Info ICCC 5th ed.

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5th Edition - June 2014 Information Media of Indonesia Climate Change Center |5th Edition - June 2014 1 Green Transportation Fuel for Sustainable Long Term Economic Growth PREVIEW OF STUDY Crop to Energy on Degraded Land as a Step Toward Energy Independence, Carbon Sink Agriculture and Protection of REDD+ Designated Areas BACKGROUND The fuel subsidy apparently deters public consumer energy efficiency initiatives and, without policy that supports biofuel investment, there are risks for biofuel production. As seen in Figure 1, Indonesia’s fuel subsidy grew at a rate that was much faster than the growth of the government budget since 2009. In 2012, there were two important marks: 1. The percentage of total fuel subsidy from the total budget was higher than that in 2008 when the global price of crude oil reached US$ 150/barrel. 2. The subsidy for RON 88 gasoline has surpassed 50% of the total fuel subsidy, including subsidies for household use of kerosene and LPG. This is clearly alarming in terms of Indonesia’s growth capacity and also environmental sustainability. For bio-ethanol, GOI initiated a blending ratio mandate through Presidential Regulation No.5/2006. The Ministry of Energy and Mineral Resources (MEMR) issued a Regulation no.32/2008 with the details of bio-ethanol targets during the 2008-2025 bio-ethanol mandates. However, since 2010, the production of fuel grade bio-ethanol has been halted due to non-competitive domestic production costs. INSIGHTS FROM THE GLOBAL BIOFUEL TECHNOLOGY ROAD MAP TO DEVELOP BIO-ETHANOL PRODUCTION IN INDONESIA The global objective to adopt biofuel for transportation is to accelerate global development and uptake of key technologies to reach 50% CO 2 e GHG emission reductions by 2050 based on Business As Usual (BAU) 2005 reference levels 2 . To reach this target, IEA makes a projection that sustainably produced biofuels will supply 27% of all transportation fuel. 79.8 107.2 53.3 64.7 9.4 7.1 22.6 32.8 0 50 100 150 200 2011 2012 Elements of Fuel Subsidy RON 88, Premium Diesel Kerosene LPG (Rp. trillion, current prices) Figure 1. Allocation of Fuel Subsidy in GOI’s spending 1 Figure 2. Projection of global land requirement to meet ETP 2010 BLUE Map Scenario

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Page 1: Info ICCC 5th ed.

5th Edition - June 2014 Information Media of Indonesia Climate Change Center

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Green Transportation Fuel for Sustainable Long Term Economic Growth

PREVIEW OF STUDYCrop to Energy on Degraded Land as a Step Toward Energy Independence, Carbon Sink Agriculture and Protection of REDD+ Designated Areas

BACKGROUND

The fuel subsidy apparently deters public consumer energy efficiency initiatives and, without policy that supports biofuel investment, there are risks for biofuel production. As seen in Figure 1, Indonesia’s fuel subsidy grew at a rate that was much faster than the growth of the government budget since 2009. In 2012, there were two important marks:

1. The percentage of total fuel subsidy from the total budget was higher than that in 2008 when the global price of crude oil reached US$ 150/barrel.

2. The subsidy for RON 88 gasoline has surpassed 50% of the total fuel subsidy, including subsidies for household use of kerosene and LPG. This is clearly alarming in terms of Indonesia’s growth capacity and also environmental sustainability.

For bio-ethanol, GOI initiated a blending ratio mandate through Presidential Regulation No.5/2006. The Ministry of Energy and Mineral Resources (MEMR) issued a Regulation no.32/2008 with the details of bio-ethanol targets during the 2008-2025 bio-ethanol mandates. However, since 2010, the production of fuel grade bio-ethanol has been halted due to non-competitive domestic production costs.

INSIGHTS FROM THE GLOBAL BIOFUEL TECHNOLOGY ROAD MAP TO DEVELOP BIO-ETHANOL PRODUCTION IN INDONESIA

The global objective to adopt biofuel for transportation is to accelerate global development and uptake of key technologies to reach 50% CO2e GHG emission reductions by 2050 based on Business As Usual (BAU) 2005 reference levels2. To reach this target, IEA makes a projection that sustainably produced biofuels will supply 27% of all transportation fuel.

79.8107.2

53.3

64.79.4

7.122.6

32.8

0

50

100

150

200

2011 2012

Elements of Fuel Subsidy

RON 88, Premium Diesel Kerosene LPG

(Rp. trillion, current prices)

Figure 1. Allocation of Fuel Subsidy in GOI’s spending1

Figure 2. Projection of global land requirement to meet ETP 2010 BLUE Map Scenario

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Established in October 2011 under the US-Indonesia Comprehensive Partnership, the Indonesia Climate Change Center (ICCC) is a platform of network that reaches scientist communities, international organizations, Indonesia ministries, and academics to encourage robust science-policy linkages in support of actions to deal with issues on

climate change in Indonesia. Info ICCC is a quarterly newsletter which serves information on issues and study result conducted by ICCC. ICCC encourages free dissemination of information available on this newsletter for non-commercial purpose with acknowledgement of Info ICCC as the source.

Steering Committee: Rachmat Witoelar, Agus Purnomo, Amanda Katili Niode, Murni Titi Resdiana, Farhan Helmy, National Council on Climate Change (DNPI). Editor in Chief: Arfiana Khairunnisa, Indonesia Climate Change Center (ICCC). Contributors: Artissa Panjaitan, Dadang Hilman, Eli Nur Nirmala Sari, Harityas Wiyoga, Ayu Anugrah Ramanadia, Indonesia Climate Change Center (ICCC).

Feedback and suggestion can be sent to email [email protected] or address Gd. Badan Pengkajian dan Penerapan Teknologi (BPPT), 16th Fl. Jl. M.H.Thamrin 8, Jakarta 10340. Further information of ICCC is available on www.ICCC-network.net.

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As a consequence of the above targets3, IEA estimates the land requirements would reach a net increase of 70 million ha by 2050 as presented in Figure 2. By net increase, IEA is projecting a shrinkage of crop area in developed regions of up to 50 million ha while there will be an increase of 120 million ha in developing countries. This projection shows the potential of international biofuel trade and rural economic development. Using its massive Degraded Land (DL) potential, and by having impartial resolutions to settle land claim conflicts, Indonesia may have an opportunity to produce 20% of the biofuel on the global biofuel market4 for its domestic demand and become a biofuel exporting country.

Another important element learnt from the Global Biofuel Scenario is the projection of sugar cane ethanol as the cheapest fuel (per liter of gasoline equivalent5 “lge” in retail price after 2015) both in low and high fossil-fuel cost scenarios after 2020. It also suggests that the retail price of Cellulosic Ethanol (CE), in a high-cost scenario, will be just within a USD 0.10 range from petroleum gasoline after 2030.

Despite the fact that sugar cane will have the cheapest cost compared to other fuels until 2050, CE will have an advantage over sugar cane ethanol in terms of its range of feedstock sources. CE can be achievable by many countries6. Diversity of CE feedstock will help reduce the volatility of feedstock cost and allow utilization of wood-based crops from production forest areas in almost all Indonesia’s provinces.

BENEFITS AND CHALLENGES OF DEVELOPING THE BIO-ETHANOL INDUSTRY IN INDONESIA

a. Benefits

Reducing GHG emissions from the transportation sector will need efficiency improvements and conversion to low emission fuels, such as biofuel and natural gas. However, biofuels are now still more expensive then fossil fuels (per energy content) despite the promising trend of cheaper biofuel prices in the mid- and long-term. Can Indonesia learn from the success of other countries in taking these opportunities?

Indonesia is facing a situation of fast growing gasoline imports and a downward trend of domestic oil supply. In 2012, Indonesia had a IDR 190 trillion budget deficit (Figure 3) to support the budget of IDR 212 trillion subsidy in oil and gas products (mostly transportation fuel) and IDR 135 trillion in electricity subsidy. As the result of growth in transportation fuel and electricity due to subsidies, in 2012 Indonesia had a US$ 5.6 billion trade deficit and fast growing GHG emissions. By September 2013, with the accelerating demand of gasoline, oil and gas trade deficits, it worsened to US$ 9.7 billion. The subsidy actually destroyed the transportation bio-fuel opportunity, causing the country’s bio-ethanol blending mandates to falter and also made Indonesia lose the opportunity to develop its rural economy.

Figure 3. Biofuel solution to meet Indonesia Transportation demand and accelerate economic growth

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In most of the cases, achieving bio-ethanol goals are accompanied by minimal changes to vehicle stocks and distribution infrastructure. And, in the cases of rural development, biofuel adoption on DL can also help avoid deforestation or forest encroachment.

b. Challenges

During our Focus Group Discussions (FGD), prospective bio-ethanol players stated their belief that for an effective biofuel program to start, GOI needs to develop a regulation that is at the level of a Law which has legal sanctions to enforce implementation and also regulate all key business-value chains of the bio-ethanol industry in a long-term perspective7. Figure 4 shows the complicated institutional coordination that must be simplified to promote bio-ethanol industry.

To select the potential crops for available DL, we suggest selection criteria of agro-climatic interests and processing technology that minimize the risks. For the first-generation technology, the potential crops to grow on DL as feedstock for bio-ethanol are sugar cane, cassava, sweet sorghum, corn and sago-palm. There are currently various technologies in commercial and development stages (Figure-5). The global bio-fuel industry is still commercially using the first generation technology but is about to launch the second generation. Government will need to support bio-ethanol (bio-fuel) research, design and development to become more independent and profitable in domestic and international trade.

Under the bio-ethanol mandatory blending ratio, Indonesia will

Figure 4.Comprehensive legal & economic system to promote bio-ethanol for GHG abatement

Figure 5. Commercialization Status of Main Bio-fuel Technologies8

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require at least 10 million kiloliters of bio-ethanol by 2025. This study estimates the land requirement using the first generation technology for sugarcane as feedstock. We project a minimum of 1.5 million ha of DL areas, suitable for sugarcane agro-climate conditions, will be required to supply the mandated bioethanol consumption, as shown on Figure–6.

To minimize competition between crops for food and energy, car engine manufacturers should produce flexible gasoline engines. By such a scheme, the balancing of optimum farmers’/growers’ income can be managed between the optimum price of sugar and bio-ethanol. Whenever the price of sugar drops, for instance, producers can shift more of the final product into bio-ethanol. This scheme will also allow bio-ethanol producers to manage the blending ratio in response to variations of growers’ output but with a target of minimum blending ratio.

The ICCC team investigates which DL areas are to be considered as the core for plantation of bio-ethanol crops. As such, DL in Convertible Production Forest (CPF) is the more likely area prioritized as plantations for bio-ethanol crops. The nearby Other Land Use areas (owned by potential local growers) will be the supporting zones and used as a scheme to distribute economic value to rural/native inhabitants.

A GIS map screening using 6 criteria depicted in Figure 6, indicates how the 1.5 million ha of land can be made available. However, the top 6 Provinces do not have a history of sugarcane plantations and have a relatively low density of population. Therefore, GOI needs to develop standard procedures to provide land (DL areas) for bio-ethanol crops as soon as possible. Land availability is the fundamental element to ensure the quantity of feedstock with cost efficient supply for the 2025-blending mandate.

PRICING THE PRODUCTS

Indonesia’s fuel grade bio-ethanol is still more expensive than the same products from other producing countries. In other countries, feedstock cost represents about 60% of the total ethanol production cost. To have a similar cost structure,

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land ownership is essential. Land ownership allows control of feedstock cost and supply efficiency.

Since the majority of Indonesian bio-ethanol producers currently do not grow their own feedstock, their production cost fluctuates significantly due to competition. For feedstock from sugarcane, competition occurs with the protected sugar market. In addition, the gasoline price has a variable subsidy above the price peg. Therefore, GOI needs to realign the goal of using bio-ethanol for energy independence by securing land availability, establishing an appropriate retail fuel/energy price, and targeting GHG abatement.

Some possible ways to reduce production costs for bio-ethanol producers include maximizing the co-product market solutions, improving the economics of biomass conversion, and GOI

support in infrastructure development.

In 2010, MEMR set the index for the bio-ethanol price (to be blended with gasoline) at 105% of Argus FOB Thailand while Indonesian bio-ethanol producers demanded 132% of Argus FOB Thailand. GOI have failed until now to come to an agreement with the producers. If the 32% difference from Argus price had been allowed, it would have certainly made Indonesian market a target by overseas producers.

The failure of bio-ethanol producers to meet 105% of Argus Thailand price indicates a weakness in production cost competitiveness. Our analysis infers that the weakness occurred due to competition with food supplies and producers did not grow their own feedstock.

SUGGESTION & PLANS FOR IMPLEMENTATION

The proof of bio-ethanol industry attractiveness for Indonesia energy independence is in implemented business plans. The best indication of whether this idea will be implemented is GOI policies that support land availability and infrastructure development combined with a favorable policy to achieve energy independence. Effective GOI policies will be followed by application for investment licenses. As the result of our site visits, we would suggest prioritizing the potentials in Central Kalimantan province for the start of sugarcane bio-ethanol industry9. (Artissa Panjaitan)

1Source: Statistics Indonesia (Badan Pusat Statistik), Ministry of Finance.2Energy Technology Perspectives (ETP) 2010 BLUE Map Scenario, IEA.3By using high-yield crops, improvements of processing and land-use efficiency as well as use of organic residues.

4Projected areas for global cane and cellulosic (1st and 2nd Generation) bio-ethanol at 42 Mha and bio-diesel at 30 Mha. Therefore, if Indonesia strategically plans to supply 20% of these biofuels, there need to be about 15 Mha land.

5Lower Heating Value (LHV) of gasoline = 32,166 kJ/liter and LHV of ethanol = 21,100 kJ/liter. Energy content of Gasoline (LHV) = 1.52 Bio-ethanol (LHV).

6The cost of production in each country will differ by scale of plant capacity, feedstock costs and technology selection.

7Meeting the demand till 2050 and beyond.8Source: Modified from Bauen et al., 2009.9For sago-palm ethanol, Riau and Papua are the naturally suitabe. But care should be taken to minimize environmental impacts of harvesting and production.

Figure 6. Screening criteria to target DL area for sustainable energy crop plantation

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International Indonesia Peatland Conversation (IIPC) 2014

nternational Indonesia Peatland Conversation (IIPC) is an annual event that organized by the National Council on Climate Change (NCCC/DNPI) and Indonesia Climate Change Center

(ICCC) that brings together national and international peatland experts, representatives from non-governmental organizations, universities and decision makers from Indonesian ministries and institutions that handle peatland management. The aim of IIPC is to increase awareness and understanding about what Indonesia needs to undertake in achieving greenhouse gas emission (GHG) reduction from peatlands. The 2nd IIPC was held in Jakarta on February 11 and 12, 2014 at the Mandarin Hotel, attended by 56 participants from 39 different institutions, both domestic and abroad.

The objectives of 2nd IIPC were: 1) Figure out condition of peatland mapping in Indonesia; 2) Discuss and develop strategies to improve the transparency of data, resolve problems related to differences in methodology of peatland mapping and completeness of data availability to improve the accuracy of existing peatland maps; 3) Understand the unique needs to effectively estimate emissions from degraded peatland or from peat fires; 4) Determine the arrangement between the Indonesian governmental agencies required to ensure the ability to adequately estimate the GHG emissions; and 5) Clarify the existing data and data needed to support estimation of GHG accurately that meets international standards.

In 2nd IIPC, in-depth discussions conducted to exchange views on details about two significant topics, namely, peatland mapping and greenhouse gas emissions (GHG) on peatland. On the first topic, participants discussed to dig deeper into the existing gaps related to data transparency, differences in methodology of peatland mapping and layers of additional data that needs to be developed to support the Indonesian government in making decisions on an effective peatland management.

In the discussion related to the GHG emissions, participants engaged in in-depth discussion on estimating emissions from peat fires and wasted peatland, how to increase the capacity of the Indonesian government to estimate emissions from peat fires effectively, whatever is needed to estimate emissions without depending merely on the hotspots data, and the existing emission factor (EF) and activity data (AD) that Indonesia already has, and any additional data needed to achieve the ‘tier’

of a higher GHG inventory.

The two-day discussions of 2nd IIPC resulted following formulations:

1. It is important to improve data quality, increase access and standardization of methodologies to support the Indonesian National Standard (SNI) of Peatland Mapping 1:50,000;

2. It is necessary to focus the agenda on the verification activities and groundtruthing to improve the accuracy of existing peatland maps;

3. It is important to identify layer of data needed for peatland mapping;

4. Encourage ministries to work together in order to minimize duplication of activities and competitions related to the results of activities; and

5. All activities held related to peatland should involve local scale as a national-scale approach.

In response to the formulas above, ICCC will follow up with the following agenda; 1) Continue cooperation and coordination with the Geospatial Information Agency (BIG) with a peatland mapping team; 2) ICCC is committed to be a model in sharing the data openly, conduct strict reviews with a science-based high standards in providing inputs to the policy makers; 3) Make an inventory of GHG with inter-agency groups associated to peat issues, and hold discussions to produce recommendations related to structuring institutions; and 4) ICCC will facilitate dialogues related to peat issues to support science-based policies. (Eli Nur Nirmala Sari)

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Figure 1. 2nd IIPC participants from national and international peatland experts, representatives from non-governmental organizations, universities and decision makers from Indonesian ministries and institutions that handle peatland management

Figure 2. Discussion session at IIPC 2014

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orest fires, including peat fires, in Riau and Jambi provinces that occurred since February 2014, have been widespread and in the spotlight of several national and international

media recently. Some media tried to analyze that the fire was conducted by corporations. Others highlighted on the mitigation and the need of radical breakthroughs particularly on law enforcement aspect given forest fires have occurred every year. Certain media even published who should be the responsible parties.

How’s about the role of science in the issue and how to overcome it completely and thoroughly, not just in terms of the domestic and regional but also global issues. The Indonesia Climate Change Center (ICCC) as an institution that focuses on bridging science to policy recommendations, has participated in solving this annual problems, particularly in Sumatra and Kalimantan.

In general, the source of uncertainties in estimating emissions and absorption in organic land are: 1) uncertainty in land use and management activities and environmental data (IPCC 2013 Supplement to the 2006 Guidelines: Wetland). While the high uncertainty in the estimation of GHG emissions from peat fires caused by several things, including: shortage of necessary data; lack knowledge and information regarding fire behavior that makes it difficult to get accurate information and data about the burned area and emission factors.

Given the complexity and high uncertainty on forest and land fires, especially peatland, so in the early stages ICCC is reviewing the role of some technologies of satellite data in determining the burned area and calculating the GHG emissions and particulates through an activity called Pilot Study on VIIRS Nightfire (VNF) Estimation of Emissions from the June 2013 Sumatra fires.

This activity is divided into two phases, first, looking back at the past incidents and focusing on the fires occurred in 2013 in Riau, Sumatra. This activity will be completed in June 2014, and second, only focusing on the 2014 fire season.

In more detail, the purposes of this activity are, first, to modify the existing fire emission model to be appropriate to the enriched information content for the evening fire products, such as: temperature, sources area, radiation heat.

Second, to validate the VNF detection through comparison with other satellite products and the combination of high-resolution satellite data and field surveys. This activity will be carried out either in

Efforts on Handling Complexity in Estimating Emissions from Peat Fires

phase-1 and phase-2.

Third, to evaluate the usefulness of the night Landsat data for detection and characterization of peat fires. This activity will be carried out in phase-2.

Fourth, to produce a set of emission estimation (GHG and other gases). And finally, the last purpose is to develop modeling of emissions for 2014 fire season for all regions in Indonesia.

In contrast to forest fires, peat fires are a mixture of flaming and smoldering which can continue in the depth of peatland that is not waterlogged. If we look at Figure 1, 600K (or approximately 326.85° C) is considered as break point between flaming (above 600 K) and smoldering (below 600 K). Emissions of flaming are very different from the emissions of smoldering in peat fires. Satellite detection works well for flaming detection in peat fires.

Since GHG emission has been already considered as one of the main causes of climate change and now becoming a global issue under the control of the UNFCCC, then there is no treatment option except to consider its issues development and regulatory. On the one hand we need to follow the rules or the current technical guide, on the other hand we can take advantage of the opportunities under the existing regulations to encourage for more comprehensive treatment, such as a chance to be handled through NAMAs-Nationally Appropriate Mitigation Actions. (Dadang Hilman)

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Figure 1. The two curved lines mark the detection limits of VNF (Viirs Nighfire) in terms of temperature and source area for the two spectral bands used in the detection of hot spot pixels. Gas flares burn at about twice the temperature of biomass burning. As the temperature of the source declines, larger source areas are required to generate a detectable radiance. Note the detection of smoldering fires, with temperatures under 600 K

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ICCC Coffee Morning on Climate Change

The New Government Advised to Focus on Rehabilitation of Degraded Forest and Peatland

The Indonesia Climate Change Center (ICCC) through the Communication Unit facilitates a dialogue titled ICCC Coffee Morning on Climate Change which is a regular dialogue event that is aimed to communicate recent issues related ICCC’s activities on peatland and peatland mapping, low emission development strategies, climate resilience, and MRV (measuring, reporting and verification) to address policy development framework on climate change in Indonesia. This article summarizes the 7th ICCC Coffee Morning on Climate Change titled Leadership and Engagement in Conservation and Sustainable Development of the Future Indonesia on Thursday, June 5, 2014.

The coming new government is expected to be more focus in dealing with rehabilitation of degraded forest and peatland considering the huge potential that forests and especially peatland have in storing carbon emissions. Appropriate handling can accelerate efforts to achieve Indonesia’s target in reducing carbon emissions to 26% by 2020.

One of recommended efforts is spatial planning policy, which currently is uncoordinated given many institutions and authorities involve. In Jakarta alone, for instance, at least seven institutions deal with spatial planning. Thereunto, local governments which are under the decentralization policy can issue local regulations that sometimes are overlapping with the national policy.

‘’This has to be a priority (of the new government),’’ said Agus Purnomo, the Head Secretariat of the National Council on Climate Change (NCCC) and Special Advisor to the President on Climate Change.

Besides Agus, the discussion themed Leadership and Engagement in Conservation and Sustainable Development of the Future Indonesia also presented Andrew Steer, President and CEO of the World Resources Institute, Satya Widya Yudha Chairman of Green Economy Caucus at the House of Representative, Republic of Indonesia, and Eli Nur Nirmala Sari, ICCC’s Peatland and Peatland Mapping Cluster Coordinator.

Data from the Forestry Ministry shows Indonesia has around 120 million hectares of tropical forest every year around 1.18 million hectares are degraded due to among others forest fires, industrial plantation and mining. Deforestation and changes in land use, including peatland, resulted around 60% of total emission in Indonesia.

‘’60% of carbon is stored in peat, therefore, efforts on emission reduction should be focused on peatland,’’ Agus said.

Other recommendations advised to the coming government are among others forest and peat moratorium policy, deforestation and peatland management.

Eli Nur Nirmala Sari said ICCC has started a study on sustainable peatland management across sectors including forestry, plantation and agriculture which involving peat scientists, universities and related institutions. The result of study will give information which helps the Indonesian next government in developing peatland management.

‘’It is called Indonesia Peatland Outlook 2014 and to be issued by the end of this month,’’ she said.

Figure 1. Satya Widya Yudha presented legal reform to support the geen growth of Indonesia

Figure 2. Eli Nur Nirmala Sari presented leadership and engagement on sustainable peatland management

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Estimation of greenhouse gas (GHG) emissions from peat fires is a relatively new issue in Indonesia and its contribution total national emission was significant. A moderate estimate on total GHG emissions from LUCF-Land Use Change and Forestry done by DNPI (2009) in 2005 reached 1,880,000 Gg CO2-e where about 55% was from peat emissions.

Responding to this situation, the Indonesia Climate Change Center (ICCC) through Measurement, Reporting and Verification (MRV) Cluster is developing a new initiative on methodology development on GHG emissions estimation from peat fires in order to support MRV system development that is currently being developed by the Government of Indonesia. For 4 days, from 6-9 May 2014 in Pekanbaru, the cluster conducted a training workshop on Application of IPCC Methodology on GHGs Emissions Estimation for Peat Fires from Recently Burned Area in Pekanbaru.

The training workshop concluded and recommended several things. One of conclusions is a coordinator agency to support Indonesia’s performance in addressing the issue is urgently needed.

“Peatland fire is a major source of Indonesia’s total greenhouse gas (GHG) emissions however there is a little empirical data to support the position. Consequently this lack of data limits

A Coordinator Agency on Peat Fires in Need Indonesia’s ability to progress beyond IPCC Tier 1 capabilities for REDD+ MRV activities which requires accurate and timely information, therefore the coordinator agency is needed,” explained Dadang Hilman, ICCC MRV Cluster Coordinator.

The other conclusions is Indonesia to achieve IPCC Tier capabilities requires not only the identification of responsible agencies for making and managing data but also identifying and prioritizing research and development (R&D) needs. Development of R&D capabilities needs to involve a collaborative partnership between Indonesian ministries, academics, and R&D institutions with their international cooperators.

However, until today Indonesia has no single agency assigned to be responsible to do so. Therefore it is urgent that a consensus should be developed among key institutions – Ministry of Agriculture, Forestry, Environment and LAPAN – to define the most relevant institution to become a coordinating agency and to support the performance.

The National Council on Climate Change (NCCC/DNPI), with technical assistance by ICCC, is a possible institution to take lead to conduct further discussion on how this contribution could be made and to be discussed with relevant national experts as well as key institutions. (Arfiana Khairunnisa)

International Negotiations

Andrew Steer said Indonesia has an important role in the world in terms of its economic power as well as commitment in reducing emission, therefore, the country should play an active role in the international negotiations on the climate change such as COP.

‘’In the past 10 years Indonesia is growing five times faster than any other countries. Indonesia must play a leading role in Paris negotiations,’’ he said referring to the United Nations Climate Change Conference or COP-21 to be held in Paris, France in 2015.

Satya Widya Yudha said Indonesian legislators also seek to more actively participate in the global level. Some members of the parliament have launched the so called Green Economy Caucus Indonesia since 2013 in Bali.

The caucus which groups Indonesian legislators interested and response to sustainable development and climate change issues signed a Memorandum of Understanding with the GLOBE International network, an international organization comprising national parliamentarian from over 80 countries committed to

developing and overseeing the implementation of laws in pursuit of sustainable development.

ICCC Manager Farhan Helmy said leadership and engagement on sustainable development is translated into a broader perspective there is very clear relationship between policy directions, supporting related regulations, engagement of private and non-government entities and science as a basis for policy making process.

He emphasize that Indonesia is now in defining moment as the country is close to the new administration. ‘’Any backpedaling of policy will lead us towards an unsustainable economic path,” he said.

He asserted ICCC together with its strategic partners will be promoting the presidential candidates on the need of long-term green economy direction.

‘’ICCC will be facilitating dialog on climate change, energy, land use and forestry, and cities in the context of ongoing elections to save policy landscape towards green economy,’’ he said. (Arfiana Khairunnisa)

“Indonesia has an important role in the world in terms of its economic power as well as commitment in reducing emission, therefore, the country should play an active role in the international negotiations

on the climate change such as COP.

“(Andrew Streer)

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ICCC Public Lecture on Climate Change

Sharing Climate Change Knowledge for the Academics

The Indonesia Climate Change Center in cooperation with the Bandung Institute of Technology (ITB) organized a regular Public Lecture on Climate Change (PLCC) at ITB campus in Bandung. Since February to May 2014 three PLCC have been held. This article summarizes the events.

RENEWABLE ENERGY IN INDONESIA

Utilization of renewable energy in Indonesia is still very small despite of its huge potential. Policy and its implementation are considered as the main constrains. Inefficiency of the state budget for fuel subsidy amounted to 230 trillion per year or about 10 % of the budget indicating the need of a fundamental adjustment in energy policy itself.

‘’There should be a long-term policy which describes an economic transformation towards a green economy based on low carbon pathway with a high added economic values. The policy must be transparent and science-based,’’ said Rachmat Gobel, chairperson of the Indonesia Renewable Energy Society (METI) in a Public Lecture held at the Bandung Institute of Technology (ITB) on May 26, 2014.

The Public Lecture themed on the Renewable Energy also presented Artissa Panjaitan, ICCC’s Coordinator of Low Emission Development Strategy (LEDS) Cluster.

Indonesia has a very huge potential for renewable energy which can be used to improve the people’s welfare and at the same time reduce emission on the atmosphere where Indonesia is committed on it, Gobel said.

Quoting the National Council on Climate Change (DNPI)’s 2014 projection, a non-low carbon development will increase the greenhouse gas (GHG) level in 2020 to 2030 and 40% of the increase is contributed by energy sector, he said.

‘’Therefore, consistency in the policy to reduce emission to 26% by own and 40% with international support by 2020 must be continued and become foundation of the low-carbon

ICCC Activity

development policy,’’ he said.

Artissa Panjaitan showed ICCC study on the use of two technologies of ethanol from sugarcane and biogas from Taiwan grass as an alternative solution to meet energy needs especially for transportation and electricity in remote areas.

‘’Only 25% of Indonesia’s population of about 240 million still do not get electricity access after 70 years of Independence,’’ Panjaitan said.

Even, he added, the 70% of the population who get the electricity access actually still have limited access such as only from 5 pm to 11 pm.

Figure 1. Rachmat Gobel gave a lecture about low emission and development strategies

Figure 2. Artissa Panjaitan gave a lecture on science to policy to investment

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The installation of conventional electricity is high cost and not profitable in terms of business perspective therefore less investors are interested to invest especially in rural place with low infrastructure condition, he said.

‘’Indonesia is still lack of electricity and it could disrupt the country’s economy as there is a correlation between electricity consumption and economic growth,’’ he said.

Sugarcane which can be used to produce ethanol as fuel can be developed in degraded land where Indonesia has around 180 million hectares, he said.

‘’We just need 1.5 million hectares for sugarcane plantation to produce 6 million tons of ethanol as fuel to meet 15% to 20% fuel need,’’ he said.

URBAN LEDS IN INDONESIA

Steve Gawler, Director International Programs of Local Government for Sustainable (ICLEI) for Oceania said the challenges face by developing country like Indonesia is to balance the growing population with increasing consumption and the carbon emission reduction.

‘’For country like Indonesia, China, India and Brazil, we have the same problem, how we accommodate growing population and their good quality of life but stop polluting the atmosphere with carbon,’’ he said in ICCC Public Lecture held on March 20, 2014. Gawler and Irvan Pulungan, ICLEI’s Country Director for Indonesia talked about Urban LEDS in Indonesia. An integrated city planning and the political will of the city government in implementing Urban LEDS are very important, he said.

‘’If we talk about the development in the city we talk about Mayor, Regent and their administration. City government through its regulations or Perda can change the way people behave,’’ he said.

ICLEI helps cities around the world to implement development

ICCC Activity

with LEDS standards by connecting them with other cities and also financial institutions.

ICLEI’s Country Director in Indonesia Irvan Pulungan said ICLEI has now projects in two model cities, Bogor and Balikpapan.

‘’The aims of the projects are to build those cities in a low carbon way and at the same time encourage their economic growth inclusively by providing employments and improve the city revenue,’’ he said.

UK EXPERIENCE

The British meteorological office is now recognized worldwide to be the best climate predictor in the world because they gathering data from every commercial flight in the world using metal detector on the wings of the plane, said Sir David King, The United Kingdom Foreign Secretary’s Special Representative for Climate Change said in ICCC Public Lecture on February 24, 2014 themed on the UK Green Experience and the Global Context. The discussion also presented Rachmat Witoelar, Executive Chair of the National Council on Climate (NCCC/DNPI).

Figure 3. Situation at the Public Lecture on Climate Change

Figure 4. Sir David King shared UK experience on climate change

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“The metal detector is sending information constantly back to our meteorological office. They keep reinitiating that in their enormous computer program every six hours with the information and they tell you what tomorrow wheater will be throughout the world,’’ he said.

It is not a statistical mechanism they are using but a physic- based model of the world that includes every aspects, he said. ‘’We have become a meteorological office the world’s indicator of where extreme weather event will occur.’’

Typhoon Haiyan that hit the Philippines has been predicted with the parts of the hitting land, six days in advance including the severely of the hurricane.

‘’If you look at prediction and actual part you cannot distinguish one from another,’’ he said.

British meteorology office was also first and only met in the world that include climate change model in their predicted capability and GHG is the central part of the capacity. In predicting wheater, he said.

‘’Since 20 years ago our meteorology office has focused on climate change so it puts British in top position in developing and understanding the impact of climate change,’’ he said.

Rachmat Witoelar said it is vital to share different experiences in developing green innovation, and approaches that British

have done with a strong support from its community in handling problems caused by climate change.

There is a new paradigm on climate change now widely learned that climate change can be an opportunity instead of threat as it is used to be considered, he said.

‘’It must be looked in a scientific-based knowledge to promote policies that is integrated in the development strategies of the nation and implemented and executed by all. If that can be handled then we are on our way to answer to the threat of climate change,’’ he said. (Arfiana Khairunnisa)

ICCC Activity

ICCC PUBLICATIONS

Figure 5. Farhan Helmy gave opening remarks for ICCC Public Lecture on Climate Change

As a scientific forum, ICCC has conducted several studies and activities to support Government of Indonesia in developing policy on climate change. The ICCC’s studies and activities have been summarized in a form of book or information sheet, including Policy Memo: Peatland Definition from Uncertainty to Certainty, Synthesis Report of International Indonesia Peatland Conversation (IIPC) 2013 & 2014, Research Brief 2013: Sustainable Peatland Management, Preview of Study: Green Transportation Fuel for Sustainable Long Term Economic Growth, and Report of Peatland Definition and Peatland Mapping Methodology Assessment. Those publications of study and activity can be downloaded on ICCC website, iccc-network.net/publications.

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eatland has become sensitive issues in multi-sectors where in each decision, especially regarding to management and licensing, requires various criteria and indicators.

To optimize the achievement of sustainable peatland management, one of which is to simulate its multi-sectoral implications with various scenarios.

To accommodate this, it needs to develop a concept that allows for visual analysis in supporting an integrated peatland management activities conducted by the stakeholders.

For example in the planning, implementation, and evaluation which involves a wide range of components, use of multi-data with multi-scale, and the use of multi-resolution maps.

Compared with the dry peat, waterlogged or wet peatland have a smaller risk of the occurrence of fires, release of emissions and also the occurrence of subsidence.

Thus, any design or modification of water level setting excessive water. The increasing of investment in large scale undertaken by oil palm plantations and also Industrial Forest Concessions (HTI) on peat soil, causing importance boost to the progress of technology, and especially related to water management technology to support the implementation of sustainable peatland management.

In addition, a modern large scale of water level setting technology to maintain the balance of water availability on peatland, can be one of the important learning sites to test various hypotheses, as well as to discuss the concept and implementation as well as to identify existing limitations in generating criteria in achievement of sustainable peatland management.

The peatland is naturally an ecosystems with surplus of water, which is however, if in taking its advantages, it needs to control water level on peatland, therefore making it possible for commercial plants or crops to be grown. The balance of the availability of water in the peat is key to the realization of sustainable peatland management.

To be able to control the water level on peatland, required the availability of high quality data (such as data hydrotopography, hydrometeorology and hydraulics), and the necessary ability to analyze high and high operational standards, which has everything that is rarely available in the field. Given the high variability of the dynamics that occur on peatland (ie, associated with hydrotopography, hydrometeorology and hydraulics) is a large-scale area will be difficult to handle, the

land management with little risk can only be done on a small scale extents.

This approach can be learned from local farmers in traditional farming practices on peatland. The trial and error approaches (due to the unavailability of high-quality data) that were already done on the development of peatland management with small risk can be done with 500-1,000 ha scale. Because of the variability of seasonal peat soil productivity is high, coupled with the inability to manage the status of the water, then the agriculture activity on peat soil is not recommended as the primary livelihood. As its solution, integrated farming systems (including aqua culture, for example in flood season) need to be developed.

The Indonesia Climate Change Center (ICCC) itself through Peatland and Peatland Mapping Clusters in collaboration with peat experts, universities and related institutions conducting the study entitled Sustainable Peatland Management Across Sectors. Through this study, the ICCC makes the following recommendations:

• Minimize activities that are destructive for peatlands;• Synchronize laws and regulations pertaining to biophysical

issues and related to utilization and conservation including equal opportunity of access to the peatland in order to strengthen the welfare of the community;

• A renewal of peat mapping is needed in order to be able to provide the minimum information for the hydro-topography-based management of peat. National initiatives involving 1:50,000 mapping have not been able to accommodate these needs;

• There is a need for incentives for hydrological restoration of peat dome areas and the combination of farming systems which begin with introducing the types of commodities that can tolerate inundation of zones that should be returned to their natural function;

• The potential for fires and their impact on regional economic and health needs to be a fundamental reference in balancing the protection and exploitation of peat;

• Avoid building canals in the peat because such canalization will make the turf more susceptible to damage due to sea water intrusion;

• Various kinds of economic activity, using traditional farming without drainage, should receive incentives and government support including livelihood diversification without drainage needs being developed, including various forms of off-farm economic activities to divert pressure on the peatland drainage in conservation areas. (Eli Nur Nirmala Sari)

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Challenges in the Peatland Management