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Green

Economy
A Concept for PES and
REDD+ in Indonesia

Agus Sari
agus.sari@citizenforest.com
Seoul, October 4, 2011

Striving for a green economy, we will more


quickly mainstream ecological concerns into our
economic decision-making. This can ensure
sustainable and inclusive growth and the
achievement of the MDGs. Thus we have a clear
opportunity to reshape our economic systems
and to introduce green growth as a global
paradigm.
-- President Susilo Bambang Yudhoyono

The
Environment

Economic
Activities

Reduction of emissions of greenhouse gases by

26 percent
and
Continue to grow the economy by

7 percent
Possible?

Development targets
Pro growth: Economic growth of 7 percent.
Pro poor: Poverty level below 11 percent.
Pro job: Unemployment level below 14 percent.
Pro green: Greenhouse gas emission reduction
of 26 percent below otherwise happen under
business as usual (41 percent with foreign
assistance).

Green economy

Account for the costs of


economic growth on the
environment in the black
sector.

Account for the economic benet of


environmental protection in the
green sector.

Shift from black to green


sources of growth.

In Indonesia, we intend to advance a national


green skills development strategy. We plan to
pursue a decentralized youth apprenticeship
program for green jobs and take measures to
foster entrepreneurship and self employment in
the green sector.
-- President Susilo Bambang Yudhoyono

This years milestones


Presidential Decree no. 32/2011
on the Masterplan for the
Acceleration and Expansion of
Economic Development in
Indonesia 2011 2025.

National Council on Climate
Change released a series of
studies on Low-Carbon Economy.

Presidential Decree No. 61/2011
on the National Action Plan for
the Reduction of Emissions of
Greenhouse Gases.

National Action Plan


for the Reduction of Emissions of Greenhouse Gases
Unilateral (26%)

Foreign Assisted
(41%)

Forestry and peat


Waste Management
Energy and
transportation

0.672
0.048
0.038

1.039
0.078
0.056

Agriculture
Industry
Total

0.008
0.001
0.767

0.011
0.005
1.189

Forestry and peat sectors constitute the largest


reduction, at

88 percent
While they contribute to the total emissions at

85 percent

The cost of deforestation

In the late 1990s res:

$1.6 2.7 billion from forest


degradation and deforestation;

$674 - $799 million from smoke
haze pollution (probably even
higher), and

$2.8 billion associated with
carbon emissions


Indonesian Corruption Watch
(ICW) estimates that Indonesia
loses Rp 14 trillion ($1.6 billion) a
year as a result of deforestation.

Deforestation during the
2005-2009 period totaled 5.4
million hectares, equivalent to Rp
71.28 trillion.

Reduction of Emissions
from Deforestation and
Degradation of Forests
Deforestation and Land Use Change
constitutes 15-20 percent of the
worlds yearly emissions of
greenhouse gases, notably carbon.

Two countries emit half of the
worlds forest carbon: Indonesia and
Brazil.

Reducing deforestation rate reduces
emissions.

Parties that could reduce
deforestation can gain
compensation through carbon
markets.
Figure Courtesy of http://maps.grida.no/go/graphic/carbon-
stocks-trends-and-projections-compared-to-1860

REDD+ in Indonesia
Emissions from peat and
deforestation in Indonesia
amounts to almost 2 billion
tons of carbon dioxide.

Halving deforestation will
reduce emissions by at least
1 billion tons of carbon
dioxide.
At $5 per ton, there is an
opportunity to market the
emission reduction credits
at $5 billion.

Carbon is not the only


ecosystem service
Carbon reservoir.

Water catchment and
regulator.

Biodiversity.

Others.

Study by Padjadjaran University


Increase energy eciency by 25
percent,
Reduce coal-based fuels by 50
percent,
Reduce the rate of deforestation by
10 percent,
Implement carb0n tax of $50 per
ton.

Cut emissions of carbon dioxide by
177 million,
Increase GDP by 2.7 percent (Rp 133
trillion) per year,
Create 3 million new jobs, and
Reduce the number of poor people
by more than 4 million per year.

Implementation
Moratorium of productive
concessions except for
ecosystem restoration.

Presidential mandate for
the Taskforce to design and
establish the REDD+
agencies extended.

About 40 REDD+ pilot
projects developed

Thank you