003); Inter-Ministerial Committee had beeb established • Minister of Environment Decision No. 53/2003 (April 2003) • In final draft (GTZ-support) • Available • Had and being carried out

4. KP Ratification Process 8. Issuing the Act 7. Ratification Process within the Parliament 6. Drafting the Presidential Statement/Request to Parliament to Ratify (by the State Secretary) 5. Proposing the final draft of the Act to the President through MoFA and State Secretary 4. Proposing the draft of the Act to MoFA, Ministry of JHR and others for opinion 3. Drafting the Act 2. Establishing theInter-Ministerial Committee 1. Getting President’s Permit for MoE to Initiate the Ratification Process (through MoFA)

5. Criteria and Indicators for Sustainable Development for CDM Projects in Indonesia • A. Environmental Sustainability • B. Economic Sustainability • C. Social Sustainability • D. Technology Sustainability

6. A. Environmental Sustainability • A.I. Environmental sustainability by practicing natural resource conservation and diversification • A.I.1. Maintain sustainability of local ecological functions • A.I.2. Not exceeding the threshold of existing national, as well as local, environmental standards (not causing air, water and/or soil pollution)

7. A. Environmental Sustainability • A.I.3. Maintaining genetic, species, and ecosystem biodiversity and not permitting any genetic pollution • A.I.4. Complying with existing land use planning • A.II. Local community health and safety • A.II.1. Not imposing any health risk • A.II.2. Complying with occupational health and safety regulation • A.II.3. There is a documented procedure of adequate actions to be taken in order to prevent and manage possible accidents

8. B. Economic Sustainability • B.I. Local community welfare • B.I.1. Not lowering local community’s income • B.I.2. There are adequate measures to overcome the possible impact of lowered income of community members • B.I.3. Not lowering local public services • B.I.4. An agreement among conflicting parties is reached, conforming to existing regulation, dealing with any lay-off problems

9. C. Social Sustainability • C.I. Local community participation in the project • C.I.1. Local community has been consulted • C.I.2. Comments and complaints from local communities are taken into consideration and responded to • C 2.. Local community social integrity • C.2.1. Not triggering any conflicts among local community

10. D. Technology Sustainability • D.I. Technology transfer • D.I.1. Not causing dependencies on foreign parties in knowledge and appliance operation (transfer of know-how) • D.I.2. Not using experimental or obsolete technologies • D.I.3. Enhancing the capacity and utilisation of local technology

11. Basic functions of DNA • Stating that the country’s participation in a CDM project activity is voluntary • Stating that the project activity assists the country in achieving sustainable development • Stating that the project have fulfilling related national environmental regulation such as environmental impact assessment • Stating that stakeholders’ comment have been taken into account

12. Indonesia’s DNA National Committee on Climate Change DNA-CDM National Commission on CDM Experts Secretariat Stakeholders Forum Technical Committee

13. Function of Indonesia’s DNA • Regulatory (mandatory) • Granting recommendation to CDM project proposals that pass Indonesia’s sustainable development criteria • Tracking and annual reporting to the UNFCCC Secretariat • Promotional (optional) • Facilitating communication between investors and project proponents as well as other stakeholders • Facilitating capacity building for Indonesian institutions to be able to propose and implement CDM projects • Providing information on available CERs and/or CER potential to prospective buyers

14. DNA: The Board A. Tasks: • Grant (or refuse) recommendation for Project Proposals submitted by the Project Proponents • Recommendation based on the evaluation by the Technical Committee. • When necessary, the recommendation also accommodates advice from the Expert Group as well as input from a Stakeholder Forum • Approve and deliver the results of document tracking, project monitoring and evaluation, as well as the annual report to the UNFCCC Secretariat • Develop policies and guidelines for the DNA to carry out its promotional functions (i.e. communication, capacity building and marketing information) • Organise Internal Coordination Meeting and Decision-making Meeting • Organise Stakeholder Forum meeting • Accept input and recommendations from the head of relevant institutions on the appointment and replacement of Technical Committee’s members as well as suggest the replacement of a Technical Committee’s member to the relevant head of institution • Make personnel decisions for the Secretariat

15. DNA: The Board (2) B. Membership: • Consist of one chairman and seven members (echelon I) of government representatives from: Ministry of Environment, Ministry of Energy and Mineral Resources, Ministry of Forestry, Ministry of Foreign Affairs, Ministry of Trade and Industry, Ministry of Home Affairs and National Development Planning Board. • Chairman of the Board is Minister of Enviroment and thus, the member from the Ministry of Environment does not have the right to vote. • Members of the Board is appointed based on suggestion from institutions represented in the Board, and initially will be legalized by Minister of Environment’s Decree. Henceforth, it is suggested the Board will be legalized by Presidential Decree. • The first service period of the Board lasts for a year. Henceforth, the service period will be decided by Presidential Decree. • Member of the Board will be replaced if he/she: • is suggested to be replaced by the institution he/she represented • resigns • deceased or disabled thus unable to perform her/his duties

16. DNA: The Technical Committee A. Tasks: • Evaluates project proposals based on sustainable development criteria and indicators. May ask for inputs from the Expert Group and other Stakeholders. • Presents its evaluation report (recommendation) to the Board through the Secretariat. • Provides input to the Board relating to the implementation of the DNA’s promotional functions.

17. DNA: The Technical Committee (2) B. Membership: • Chairman of Technical Committee is held alternately by one of the representatives of technical ministries according to project proposal under evaluation • Technical Committee members are proposed by institutions relevant to CDM implementation by considering their expertise. • Ministry of Environment • Ministry of Energy and Mineral Resources • Ministry of Forestry • Ministry of Transportation • Ministry of Agriculture • Ministry of Trade and Industry • Energy NGO representative • Forestry NGO representative • APKASI (Association of Regency Governments of Indonesia) representative • APEKSI (Association of Indonesian Municipalities) representative • Members of Technical Committee work with the invitation from the Board according to the characteristics of project proposal under evaluation • Technical Committee membership ends when: • Not attending two meetings consecutively • Replaced by the institution he/she represented • Resign • Violate DNA Code of Conduct • deceased or disabled thus unable to perform her/his duties

18. DNA: The Experts Group A. Functions: • Assists Technical Committee if requested by Technical Committee through the Secretariat • Provides additional evaluation on the project proposal if requested by the Board through the Secretariat • Provides a second opinion on the Technical Committee’s evaluation if requested by the Board through the Secretariat

19. DNA: The Stakeholders Forum A. Functions: • Stakeholder Forum is an informative consultation forum to convey information on the proposed CDM project and accommodate comments as well as complaints on the project • Stakeholder Forum provides input on project proposals if requested by the Board • Stakeholder Forum may assist project proponent in gaining support among stakeholders for the proposed project • Stakeholder Forum is rather a participative and open multiparty discusion than technical experts discussion on the proposed project • Stakeholder Forum is held at local level and its notes of meeting have to be included in PDD as attachment

20. DNA: The Secretariat A. Tasks: • Facilitates the evaluation process of the submitted project proposals • Assist the Board in facilitating Technical Committee evaluate project proposals, particularly in the implementation of sustainable development criteria and indicators, compliance to environmental regulations and taking stakeholders’ comment into account. • Assists the Board in organising Stakeholder Forum Special Meeting for proposed projects that have not held public consultation or need additional consultation with their Stakeholders. • Assists the Board if there were appeals • Manages office administration of DNA • Stores any documentation on project activities • Prepares tracking document and annual report • Organise Board meetings • Conducts other administrative functions • Executes the promotional functions determined by the Board • Develops capacity building programs for CDM stakeholders • Conducts promotional and marketing activities or CERs produced project owner in Indonesia by • Facilitates communication and colaboration between foreign CDM investors and project proponents as well as other stakeholders • Makes a list of Experts (roster) complete with their expertise and will update the list with the newest information on the availability of experts

21. Flowchart of Approval Process by DNA