Indonesia’s Policy on CDM Implementation Prasetyadi Utomo Ministry of Environment of Indonesia CD4CDM Workshop Pathumthani, Thailand 19 – 21 October, 2005
National Policy on Climate Change • Accelerate the development of industry and transportation with low emission level through the utilization of clean and efficient technology as well as renewable energy; • Improve the potential of land and forestry to absorb greenhouse gases; • Indonesia adopts international law as a national law to be detailed in the framework of regulation and institutions.
CDM Implementation in Indonesia • Legal background: • Act No.: 23/1997 concerning Environmental Management; • Act No.6/94, Ratification to the UNFCCC; • Act No.17/04 Ratification to the Kyoto Protocol; • Min of Forestry Decree No.14/04 on A/R project. • Institutional strengthening: • Establishment of National Commission on Climate Change (Ministerial decree No.53/03 • Establishment of the DNA Ministerial decree No.206/05) • Active involvement of various stakeholders
National Committee on CDM • Indonesian National CDM Authority (DNA) = ‘Komisi Nasional Mekanisme Pembangunan Bersih’ (KN-MPB) • Established through Minister of Environment decree No.206 Year 2005
KNMPB Secretariat Technical Team Experts Stakeholder Forum Organisation structure and supporting Elements of Indonesia’s DNA on CDM (KNMPB)
Permanent Members • Min of Environment • Min of Energy & Mineral Resources • Min of Forestry • Min of Foreign Affairs • Min of Industry • Min of Transportation • Min of Agriculture • Min of Home Affairs • National Development Planning Board
KNMPB: the Functions • Mandatory function • Approving proposed CDM projects based on the national sustainable development criteria • Tracking the progress of PDD on CDM Exec Board • Non-mandatory promotional function • Facilitating communication among investors and the proponent and other related parties • Facilitating capacity building in proposing and implementing CDM projects • Providing information to support CERs marketing and/or CERs potential
SD Criteria and Indicator for CDM • Environmental Sustainability: • Environmental sustainability through conservation or diversification of natural resources • Local community health and safety • Economic sustainability: • Income generate • Local community welfare • Investment flow • Social sustainability: • Local community participation • No negative impact on community’s social integrity • Improve social facility • Technical sustainability: • Transfer of technology • Improving indigenous/existing technology • Transfer of knowledge • Not used on experimental technology
National Strategy on CDM Implementation in Indonesia • Institutional and legal strengthening • Establish bilateral agreements with Annex 1 countries • Improve coordination among central and local governments • Develop networking among stakeholders (govn’t, NGO, univ, business, etc.) • Improve public awareness, education, training; • Provide access to information on climate change issue
Strategy on CDM Implementation • No specific area for project type of CDM • Highly support of using Renewable energy, alternative energy and clean technology • Simplified approval procedure on CDM proposed • Incentive scheme for CDM Project developer • Promote CDM project potential through international event such as Carbon expo
Energy Policy(Action Plan for Sustainable Development in Indonesia) • Phase out energy market distortion gradually; • Promotion of the renewable energy use and development; • Encourage society applying energy efficiency; • Support on consumption of clean and efficient technology for industry and trade sector; • Restructure prices of various energy type.
Policy in Non Energy Sector • Sustainable forest management • Improvement on agricultural system • Application of biotechnologyengineering to increase agricultural products • Management of agricultural practices in less fertile land with dry land variety
Perspective on Future development of CDM • Indonesia has a number of ‘promising’ potential CDM projects • Indonesia has attracted Annex 1 countries to become the Host Country for CDM • Increasing enthusiasms from local business player as well as other stakeholders in CDM • Strengthened by the establishment of KNMPB (Indonesian DNA)
Further Information Deputy Assistant for Climate Change Impact Control Tel.: +62 21 8517164 Fax.: +62 21 85902521 E-mail : email@example.com Indonesia DNA: dna-cdm.menlh.go.id Thank You