Accelerating the Move Towards Net Zero Emissions
Indonesia's lowest position in preparing for the NZE is surprising because Indonesia was previously known to be active in international forums on global climate change. How are we supposed to improve our standing in this race?
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The Energy and Climate Intelligence Unit reported that in July 2023, Indonesia's position was in the lowest place among 159 countries in preparation for net zero emissions.
The 2015 Paris Agreement to prevent the planet from getting warmer continues to spawn new ideas. At the 2019 Climate Action Summit, the “race to zero” movement was proclaimed, driving the participation of global alliances outside of government to achieve net zero emissions (net zero emissions/NZE).
Indonesia's bottom position in preparing for Net Zero Emissions (NZE) is somewhat surprising as the country was previously known to be active in international forums on global climate change. How should we improve our position in this competition?
Slow
Indonesia's plan to achieve NZE by 2060 is considered too late as most countries plan to achieve it by 2050, or even earlier. Furthermore, Indonesia's NZE-2060 is still in the stage of discussion or proposal, and has not yet reached the stage of declaration, policy, let alone being established as law. At present, 26 countries have established their NZE in the form of laws.
Indonesia was once a pioneer of developing countries in responding to global climate change. ”Pittsburgh's promise” to reduce greenhouse gas emissions (GHG) by President Susilo Bambang Yudhoyono at the G20 Summit in 2009 was followed by the issuance of Presidential Decree No. 61/2011 concerning the National Action Plan for Reducing Emissions GHG and establishment of supporting regulations and institutions, including the REDD+ Agency and the National Council on Climate Change (DNPI). However, this promise was not consistently carried out.
Also read: Carbon Trading Accelerates Reduction of Greenhouse Gas Emissions
In accordance with the Paris Agreement, Indonesia has quickly submitted its nationally determined contribution (NDC) and revised its target to reduce GHG emissions by 31.9 percent through its own efforts and 43.2 percent with foreign assistance (September 2022 version).
NDC Indonesia has been synchronized with the multi-sectoral development program in the 2020-2024 National Medium-Term Development Plan. However, the concept of NZE-60 Indonesia is not mature enough to be promoted in the "race to zero".
Renewable energy
The energy sector, particularly the burning of fossil fuels for electricity generation, transportation, and industry, is considered responsible for greenhouse gas emissions. Indonesia is a country highly dependent on fossil fuels, with almost 90 percent of our primary energy mix now composed of oil, natural gas, and coal. In fact, coal, which is the largest emitter of greenhouse gases, recently has the largest share.
Beside its vast and unique fossil fuel resources among other Asian countries, Indonesia - located in a fertile tropical region and on volcanic belt - has great potential for renewable energy: water, geothermal, solar, wind, and bioenergy. Only less than one percent of the potential has been utilized, with the largest utilization being in hydro and geothermal power.
The utilization of renewable energy to the maximum extent possible and the reduction of the use of fossil fuels are the main strategies of the world to reduce greenhouse gas emissions towards zero. Although renewable energy reserves are abundant, eliminating fossil fuels in the next 4-5 decades for Indonesia is not easy. Indonesia's development of renewable energy is currently very slow, even compared to neighboring countries in Southeast Asia.
Upholding the commitment to the development of renewable energy in conjunction with the firm stance of not prioritizing the development of fossil fuels, especially coal, must be highly regarded in Indonesia.
Legislation
The development commitment to achieve the NZE goals requires support not only from adequate financial, technological, institutional or human resources, but most importantly laws and regulations.
Indonesia has laws on Oil and Gas as well as Mining and Coal, but it does not yet have a law specifically for renewable energy. Energy Law No. 30/2007 does not yet contain integrated energy-economic-environmental policies for Indonesia to pursue.
Government Regulation No. 79/2014 on National Energy Policy includes targets for national energy supply and the share of energy sources, but does not include emissions from energy supply and utilization as targets to be controlled.
Presidential Regulation No. 79/2014 projects that the share of fossil fuels in Indonesia's energy mix in 2050 will still be highly dominant, comprising around two-thirds of the country's national energy consumption.
In summary, the current legislation in the energy sector does not yet accommodate or even contradicts the spirit of achieving net zero emissions that the world is currently striving for.
Indonesia has promptly ratified the Paris Agreement, submitted its NDC, and even submitted the Low Carbon Development and Climate Resilience 2050 Long-Term Strategy to the UNFCCC. Indonesia needs to immediately issue a law on zero net emissions to be able to run faster in the world's race towards zero.
Hanan Nugroho, Main Planner at National Development Planning Agency