presentasi loknas sdgs_laksmi dhewanthi
TRANSCRIPT
• Current Condition: need to change
• Toward Green Economy
• Closing Remarks
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CURRENT CONDITIONNeed to Change
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World Economy Significantly Grow
Sumber : Austrian Development Agency (2010) dalam Adiningsih (2010)
Yet, …..
With Treats to Environment………….
Sumber: United Nations Environment Programme (2010 & 2011)).
Source : United Nations Environment Programme (2010).
UNEP: Business As Usual Scenario by 2030:
• Global energy demand up by 45%• Oil price up to US$180 per barrel• GHG emissions up 45%• Global average temperature up 6°C• Sustained losses equivalent to 5-10% of global
GDP• Poor countries will suffer costs in excess of 10% of
their GDP
Lead to Uncertain Economic Growth...
Sumber : United Nations Environment Programme (2011) dalam Adiningsih (2010) .
INDONESIA
• The on‐going unbalanced ecological footprint (unsustainable pattern of consumption and production) vs bio‐capacity ECOLOGICAL DEFICIT;
• Recent economic crisis and environmental disaster leads to no‐option than shift to sound‐economic development.
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0
500
1000
1500
2000
2000 2005 2010 BAU
2015 BAU
2020 BAU
2020 target
Peat Fire
LUCF
Waste
Agiculture
Industry
Energy
‐26%
‐41%
• Environmental condition is alarming, furthermore GHG emission tends to increase;
Indonesia’s 2020 carbon challenges
• Absence of market and economic value on the natural resources and environment;
• Lack of priority, and limited options of policy instruments, incl. Legal basis to develop various incentives;
9Source: World Bank (2002)and LIPI (2010)
Biodiversity lost: case of Borneo
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PAPUA
KALTIM
KALBARRIAU
KALTENG
NAD
SUMSEL
JAMBI
JATIMJABAR JATENG
SUMUT
SULSEL
SULTENG
KALSEL
SUMBAR
NTB NTT
SULTRA
LAMPUNG
MALUT
MALUKU
SULUT
BENGKULU
BABEL
BALI
BANTEN
DIY
GORONTALO
0 340 680170 Kilometers
Legend
Green GDP% GDP reg57 ‐ 7374 ‐ 8081 ‐ 8586 ‐ 8990 ‐ 92
Map of Indonesian Green GDP
sumber: KLH, ESP2 DANIDA, 2009
Environmental Quality Index of Islands (av. 2006 – 2008)
Main Islands EQI _________________________________1. Papua 75,292. Sulawesi 73,663. Bali dan Nusa Tenggara 68,964. Sumatera 64,635. Kalimantan 62,016. Jawa 53,50_______________________________________
Indonesia 60,07
Sumber: MoE, ESP2 DANIDA, 2009
Based on 3 indicators: surface water quality, air quality and land coverage
Unsustainable consumption and production (huge Ecological Footprint)
Without environmental carrying capacity (Bio‐Capacity)consideration, lead to:ECOLOGICAL DEFICIT..
Business As Usual Is Not The Answer,
Change Lifestyle globally is A MUST
Sumber : Adiningsih (2010) .
TOWARDSGreen Economy
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Source : Austrian Development Agency (2010).
Green Economy is not a new concept, yet has been 40 years in development…
Limits to growth: scenarios (Meadows) 1960s
Questioning consumption: (Ehrlich) 1970s
Sustainable development: (Brundtland 1989)
Green economic policy: (Pearce 1989)
Returns to environment investments: (Pearce 2005)
Economics of climate change: (Stern 2006)
Economics of ecosystems and biodiversity: (TEEB 2009)
Prosperity without Growth: (Jackson 2009)
Beyond GDP: (Sarkozy Commission 2009)
Source : United Nations Environment Programme (2010).
•Increase in greeninvestment
•Increase in quantity & quality of jobs in green sectors
•Increase in share of green sectors in GDP
•Decrease in resource use per unit of production
•Decrease in Environmental cost of production or consumption
• Decrease in wasteful consumption
UNEP’s GE
Source : Austrian Development Agency (2010) in Adiningsih (2010).
GE Coaliton(Green Economy Coalition):
“A fair and resilient economy, which provides a better quality of life for all achieved within the ecological limits
of one planet”
Different people emphasise different levels:
Micro‐economic activity: local green activities & (social) enterprise
Macro‐economic policy:set of economic and institutional policies (prices, accounting…)
Values:new paradigm and new innovation (protect nature, social justice/equity, resilient economy)
Global Initiatives on Green Growth and Green Economy: a comparison...
Source : Institute for Global Environment Strategies (2010).
3 Bottom line of Sustainable
Development
ENVIRONMENT “Planet”
ECONOMY “Profit”
SOCIAL “People”
•Efficiency•Growth•Stability
• Poverty • Social Gaps• Culture
Natural resources .Pollution/degradation .
Biodiversity .
Profit
People Planet
Eksploitatif Ekstraktif
Conflict
Sumber : Eryatno (2011)
Satisfaction of Human Needs by the Efficient
Use of Resources
Respect for Ecological Integrity
and Biodiversity
Social EquityPOLICY DESIGN
Equity Between Generations
Delegation of Authority
Stakeholder Participation
Ecological Services
Good Decision Making
Traditional Knowledge
Source : Eryatno (2011)
People Participate
BusinessEcology Ecological Services Industries
Ecological Carrying Capacity
Green Investment
Traditional KnowledgeStandard (effluent/ambient
Source : Eryatno (2011)
Why are so many people thinking we should first become rich and deal with climate problems later? It is the convenient paradigm of the Kuznets curve of pollution
Poor and clean
Rich and dirty
Rich and clean
Conventional Wisdom:More Wealth, more carbon intensity
Sumber : von Weizsacker (2009)
Escaping from this mindset means we need a„Kuznets Curve“ of decarbonization!
Rich and carbon free
GREEN ECONOMY “ Indonesia is of the view that Green Economy is a development paradigm that based on resource efficiency approach with strong emphasizes on internalizing cost of natural resource depletion on environmental degradation, efforts on alleviate the poverty, creating decent jobs, and ensuring sustainable economic growth”
(Indonesian Delegation/DELRI, UNEP 11th G SS, February, 2010)
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Definisi:Kondisi membaiknya kehidupan (well being) dan keadilan sosial (social equity) dengan secara signifikan mengurangi resiko lingkungan dan kelangkaan ekologi.
Green economy: menghubungkan pertumbuhan ekonomi, keberlanjutan lingkungan
(Bappenas, 2012)
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Both.. PUBLIC POLICIES and MARKETS fail the environment
(subsidized growth, distorsed energy price, no internalization the externalities)Are main causes of the current environmental challenges
INTERVENTION TO
CORRECT MARKET AND BEHAVIOUR
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UNSUSTAINABLE CONSUMPTION AND PRODUCTION
SUSTAINABLE PRODUCTION ANC CONSUMPTION
SCP framework 26as it lead s to sustainable development , it requires incentives
Economic to follow waves of innovation:
Source : United Nations Industrial Development Organization (2009) in Adiningsih (2010).
Effectiveness & Impacts
• Building Environmental Awareness EIs have been able to raise environmental awareness of stakeholders.
• Incentivizing Sustainable Use of Resources provide incentive fot stakeholders to move towards sustainable use of resources behaviour
• Promoting Environmental Investment shifted “end of pipe” to “industrial efficiency”
• Complementing Environmental Law Compliance EIs, such as environmental labelling, environmental performance rating system as well as environmental compensation, contribute to enhance environmental compliance of the stakeholders, and to strengthen environmental law enforcement.
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Hindrances
• Lack of common understanding about economic instrument for environmental management among stake holders in Indonesia
• Lack of sectoral support to implement economic instrument;• Lack of legal framework, especially with regard to fiscal
instruments;• There are many conflicting regulatory instruments with regard
to fiscal initiatives for natural resource extraction and environmental regulation;
• Lack of clear targets for implementation of economic instrument both at local scale and national scales.
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Scope of EIs for Environmental Protection and Management in Indonesia
3131
PLANNING FINANCE/FUND
Natural Resources and Environmental Accounting (NREA)
Internalization of Environmental Cost
Green GDP/GDRP
Environmental Emergency Fund for Mitigation and Rehabilitation
Environmental Performance Bond
INCENTIVE/DISINCENTIVE
Green Banking and sound Capital Market
Environmental Taxation (retribution, tax, subsidy, fee, etc)
Payment for Environmental Services (PES)
Tradeable permit
Environmental Performance Award
Green Procurement
Environmental Compensations (Payment for Environmental Services between regions)
Environmental Labelling (Ecolabel)
Environmental Trust Fund
Environmental Insurance
Green Government Budget
Source: Act 32/2009
Revenuemobilisation
Incentives towardssustainable resource use
Objectives of Environmental Finance
Incentives set by the State
Payments forEnvironmental
Services
Access and Benefit Sharing
Carbon Offsets
Environmental funds
Debt-for-nature swaps
Mechanisms foradministrating funds
Refundsystems
Concessions or performancebonds
Creation of markets
Private donations
Emission charges Tradable
permitsEnvironmentaltaxes
Waste and water fees
certificationEnvironmental Fiscal Reform
Fundsfrom outside
resourcemanagement
Funds linked
to resourceuse (self-
generated)
Funds from governmentand donors budegts
Reform and removal of adverse subsidies
Productcharges
Diagram modified from Emerton, L. et al. (2006) Sustainable Financing of Protected Areas, IUCN and Fischer, A. / Petersen, L. / Hubbert, W. (2004): Natural Resources and Governance: Incentives for Sustainable Resource Use, GTZ).
Overview of development of incentive instruments for the environment in Indonesia (emphasized by Act 32/2009)
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• Fiscal Policy incentives for REDD/ forestry / other sector
• Streamlining DAK for Environment
Carbon Tax
Fiscal mechanism/ tax exemption for manufacturingto encourage low emission
Grant mechanism for transport system
Climate Change
Subsidy/ fiscal incentives for renewable energy
Time 2010 2011 2012 2013 2014
• Develop charge mechanism for waste
• Develop protocol for Payment for Environmental Services (PES)
• Capacity Building For EI’s• Develop protocol for environmental
damage assessment • Legal framework Develop protocol for economic valuation in
relation to spatial planning
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From Lessons Learned To Further Development
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Focus on getting the market price of environment right
1. Shifting away levies from items that are valued highly by society (manual work, intellectual creativity) to undesirable items (pollution);
2. Tax-subsidies to correct distortions (taxing private for subsidizing public transportation, taxing fossil fuel to subsidize wind energy);
3. Environmental service user pays the provider (down-stream river user pays upstream river people to prevent sedimentation)
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Integrating decentralized policy making• Provinces and Districts are autonomous to impose
levies on natural resources with Central Government’s approval.
Effective implementation in nature• Possible and reasonable cost to implement, falls as
clearly and directly as possible on the ultimate payer, embody no favoritism or special exception, correspond to the payer’s ability to pay, and NOT bring about undesirable economic distortions.
Public and Private Involvement
• Actively involvement of stakeholders are crucial
SUGGESTIONS FOR FURTHER DEVELOPMENT
To set a policy direction for further develop economic instruments for environmental protection and management in Indonesia, aiming, mainly, to change unsustainable consumption and production pattern into more resource use efficient behaviour
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GREEN ECONOMY AS ONE OF KEY TO SUSTAINABLE DEVELOPMENT
PRO PEOPLE (poor people) PRO GROWTH
PRO ENVIRONMENT PRO JOBS
GREEN ECONOMY
• Extended Producer Responsibiliry
• CSR
• FROM MAINSTREAMING TO COMPLEMENTARITY• TIERING/LEVELING OF INDICATOR: global & local
• INTEGRATED DASH BOARD OF SUSTAINABLE DEVELOPMENT
• Green GDP• Inclusive
Economic Policy
• ENR Intensity• Env. Quality
Index• Green Budget
Rasio
• Rasio on decent jobs
• Labour wealth
CLOSING REMARKS • Shifting to inclusive and sound environmentally economic growth is
a must through changing unsustainable consumption and production pattern;
• Implementing economic instrument for environmental management in Indonesia is both timely and urgent as an integral part of Indonesia’s sustainable development;
• Given many varieties of economic instruments to be implemented with their complexities and constraints, a priority must be chosen;
• There are many initiatives that have been developed and implemented with regard to those instruments in Indonesia. Yet, there are some constraints with these initiatives which could be remedied and improved.
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Thank YouContact us:
Assistant Deputy for Environmental EconomicDeputy Minister for Environmental Governance
A Building, 4th floor Jl D.I Panjaitan Kav 24
Kebun Nanas ‐ Jakarta TimurPh/fx. +62 21 8517161