Low Carbon Development

In the recent 2018 Intergovernmental Panel on Climate Change (IPCC) report, scientists issued a stern warning that the threshold for the global temperature rise to save our earth from the catastrophe of global warming was 1.5 degrees Celsius, not 2 degrees.

Indonesia is a signatory to the international agreement on global warming. For those of us who live in the world\'s largest archipelagic nation, which is very likely to feel the greatest impact of global warming, the warning should multiply our sense of urgency.

The extreme natural disasters that have recently occurred in a number of countries, including ours, have made us aware of the urgency for acting. Now, five years is no longer enough for us to systematically and substantively integrate – not just include – the impact of climate change into the country’s formulation of mainstream development plans and public policy.

We also have good news. From various expert studies (Nordhaus, 2014; LECB, 2015), we have learned that climate change mitigation does not have to conflict with our other development goals.

High economic growth, meaningful progress in social welfare, and clean environment can be realized together. There is no need for a trade-off between development and environmental conservation. The key is to formulate the right and consistent policy framework.

Policy framework

The National Development Planning Board (Bappenas), supported by scientists from inside and outside the country, is currently developing the policy framework, one that "mainstreams" low-carbon growth into our development planning. This policy framework is based long-term development perspective over the next 20-30 years.

Breakthrough solutions are being formulated to substantively integrate low-carbon growth into the 2020-2024 National Medium-Term Development Plan (RPJMN). The initial report, which summarizes efforts to mainstream low-carbon growth into our development plans, will be completed in March.

Take, for example, two of the fields at the focus of low-carbon development studies: land use and energy use. In the past two decades, forest and peat fires have been a large source of carbon emissions. We already have basic regulations on managing them. However, the main obstacle always lies in their actual implementation.

Therefore, the focus of the exercise is to formulate a comprehensive policy framework that ensures more effective control and prevention of forest and peat fires, which also overcomes the food problem and manages unsustainable land use at the same time. Regulations still need to be improved, but the main task lies in improving governance and the effectiveness of implementing institutions, including enforcing operational regulations.

Because implementation affects the people and businesses, there is also a need to formulate incentives and new financing schemes to encourage investment and the adoption of new technologies as necessary.

The focus of the next report is energy use, especially in the energy and transportation sectors and in urban infrastructure. The use of fossil energy is the dominant source of carbon emissions at present, especially in urban areas.

Without special actions, the situation will only grow worse and social costs will only increase in the next few decades. As regards energy, attention should be given to transitioning from the use of fossil fuels (especially coal) to clean and renewable energy sources, such as geothermal, solar, wind and hydro. Our country has abundant potential in these energy sources.

Regarding the transportation sector and urban activities, the draft policy framework includes accelerating the development of public transport systems, implementing appropriate road and vehicle taxes, reviewing fuel subsidies, and improving waste management, combating pollution, ensuring a clean water supply, improving air quality and urban facilities. All must be based on careful calculations and lead to the proposal of concrete steps.

Coordination and consultation

On paper, it is not too difficult to formulate the points mentioned above. However, development planning is not just a technical job. In reality, it is absolutely necessary to undertake intensive coordination and consultation with stakeholders, central and regional institutions, business leaders and other stakeholders outside the government. This work should be carried out once the blueprint is complete.

Successfully implementing this blueprint relies heavily on the involvement and full participation of all stakeholders. My appeal to all stakeholders is that we must fully support and welcome the initiative to substantially integrate low-carbon growth into the RPJMN 2020-2024. This is an initial step, but it is a crucial one to ensure the sustainability of our future development for the sake of our grandchildren. (Boediono, Former Vice President of the Republic of Indonesia (2009-2014))