Current Status of CDM Implementation in Indonesia

Deputy Assistant for Climate Change Impact Control

Ministry of Environment Republic of Indonesia

Jakarta, 19 September 2006

Background

Ratification of the UNFCCC (act no. 6/1994)Indonesia committed to participate in the global climate change mitigation and adaptation programmes

Ratification of the Kyoto Protocol (act no. 17/2004)

Opportunities for Indonesia to implement CDM

1. Indonesia’s DNA on CDMKomisi Nasional Mekanisme Pembangunan Bersih (Nat’l Committee on CDM)Established in July 2005 by the Minister of Environment Decree no. 206/2005Tasks:

Provide approval evaluate CDM project proposal according to criteria and indicators of sustainable developmentMonitoring and evaluation of project

2. Ministry of Forestry Decree 14/2004 on A/R CDM3. Free of Tax of import for environmental sound equipments

Policy on CDM

Regulatory (mandatory)Granting recommendation to CDM project proposals that pass Indonesia’s sustainable development criteriaTracking and annual reporting to the UNFCCC Secretariat

Promotional (optional)Facilitating communication between investors and project proponents as well as other stakeholdersFacilitating capacity building for Indonesian institutions to beable to propose and implement CDM projectsProviding information on available CERs and/or CERspotential to potential buyers

Functions

Structure

CDM National Board

Secretariat

Expert Group

Technical Committee

Stakeholder Forum

Indonesia’s DNA on CDM

Representatives from nine national government agencies:

Ministry of EnvironmentMinistry of Energy and Mineral ResourcesMinistry of ForestryMinistry of IndustryMinistry of Foreign AffairMinistry of Home AffairMinistry of TransportationMinistry of AgricultureNational Development Planning Agency

Opportunities and Challenges

National Strategy Study of CDM on Energy Sector (2001)

CDM potential volume: 24 Mt CO2 annuallyMitigation options: geothermal energy, utilization of flared gas, fuel switching, cogeneration, heating systems, etc

Opportunities and Challenges

National Strategy Study of CDM on Forestry Sector (2003)

A/R CDM potential volume: 23 Mt CO2 annuallyAvailable land for A/R CDM: 19 Mha

Strategy on CDM

Equal advantages between developing countries (host) and the Annex I countriesIn line with and supported the Indonesian sustainable development strategyInvolving private local partnerUse of appropriate technology, development of technical standards, and capacity buildingSupporting government related policies, institutional development and awareness raisingNo priority sectorFree of charges for evaluation at Indonesia DNA

Strategy

Campaign for Public Awareness Public Consultation/Training/SeminarInternational Bilateral (MOU) :NetherlandsDenmarkAustriaCanadaJBICIGESIn progress with Republic of Korea

Criteria and Indicators forSustainable Development

L. Environmental Sustainability

The Scope of evaluation is the area within the project’s ecological border affected directly by the project activities.

L.I. Environmental sustainability by practicing natural resource conservation and diversification

L.1.1. Maintain sustainability of local ecological functionsL.1.2. Not exceeding the threshold of existing national, as well as local, environmental standards (not causing air, water and/or soil pollution)

L. Environmental Sustainability

L.I.3. Maintaining genetic, species, and ecosystem biodiversity and not permitting any genetic pollutionL.I.4. Complying with existing land use planning

L.2. Local community health and safetyL.2.1. Not imposing any health riskL.2.2. Complying with occupational health and safety regulation L.2.3. There is a documented procedure of adequate actions to be taken in order to prevent and manage possible accidents

E. Economic Sustainability

The scope of evaluation is within the district (city)’s administrative border. If the project’s impacts are cross-district(city), the scope extends to cover all affected districts (cities)

E.1. Local community welfare E.1.1. Not lowering local community’s income

E. Economic Sustainability

E.1.2. There are adequate measures to overcome the possible impact of lowered income of community members E.1.3. Not lowering local public servicesE.1.4. An agreement among conflicting parties is reached, conforming to existing regulation, dealing with any lay-off problems

S. Social Sustainability

The scope of evaluation is within the district (city)’s administrative border. If the project’s impacts are cross-district(city), the scope extends to cover all affected districts (cities)

S.1. Local community participation in the projectS.1.1. Local community has been consulted S.1.2. Comments and complaints from local communities are taken into consideration and responded to

T. Technology Sustainability

The scope of evaluation within national borderT.I. Technology transfer

T.1.1. Not causing dependencies on foreign parties in knowledge and appliance operation (transfer of know-how) T.1.2. Not using experimental or obsolete technologies T.1.3. Enhancing the capacity and utilisation of local technology

Approved Projects

DNA Approval218.370 tCO2eq(7 years)

Lampung Bekri Biogas Project - PT EcoSecurities Indonesia8.

DNA Approval4.401.236 tCO2eq(7 years)

Darajat Unit III Geothermal Project- PT Chevron Geothermal, Ltd

- Chevron Limited

7.

Registered on CDM-EB

1.16*106 tCO2eq(7 years)

Methane Capture and Combustion from Swine Manure Treatment Project at PT Indotirta Suaka Bulan Farm in Indonesia

- PT Indotirta Suaka- Mitsui Co. Ltd

6.

Registered on CDM-EB

561.160 tCO2eq(10 years)

MSS Biomass 9.7 MWe Condensing Steam Turbine

PT Murini Sam Sam5.

Registered on CDM-EB

463.224 tCO2eq (7 years)

MNA Biomass 9.7 MWe Condensing Steam Turbine

PT Multimas Nabati Asahan4.

Registration process1.010.894 tCO2eq(7 years)

Indocement Alternative Fuels Project- PT Indocement- World Bank PCF

3.

Registration process4.697.497 tCO2eq(10 years)

Indocement Blended Cement Project- PT Indocement- World Bank PCF

2.

Registered on CDM-EB

24.500 tCO2eq(7 years)

CDM Solar Cooker Project Aceh- PT Petromat Agrotech- Klimaschutz e.V.

1.

StatusExpected CER & Crediting PeriodProject NameProject ParticipantNo

Under evaluation at Indonesia DNA

733.246 tCO2eq(7 years)

PT Navigat Organic Energy Indonesia Integrated Solid Waste Management (GALFAD) Project in Bali

PT Navigat Organic Energy

Indonesia & Mitsubishi UFJ

Securities Co., Ltd

2.

Under evaluation at Indonesia DNA

423.790 tCO2eq(10 years)

Cook Stove Project Kupang 1

BPPT & ClimateInterchange AG

1.

Status Expected CERs &Crediting PeriodProject Name Project ParticipantNo

CDM Projects in the approval process at CDM Projects in the approval process at DNA IndonesiaDNA Indonesia

Thank YouThank You

Deputy Assistant forClimate Change Impact Control Phone. 021-8517164Fax. 021-85902521http://dna-cdm.menlh.go.idclimate@menlh.go.id