1. LESSONS LEARNED & BEST PRACTICE OF TNAs IN INDONESIA NATIONAL PERSPECTIVE Development and Transfer of Technologies WG Ministry of Environment – Agency for the Assessment and Application of Technology Workshop on sharing best practices with conducting TNAs Bangkok, Thailand, 27-29 June 2007

2. Sumatera 470,000 km2 Papua 420,000 km2 Sulawasi 190,000 km2 Kalimantan 540,000 km2 Java 130,000 km2

3. BACKGROUND Indonesia consists of more than 13,000 islands with 5 big islands. Indonesia will be impacted seriously by climate change, a number of islands will be impacted if sea level rise as UNFCCC prediction. Important to involve in the activities for reducing GHG emission to reduce climate change impacts. Unfortunately, fossil fuel energy will remain dominant in the future national energy mix. The goal of national energy security and environmental protection must be reconciled. We need to drive the national technology system toward low carbon and carbon free energy technologies.

4. Indonesian Working Groups on Climate Change MitigationPost KyotoForestryAdaptionEnergyFinancial Mech. Transfer of Technology Waste Ocean ForestryAgricultureTransportation IndustryEnergy: Working Group on Climate Change Activities: to undertake qualitative policies and measures that lead to the our response to Climate change, i.e. to stabilize concentration of GHGs at the safe level. Working Group of Transfer of Technology Activities: to further derivation and enrichment the previous project and to prioritize technology needs, and capacity building to assess technology needs, modalities to acquire and absorb them. EXISTING INDONESIAN WORKING GROUP ON CLIMATE CHANGE

5. INSTITUTIONS IN TECHNOLOGY TRANSFER WORKING GROUP Ministry of Environments Ministry of Research and Technology Agency for the Assessment and Application of Technology (BPPT) Governments Departments: Energy & Mineral Resources, Forestry, Agriculture, etc. Meteorology and Geophysical Agency Indonesia State Electricity Company Private Sectors Universities NGOs

6. EXISTING INDONESIA LEGAL AND REGULATORY FRAMEWORK ON TT Presidential Decree No.5, 2006 on energy mix by the year 2025 Presidential Decree No.10, 2005 on energy efficiency Plan to plant 2 billion trees in 10 years Government Target: –Share of at least 17 % renewable energy. –Emission reduction in industry, transportation, Agriculture, waste, energy generation, forestry, and other sectors.

7. PRIMARY ENERGY MIX 2005 TARGET ENERGI MIX NASIONAL 2025 (PERPRES NO. 5/2006) Enhancing energy security & mitigating CO2 emissions: to secure strategic reserve, to improve efficiency in energy production & use, to increase reliance on non fossil fuels and to sustain the domestic supply of oil/gas (slower growth in fossil fuel-demand in oil/gas imports and in emissions). Proposed energy technology use, diffusion and deployment, increasing clean energy technologies. Energy infrastructures and its time frame. Etc. THE NATIONAL ENERGY ISSUES What is the Sustainable Road Map? NATIONAL ENERGY TRAJECTORY ≤ ≥ ≥ ≥ ≥ ≥ ≥ ≥ t2?t2? t1?t1? t3?t3? t 25 EBT +

8. LINKAGE BETWEEN ISSUED REGULATIONS IN POWER SECTOR

9. IDENTIFICATION OF LESS GHG EMISSION TECHNOLOGIES IN INDONESIA (Existing Indonesian TNA submited to UNFCCC on 2001) The immediate objective: –to enable Indonesia to identify national technology needs, –capacity building to asses international technology availability, and –modalities to acquire and absorb the appropriate technology. Sectors in Existing Indonesian TNA Energy Sector –Energy Industry –Industry Sector –Household and Commercial Sector –Transportation sector Non-Energy Sector – Agriculture and Livestock – Forestry

10. IDENTIFICATION OF LESS GHG EMISSION TECHNOLOGIES IN INDONESIA (Existing Indonesian TNA submited to UNFCCC on 2001) MODALITIES OF TECHNOLOGY TRANSFER Institutional Establishment Regulation Development Procedure of Transferring Technology The Role of Decentralization System & Procedure Establishment Financial Arrangement – Foreign Direct Investment – Official Development Assistance – The Global Environmental Facility – Clean Development Mechanism – Multilateral & Bilateral Agencies – Regional Development Banks – Etc.

11. IDENTIFICATION OF LESS GHG EMISSION TECHNOLOGIES IN INDONESIA (Existing Indonesian TNA submited to UNFCCC on 2001) Criteria for prioritizing technology needs –Utilization of local resources –Rational utilization of resources –Socio-economic important –GHG reduction potential –Investment cost –Social acceptance –Minimum impact on environment Methods for prioritization of technology needs –Cost–benefit and risk–benefit analyses

12. IDENTIFICATION OF LESS GHG EMISSION TECHNOLOGIES IN INDONESIA (Existing Indonesian TNA submited to UNFCCC on 2001) Indonesia listed barriers and measures sector-wise. Types of barriers to technology transfer identified are: –Economic / market –Information/awareness –Policy –Regulatory –Institutional –Human –Technical –Infrastructure Indonesia expressed concern about the high investment costs of selected mitigation options, which could translate into higher product prices and loss of competitiveness in the case of the energy sector. However, it identified barriers only in the transport, forestry and agriculture sectors.

13. TECHNOLOGY TRANSFER WORKING GROUP ACTIVITIES Approach / Methodology: Technology transfer is intended to reduce the emission intensity of the economic activities, which is determined by the emission generated per unit of economy output. Derivation & enrichment of the existing TNA which also refer to Conducting TNA for Climate Change, UNDP 2004. Further cost/benefit, risk/benefit and multi-criteria analysis particularly in energy sector. Prioritizing the urgent Indonesian Technology Needs (mapping) Prioritizing of Indonesian TNA based on the Existing TNA / Identification

14. EXPECTED SCHEDULE ProgramChoice of Technology TNA RevisionTechnology Priority week (starting June 07) 1 2 3 4 July 5 6 7 8 9 10 11 12 Aug Sep 13 14 15 16 Oct WGTTR R R R P D R U R SWG Energy R P P P D SWG Transportation R P P P D SWG Industry R P P P D SWG Forestry R P P P D SWG Agriculture R P P P D SWG Ocean R P P P D Output SWG Task Distribution TNA draft per sector WGTT Input to COP13 Indonesian Position COP13 R= Meeting, P=Process, D= Draft, U =Proposal SWG sub working group

15. EXAMPLE OF TECHNOLOGY NEEDS IN INDONESIA High Efficiency Power Generation: Clean Coal Technology, CHP Technology, etc. Energy Efficiency in Industrial sector (cement, iron & steel, pulp & paper, fertilizer, textile, mining, lime calcination, chemical, etc.) Energy Efficiency in Industrial Equipments (Industrial process, electrical motor, boiler, compressor, furnace, Refrigeration, heater, room conditioning, cooling tower, electrical system, combustion, pump, lighting, steam distribution, waste heat recovery, etc. Energy consumption efficiency in transportation including using gas for vehicles including improvement of public transportation Carbon Capture Sequestration (CCS) Cleaner Production Technology for Industry Renewable Energy: Biomass, Wind, Solar, Ocean, Geothermal, Hydro electric, etc. Climate modification technology Climate monitoring & reporting system

16. PRIORITIZING PLAN OF TECHNOLOGY NEEDS Technology Reducing CO2 Emission in Several Sectors: Energy, Industry, Transportation, Forestry, Agriculture, Ocean and Waste. Calculating CO2 Balance in several Sectors: forestry, agriculture, wetland, ocean, river, energy, transportation, industry and public utility (domestic waste landfill). Technology for Better Climate System Monitoring & Reporting for Indonesia. Technology for Identify the Impact of Climate Change Such as: Prediction of Temperature and Sea Level Rise and Its Impact for Indonesia. New issue: Technology of Using Ocean for CO2 Sink (80% of Indonesia Area is Ocean).

17. EXAMPLE OF TECHNOLOGY NEEDS IN INDONESIA (continue..) Avoiding forest burning, avoiding deforestation, forest conservation and reforestation, etc. Composting of agricultural waste, manure management, etc. Landfill management to avoid methane release Ocean Sequestration Technology for water resources management Industrial waste water treatment Industrial solid waste treatment (recovery, composting of palm free fruit bunch. Etc Other technology has already mentioned in Indonesian TNA 2001 (Identification of Less GHG Technology)

18. ENERGY BALANCE AND CARBON (C) EMISSION OF CHP PLANTS AND SEPARATE POWER AND HEAT (Existing Indonesian TNA submited to UNFCCC on 2001)

19. BASE CASE INDUSTRY INVESTMENT COST, OPERATIONAL AND MAINTENANCE COST, LIFETIME, EFFICIENCY (Existing Indonesian TNA submited to UNFCCC on 2001)

20. MITIGATION OPTIONS, TOTAL SYSTEM COST AND TOTAL CO2 RELEASED IN INDONESIA (Existing Indonesian TNA submited to UNFCCC on 2001)

21. BARRIERS AND THE INTENSITY BarriersIntensity Economic/market High Information/awareness Low Policy Low Regulatory Low Institutional Low Human Medium Technical High Infrastructure High

22. CONCLUSION Technology Mapping as derivation and enrichment from the previous Indonesian TNA of 2001 is the main goal of the Indonesian WGTT. Further the result will be used as an input to other sectors nationally and regionally. The prioritized technology is incorporated in the climate change national action plan.