Post on 07-Jun-2020
APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
Overview Page 2
1) Overview
2) Project Background
3) Approach and Methodology
4) Project Target Area
5) Key Result 1 – LCMT High Level Vision Statement
6) Key Result 2 – LCMT BAU Scenario
7) Key Result 3 – LCMT High Potential Low Carbon Measures
8) Key Result 4 – LCMT Mitigation Scenario
9) Key Result 5 – LCMT Contribution to National Policy Objectives and
Achievement of Sustainable Development Benefits
10) LCMT Investment Requirements
11) Way Forward
APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
Project Background Page 3
Low Carbon Model Town (LCMT) Initiative: Initiative with the goal of encouraging the creation of low-carbon communities across the APEC region, and to share best practices to make such communities a reality. Goal of Feasibility Study under LCMT Phase 5: Provide government officials and stakeholders in Bitung and North Sulawesi with valuable advice on how to design, develop and implement a low carbon development plan with measurable and repeatable outcomes. Timeline: April – November 2015 Expected Key Outcomes: 1) Low Carbon Development Strategy (LCDS) for the SEZ Bitung 2) Detailed Impact and Cost Report on selected Low Carbon Measures (LCMs) 3) Implementation Roadmap
APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
Approach and Methodology Page 4
Ø Alignment with geographic, demographic and economic background of the LCMT target area
Ø Alignment with the existing policy and institutional framework on (i) national, (ii) provincial, (iii) city and (iv) SEZ Bitung level
Ø Close communication and frequent consultation with key project stakeholders (more than 20 consultations, seminars and technical trainings with the national, provincial and city level government)
Ø Inclusion of Ms. Jacoba Malingkas Roeroe from the Provincial Development Planning Agency into the Consultant’s project team to ensure local ownership and local coordination
Ø Approach built on international best practices and on the best
professional understanding of the Consultant’s team
APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
Project Target Area – Special Economic Zone (SEZ) Bitung Page 5
Phase 2: 2020-2021
• Improvement and expansion of basic infrastructure and support facilities • Expansion of residential, commercial and industry development
Phase 1: 2017 – 2019 • Basic Infrastructure Development • First residential, commercial and industrial activities
Phase 3: 2022-2023
• Development of education and training facilities
Phase 4: 2024-2028 • Development of recreational areas • Further expansion of residential and industrial areas
Phase 5: 2029-2031
• Further expansion of industrial areas
APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
Key Result 1 - High Level Vision Statement for SEZ Bitung Page 6
The Special Economic Zone of Bitung will become a national and global model for sustainable, low carbon urban and industrial planning, and will contribute to the national goal of reducing GHG emissions by 26% by 2020 (29% by 2030) compared to a Business-as-Usual Scenario. This vision will be implemented developing the Low Carbon Model Town strategy along the following four axes: Ø Ensure alignment with existing local and national development policies, regulatory frameworks
and institutional set-ups; Ø Reduce energy consumption through the use of clean, green energy generation and more
energy efficient technologies and practices; Ø Ensure an efficient and environmentally balanced management of resources through the
utilisation of the best available low carbon technologies for industry, commercial and residential areas, for solid waste and wastewater management, for forestry and land use, and for transportation;
Ø Apply an accurate, transparent and functional monitoring, reporting and verification system
(MRV) of the GHG emissions and additional sustainable development impacts.
APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
Key Result 2 – LCMT BAU Scenario (yearly basis) Page 7
Business As Usual Scenario: Estimates the increase in GHG emissions derived from the current development Masterplan of the SEZ Bitung (without considering the low carbon development strategy and related low carbon measures). Key Finding: Energy sector (Energy Generation; and Energy Use in the Industry, Commercial and Residential sub-sectors) will contribute more than 90% to the total GHG Emissions of the SEZ Bitung.
APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
Key Result 3 – Selected Low Carbon Measures (LCMs) Page 8
LCMT%Target%Sectors% Sub%Sector% Type/%Technology%of%LCM% Specific%LCM%
Energy%
Energy'Generation'
Utilisation'of'Clean'Energy' 1.'Utilisation'of'Geothermal'Energy'
Grid'Solar'Energy'Generation' 2.'Use'of'Photo'Voltaic'(PV)'panels'on'buildings'
WasteBtoBEnergy'Generation' 3.'Methane'capture'and'anaerobic'digestion'(AD)'system'for'Solid'Waste'and'Wastewater'4.'Thermal'energy'generation'from'agricultural'waste'
Biomass'Thermal'Energy'Generation'
Industry'EE'in'Equipment,'Appliances,'Building'Design'and'Industry'Processes'&'Product'Use'(IPPU)'
5.'Comprehensive'EE'Program'for'the'Industry'Buildings,'Appliances'and'IPPU'
Commercial' EE'in'Equipment,'Appliances'&'Building'Design'
6.'Comprehensive'EE'Program'for'Residential'and'Commercial'Buildings'&'Appliances'Residential'
Residential' Energy'Efficiency'in'Equipment'and'Appliances'
•' Commercial'Air'Conditioning''&'Refrigeration'(AC&R)'
•' Lighting'Transportation% Shift'and'
avoid'7.'Bus'Rapid'Transit'(BRT)'8.'NonBMotorised'Transport'(NMT)'and'TransitBOrientedBDevelopment'(TOD)'
AFOLU%%Land'Use'and'Urban'Greening'
9.'Urban'Forestry'and'Urban'Greening'
Waste%Solid'Waste'and'wastewater'
Solid'Waste'Management'10.'Integrated'Solid'Waste'Management'System'and'3R'strategies'
'
APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
Key Result 4 – LCMT Mitigation Scenario Page 9
-22%
LCMT GHG ER will potentially contribute 13% to the latest national GHG ER target set for North Sulawesi in Indonesia’s Intended Nationally Determined Contribution (INDC).
Mitigation Scenario: provides an estimation of the future GHG emissions levels in the context of the proposed Low Carbon Measures for the SEZ Bitung. Key Finding: GHG emissions can be reduced up to 22% from the SEZ Bitung Business-As-Usual scenario.
APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
Key Result 5 – Contribution to National Policy Objectives and Achievement of Sustainable Development Benefits
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Overall LCMT SD Impacts Impact Domain Specific Impact
Environment Reduction in Air, Water and Soil Pollution Noise Reduction
Social Livelihood Health Time Savings
Growth & Development
Access to Clean and Sustainable Energy Capacity Enhancement Energy Security Education
Economic Income Generation Expenditure Reduction Job Creation
Overall LCMT Contribution to National Policy Objectives Sector Contribution
Energy
Contribution to Indonesia’s National and Provincial Action Plan to reduce GHG Emissions (INDC & RAN/RAD-GRK) Contribution to the National Energy Strategy (KEN)’s objective to increase the share of RE in the national energy mix Contribution to the National Energy Conservation Development Plan (RIKEN)’s objective to achieve Indonesia’s energy saving potential and reduced energy elasticity through energy efficiency and conservation measures.
Transportation Contribution to the national sustainable transport and urban mobility objectives AFOLU Contribution to the national objective of achieving a green and sustainable city environment Waste Contribution to the National Waste Management Strategy
APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
LCMT Investment Requirements Page 11
Total LCMT Investment Requirements
Capital Investment for LCM implementation ~ $33,400,000
Operation & Management costs for LCDS &
LCM implementation ~ $13,800,000
Total ~ $47,200,000
APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
Way Forward – Need for further Technical Assistance Page 12
Building the enabling framework for LCMT Implementation
EA = Enabling Activity
# Activity Budget Timeline EA1 Streamline LCDS into SEZ Masterplan 70,000 USD S1 2016 EA2 Conduct National & Sub-national Dialogue 230,000 USD S1 2016 EA3 Conduct Institutional Improvements 150,000 USD S1 2016 EA4 Implement Policy Recommendations 70,000 USD S1 2016 EA5 Conduct Detailed Capacity Needs Assessment (CNA) 130,000 USD S2 2016 EA6 Set up MRV and M&E system 350,000 USD 2016-2017 EA7 Capacity Building Programme:
1. Technical (including MRV) 2. Institutional 3. Regulatory 4. Financial
350,000 USD 125,000 USD 50,000 USD 50,000 USD
125,000 USD
2016-2017
EA8 Initiate Financial Support Programme 150,000 USD 2016-2017 EA9 Initiate PPP Support Programme 250,000 USD EA10 Establish Project Management Unit (PMU) 750,000 USD 2016-2017
TOTAL 2,500,000 USD
APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
Way Forward Page 13
Contribution from the Local Government to support LCMT Implementation
1) Integration of the LCMT strategy into the SEZ Development Master Plan
2) Support of the LCMT implementation through adaptation/development of required policies and regulations
3) Provision of in-kind contributions to Enabling Activities (EAs) above
APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
Way Forward Page 14
Discussion between APEC and the Government of Indonesia on further support for LCMT implementation for the SEZ Bitung during APEC Task Force Group B event in Manado on 29 November 2015.
APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward Page 15
Mr. Sanny Parengkuan Regional Secretary for Development and Economics of the Province North Sulawesi, Indonesia
“I would like to express my gratitude to APEC for making this project happen, and to South Pole Group for their work in conducting this Feasibility Study for the SEZ Bitung. I look forward to mainstream this Low Carbon Strategy into the SEZ Bitung Masterplan, and to develop the proposed Low Carbon Measures, and I hope that the international community can further support us by providing the required Technical Assistance for its implementation.”
APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
Contact
South Pole Group Global Sustainability Solutions Graha Iskandarsya 2nd Floor Jl. Iskandarsyah 66C 12160 Jakarta Indonesia Phone: +62 217207 567 www.thesouthpolegroup.com Please send your feedback to: Paul Butarbutar, Country Manager Indonesia p.butarbutar@thesouthpolegroup.com
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APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
Who we are
We offer comprehensive sustainability solutions and services. We enable our customers to create value from sustainability-related activities. Our staff of 110 employees worldwide are passionate about fighting climate change.
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APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
Developing solutions worldwide Page 19
APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
Impact
Created 270+ projects
Saved 50 million tonnes of CO2
Measured USD 30 bn+ of investments
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APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
Impact
Created almost 20,000 jobs
Saved 17,000+ hectares of forest
Enabled 35,000 GWh of renewable energy
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APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
We are the experts in sustainability Page 22
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APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
South Pole Group references Page 23
Publ
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APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
Contacts
Headquarters Zurich Kimberly Gantner +41 43 501 35 50 k.gantner@ thesouthpolegroup.com
London Marco Magini +44 20 3586 1661 m.magini@ thesouthpolegroup.com
Stockholm Jens Olejak +46 8 410458 80 j.olejak@ thesouthpolegroup.com
Bangkok/Hanoi Santosh Singh +66 2 678 89 79 s.singh@ thesouthpolegroup.com
Beijing Yang Xuan +86 10 84 54 99 53 x.yang@ thesouthpolegroup.com
Hong Kong Caspar Chiquet +86 10 84 54 99 53 c.chiquet@ thesouthpolegroup.com
Addis Ababa Lars Osterwalder +251 91 279 58 17 l.osterwalder@ thesouthpolegroup.com
Melbourne Freddy Sharpe +61 402 9689 813 freddy.sharpe@ climatefriendly.com
Sydney Freddy Sharpe +61 2 9356 3600 freddy.sharpe@ climatefriendly.com
Medellín Christian Dannecker +57 4 352 4428 c.dannecker@ thesouthpolegroup.com
Mexico City Ana Terroba +52 55 55 31 90 13 a.terroba@ thesouthpolegroup.com
Jakarta Paul Butarbutar +62 21 720 75 67 p.butarbutar@ thesouthpolegroup.com
New Delhi K. Kartick +91 956 0189 991 k.kartick@ thesouthpolegroup.com
Europe & North America
Asia Africa
Australia Latin America
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San Francisco Stephen Scofield +1 415 351 84 67 s.scofield@ thesouthpolegroup.com
APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
Overall BAU and Mitigation Scenario in Numbers
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Additional Information
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
BAU Scenario 2,997 83,884 16,666 267,004 382,002 513,766 662,291 842,414 1,054,017 1,297,110 1,571,699 1,877,793 2,211,589 2,573,127 2,962,413
OVERALL GHG ER 1,607 13,451 27,619 44,292 62,336 81,964 103,195 128,395 193,081 260,567 332,141 406,644 483,765 564,742 648,504
Mitigation Scenario 26,390 70,433 140,047 222,711 319,665 431,802 559,096 714,018 860,935 1,036,54 1,239,557 1,471,148 1,727,823 2,008,384 2,313,909
GHG ER ratio 5.7% 16.0% 16.5% 16.6% 16.3% 16.0% 15.6% 15.2% 18.3% 20.1% 21.1% 21.7% 21.9% 21.9% 21.9%
APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward
Potential Funding Sources
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Topic-Sector Financial Sources in Indonesia
Low Carbon Cities (i.e. multi-sector) APEC, AFD, WB, ADB, EU, GCF
Energy Generation (Renewable Energy) WB, ADB, USAID, JICA, AFD, UNDP-GEF, GCF, private
Energy End-Use (Energy Efficiency) WB, ADB, USAID, JICA, GCF, private
Transport WB, ADB, IDB, AusAID, JICA, AFD, GCF
AFOLU WB, ADB, GEF, USAID, GCF Waste WB, ADB, GCF
All sources listed have an ongoing portfolio of low carbon activities currently being finance in Indonesia in the sectors and topics of relevance.
Additional Information