Current Condition of CDM

Development in Indonesia and

Indonesian Position towards Post
Kyoto

Masnellyarti Hilman, MSc

Deputy Minister of Nature Conservation Enhancement and
E i
Environmentalt l Degradation
D d ti C t l as The
Control Th HHead
d off
National Committee on CDM of the Republic of Indonesia

State Ministry of the Environment, Republic of Indonesia

Delivered on Carbon Expo

Cologne, 4 May 2007
Indonesia’s policy on CDM Project
j

{ Ratification of the UNFCCC (Act No.6/1994)

Ö Indonesia commit to participate in the
global climate change
g g mitigation
g and
adaptation program
{ Ratification of the Kyoto Protocol (Act No.17/2004)
Ö Opportunities for Indonesia to
implement CDM
{ Establishment Indonesia’s DNA on CDM (Minister of
Environment Decree No.No 206/205)
Ö As national committee to approve CDM project that
has been complied with the Indonesia sustainable
criteria
{ Ministry of Forestry Decree No. 14/2004 on A/R CDM
 DNA’ F
DNA’s Functions
i
{ Regulatory (mandatory)
z Granting recommendation to CDM project proposals
that pass Indonesia
Indonesia’s
s sustainable development
criteria
z Tracking and annual reporting to the UNFCCC
Sec eta at
Secretariat

{ Promotional (optional)
z Facilitating
F ilit ti communication
i ti b
between
t iinvestors
t and
d
project proponents as well as other stakeholders
z Facilitating capacity building for Indonesian
institutions to be able to propose and implement CDM
projects
z Providing information on available CERs and/or CERs
potential to potential buyers
St
Structure
t off CDM National
N ti l Committee
C itt

CDM National
Board
Secretariat

Technical Expert Stakeholder

Committee G
Group Forum
Indonesia’s
d i ’ DNA on C
CDM

Representatives from nine national government agencies:

z Ministry of Environment
z Ministry of Energy and Mineral Resources
z Ministry of Forestry
z Ministry of Industry
z Ministry of Foreign Affair
z Ministry of Home Affair
z Ministry of Transportation
z Ministry of Agriculture
z National Development Planning Agency
 Opportunities and Challenges
{ National Strategy Study of CDM on Energy Sector
(2001)
z CDM potential volume: 25.2 Mt CO2 annually
z Mitigation options: geothermal energy,
utilization of flared gas, fuel switching,
cogeneration,
g , heating
g systems,
y , etc

{ National Strategy Study of CDM on Forestry

Sector (2003)
z A/R CDM potential volume: 28 Mt CO2 annually
z Expected CER from approved projects : 1.5
million CO2/year
 Indonesia s strategy to develop
Indonesia’s
CDM Projects (1)
{ Raising awareness for local government and other
related institutions
Ö What we do : Workshop,
p, seminar,, making
g documenter
film for climate change issue, flyers and establishing
working group (WG) as for : Energy Sector, Forestry,
Adaptation, Financial Mechanism, and Post Kyoto

Ö Publication and Campaign

{ International Cooperation
p
9 Netherlands
9 Denmark
9 Austria
9 Canada
3 JBIC (Japan Bank of International Cooperation)
9 In progress with Spain & Republic of Korea
 Indonesia’s strategy
gy to develop
p
CDM Projects (2)
n Equal advantages between developing countries
(host) and the Annex I countries
o I line
In li with
ith and
d supported
t d the
th Indonesian
I d i
sustainable development strategy
p Implemented within local institutional and
technological capacities
q Use of appropriate technology, development of
t h i l standards,
technical t d d and d capacity
it building
b ildi
r Supporting government related policies,
institutional development and awareness raising
CDM Project’s
Project s Requirements

‰ CDM Project implementation is voluntary

‰ Project Activity could be proposed:
1. For new activities (since year 2000)
2. For current activities :
•introducing new technology (sound
environment technology : energy
efficiency, fuel switching for lower
emission)
•enlarging capacity
‰ F lfill Sustainable
Fulfill S t i bl D Development
l tCCriteria
it i
Criteria and Indicators
for Sustainable
Development
 Environmental Sustainability
The Scope of evaluation is the area within the
project’s ecological border affected directly by
the project activities.
activities
z Criteria: Environmental sustainability by practicing
natural resource conservation and diversification
{ Maintain sustainability of local ecological
functions
{ Not exceeding the threshold of existing national,
as well as local, environmental standards (not
causing air,
air water and/or soil pollution)
 Environmental Sustainability (2)

{ Maintaining genetic, species, and ecosystem

biodiversity and not permitting any genetic
po ut o
pollution
{ Complying with existing land use planning

z Criteria: Local community health and safety

{ Not imposing any health risk
{ Complying with occupational health and
safety regulation
{ There is a documented procedure of
adequate
d actions to b
be taken
k in order
d to
prevent and manage possible accidents
 E
Economic
i Sustainability
S t i bilit

The scope off evaluation

Th l ti is
i within
ithi th
the district
di t i t (city)
( it )
administrative border. If the project’s impacts
are cross-district(city),
di t i t( it ) th
the scope extends
t d tto cover
all affected districts (cities)
z Criteria: Local community welfare
{ Not lowering local community’s income
{ There
e e are
a e adequate
adequa e measures
easu es too overcome
o e co e the
e
possible impact of lowered income of community
members
{ Not lowering local public services
{ An agreement among conflicting parties is reached,
conforming to existing regulation, dealing with any
lay-off
lay off problems
 Social Sustainability
The scope of evaluation is within the district
(city) administrative border. If the project’s
impacts are cross-district(city), the scope
extends to cover all affected districts (cities)
z Criteria: Local community participation in
the project
{ Local community has been consulted

{ Comments and complaints from local

communities are taken into consideration
and responded to
 Technology Sustainability
The scope of evaluation within national border
z Criteria: Technology transfer
{ Not causing dependencies on foreign parties in
knowledge and appliance operation (transfer
of know-how)
know how)
{ Not using experimental or obsolete
technologies
{ Enhancing the capacity and utilisation of local
technology
Approval Procedure Flowchart for
CDM Project
 Procedure for CDM project
approval
1 The Secretariat receives and checks that the application documents are
1.
complete
2. Internal Coordination Meetingg between Members of the Commission to
decide whether or not to assign Expert Advisors to perform an additional
evaluation to the Project Proposal as second opinion.
3 The Commission assigns members of Technical Team to evaluate Project
3.
Proposals based on sustainable development criteria and indicators
4. Technical Team submits the Evaluation Report
p and Expertp Advisors submit
the Additional Evaluation Report to the Secretariat. Secretariat then passes
both reports to the Members of the Commission
5 M
5. Members
b off the
th Commission
C i i make k ad decision
i i whether
h th th
the P
Project
j tP Proposall
will be given Approval or Rejection in The National Commission Decision-
making Meeting.
6. The Secretariat gives the Approval Letter from NCCDM to the Project
Proponent
CDM Projects
j status at Indonesian DNA

Up to present Indonesia’s DNA has

received 23 PDD

Approved
A dbby DNA : 13 projects
j t
Registered on CDM-EB : 8 Projects
Rejected by DNA : 4 Projects
DNA Process : 6 Projects
 CDM Projects Regitered on CDM EB
No Project Participant Project Name Expected CER Status

1. - PT Petromat CDM Solar Cooker Project 24.500 ton CO2 Registered on

Agrotech
g Aceh CDM-EB
- Klimaschutz e.V.
2. - PT Indocement Indocement Blended Cement 5.260.470 ton CO2 Registration
- World Bank PCF Project process
3. - PT Indocement Indocement Alternative Fuels 2.469.330 ton CO2 Registration
- World Bank PCF Project process
4. PT Multimas Nabati MNA Biomass 9.7 MWe 611.800 ton CO2 Registered on
Asahan Condensing Steam Turbine CDM-EB
CDM EB
5. PT Murini Sam Sam MSS Biomass 9.7 MWe 611.800 ton CO2 Registered on
Condensing Steam Turbine CDM-EB
6. - PT Indotirta Suaka Methane Capture
p and 1.660.518 ton CO2 Registered
g on
- Mitsui Co. Ltd Combustion from Swine CDM-EB
Manure Treatment Project at
PT Indotirta Suaka Bulan
Farm in Indonesia
7. - PT Chevron Darajat Unit III Geothermal 4.401.236 ton CO2 Registered on
Geothermal, Ltd Project CDM-EB
- Chevron Limited
8. - PT EcoSecurities Lampung Bekri Biogas 218.370 ton CO2 Registered on
Indonesia Project CDM-EB
- Cargill S.A.
 CDM Projects
j Approved
pp by
y DNA
(by May, 2007)
Expected CER &
No Project Participant Project Name Status
Crediting Period

1. BPPT & Climate Cook Stove Project 423.790 tCO2eq DNA Indonesia
Interchange
g AG Kupang-1
p g (
(10 y
years)) approval
pp

2. PT Navigat Organic PT Navigat Organic Energy 733.246 tCO2eq DNA Indonesia

Energy Indonesia & Indonesia Integrated Solid Waste (7 years) approval
Mitsubishi UFJ Management (GALFAD) Project in
Securities Co., Ltd
d Bali
l

3. - PT. Medco Energi Medco Energi Associated Gas 1,182.55 tCO2eq DNA Indonesia
Internasional Recovery and Utilization Project (7 years) approval
- PT. Medco LPG Kaji
- PT. Medco E&P
I d
Indonesia;
i &
- Carbon Compliance
Acquisition Corporation
16

4
Indonesian position on Post Kyoto
{ Developed countries should continue their
commitment
co t e t in reducing
educ g Green
G ee House
ouse
Gases emission through the principle
common but differentiated responsibilities
{ Developing countries will implement CDM
with certain emission reduction target and
time frame specific to each sector as a
voluntary basis
Future of Carbon Market
{ Executive board is assigned to evaluate and
approved project with new methodologies
{ DNA will
ill evaluate
l t ththe PDD which
hi h h
has approved d
methodologies by EB
{ Validation and verification p
process are still carried
out by designed Operation Entity (DOE) or third
party accredited by the EB
{ Report on validation and verification will be
submitted to the EB as well as to the DNA
{ Future regime should give more focus on creating
incentives for technology transfer and options for
strengthening existing international technology
cooperation agreements
Deputy Minister of Nature Conservation Enhancement
and Environmental Degradation Control as
The Head of National Committee on CDM of
the Republic of Indonesia

c.q. D
Deputy
t Assistant
A i t t off Climate
Cli t Change
Ch IImpactt Control
C t l
Unit
State Ministry
y of the Environment Republic
p of
Indonesia

Ph. +62-21-851
Ph +62 21 851 7164
Fax.+62- 21-8590 2521
http://dna-cdm.menlh.go.id
climate@menlh.go.id
li lh id
Thank you