Final Results Way Forward - tier.org.twapecenergy.tier.org.tw › ... › file3 › phase_5_feasibility_research.pptx.pdf · Final Results & Way Forward 50th APEC EWG Meeting 14-18

Final Results &

Way Forward

50th APEC EWG Meeting 14-18 December 2015, Honolulu, Hawaii

APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward

Overview Page 2

1)  Overview

2)  Project Background

3)  Approach and Methodology

4)  Project Target Area

5)  Key Result 1 – LCMT High Level Vision Statement

6)  Key Result 2 – LCMT BAU Scenario

7)  Key Result 3 – LCMT High Potential Low Carbon Measures

8)  Key Result 4 – LCMT Mitigation Scenario

9)  Key Result 5 – LCMT Contribution to National Policy Objectives and

Achievement of Sustainable Development Benefits

10) LCMT Investment Requirements

11)  Way Forward


Project Background Page 3

Low Carbon Model Town (LCMT) Initiative: Initiative with the goal of encouraging the creation of low-carbon communities across the APEC region, and to share best practices to make such communities a reality. Goal of Feasibility Study under LCMT Phase 5: Provide government officials and stakeholders in Bitung and North Sulawesi with valuable advice on how to design, develop and implement a low carbon development plan with measurable and repeatable outcomes. Timeline: April – November 2015 Expected Key Outcomes: 1)  Low Carbon Development Strategy (LCDS) for the SEZ Bitung 2)  Detailed Impact and Cost Report on selected Low Carbon Measures (LCMs) 3)  Implementation Roadmap


Approach and Methodology Page 4

Ø  Alignment with geographic, demographic and economic background of the LCMT target area

Ø  Alignment with the existing policy and institutional framework on (i) national, (ii) provincial, (iii) city and (iv) SEZ Bitung level

Ø  Close communication and frequent consultation with key project stakeholders (more than 20 consultations, seminars and technical trainings with the national, provincial and city level government)

Ø  Inclusion of Ms. Jacoba Malingkas Roeroe from the Provincial Development Planning Agency into the Consultant’s project team to ensure local ownership and local coordination

Ø  Approach built on international best practices and on the best

professional understanding of the Consultant’s team


Project Target Area – Special Economic Zone (SEZ) Bitung Page 5

Phase 2: 2020-2021

•  Improvement and expansion of basic infrastructure and support facilities • Expansion of residential, commercial and industry development

Phase 1: 2017 – 2019 • Basic Infrastructure Development • First residential, commercial and industrial activities

Phase 3: 2022-2023

• Development of education and training facilities

Phase 4: 2024-2028 • Development of recreational areas • Further expansion of residential and industrial areas

Phase 5: 2029-2031

• Further expansion of industrial areas


Key Result 1 - High Level Vision Statement for SEZ Bitung Page 6

The Special Economic Zone of Bitung will become a national and global model for sustainable, low carbon urban and industrial planning, and will contribute to the national goal of reducing GHG emissions by 26% by 2020 (29% by 2030) compared to a Business-as-Usual Scenario. This vision will be implemented developing the Low Carbon Model Town strategy along the following four axes: Ø  Ensure alignment with existing local and national development policies, regulatory frameworks

and institutional set-ups; Ø  Reduce energy consumption through the use of clean, green energy generation and more

energy efficient technologies and practices; Ø  Ensure an efficient and environmentally balanced management of resources through the

utilisation of the best available low carbon technologies for industry, commercial and residential areas, for solid waste and wastewater management, for forestry and land use, and for transportation;

Ø  Apply an accurate, transparent and functional monitoring, reporting and verification system

(MRV) of the GHG emissions and additional sustainable development impacts.


Key Result 2 – LCMT BAU Scenario (yearly basis) Page 7

Business As Usual Scenario: Estimates the increase in GHG emissions derived from the current development Masterplan of the SEZ Bitung (without considering the low carbon development strategy and related low carbon measures). Key Finding: Energy sector (Energy Generation; and Energy Use in the Industry, Commercial and Residential sub-sectors) will contribute more than 90% to the total GHG Emissions of the SEZ Bitung.


Key Result 3 – Selected Low Carbon Measures (LCMs) Page 8

LCMT%Target%Sectors% Sub%Sector% Type/%Technology%of%LCM% Specific%LCM%

Energy%

Energy'Generation'

Utilisation'of'Clean'Energy' 1.'Utilisation'of'Geothermal'Energy'

Grid'Solar'Energy'Generation' 2.'Use'of'Photo'Voltaic'(PV)'panels'on'buildings'

WasteBtoBEnergy'Generation' 3.'Methane'capture'and'anaerobic'digestion'(AD)'system'for'Solid'Waste'and'Wastewater'4.'Thermal'energy'generation'from'agricultural'waste'

Biomass'Thermal'Energy'Generation'

Industry'EE'in'Equipment,'Appliances,'Building'Design'and'Industry'Processes'&'Product'Use'(IPPU)'

5.'Comprehensive'EE'Program'for'the'Industry'Buildings,'Appliances'and'IPPU'

Commercial' EE'in'Equipment,'Appliances'&'Building'Design'

6.'Comprehensive'EE'Program'for'Residential'and'Commercial'Buildings'&'Appliances'Residential'

Residential' Energy'Efficiency'in'Equipment'and'Appliances'

•' Commercial'Air'Conditioning''&'Refrigeration'(AC&R)'

•' Lighting'Transportation% Shift'and'

avoid'7.'Bus'Rapid'Transit'(BRT)'8.'NonBMotorised'Transport'(NMT)'and'TransitBOrientedBDevelopment'(TOD)'

AFOLU%%Land'Use'and'Urban'Greening'

9.'Urban'Forestry'and'Urban'Greening'

Waste%Solid'Waste'and'wastewater'

Solid'Waste'Management'10.'Integrated'Solid'Waste'Management'System'and'3R'strategies'

'


Key Result 4 – LCMT Mitigation Scenario Page 9

-22%

LCMT GHG ER will potentially contribute 13% to the latest national GHG ER target set for North Sulawesi in Indonesia’s Intended Nationally Determined Contribution (INDC).

Mitigation Scenario: provides an estimation of the future GHG emissions levels in the context of the proposed Low Carbon Measures for the SEZ Bitung. Key Finding: GHG emissions can be reduced up to 22% from the SEZ Bitung Business-As-Usual scenario.


Key Result 5 – Contribution to National Policy Objectives and Achievement of Sustainable Development Benefits

Page 10

Overall LCMT SD Impacts Impact Domain Specific Impact

Environment Reduction in Air, Water and Soil Pollution Noise Reduction

Social Livelihood Health Time Savings

Growth & Development

Access to Clean and Sustainable Energy Capacity Enhancement Energy Security Education

Economic Income Generation Expenditure Reduction Job Creation

Overall LCMT Contribution to National Policy Objectives Sector Contribution

Energy

Contribution to Indonesia’s National and Provincial Action Plan to reduce GHG Emissions (INDC & RAN/RAD-GRK) Contribution to the National Energy Strategy (KEN)’s objective to increase the share of RE in the national energy mix Contribution to the National Energy Conservation Development Plan (RIKEN)’s objective to achieve Indonesia’s energy saving potential and reduced energy elasticity through energy efficiency and conservation measures.

Transportation Contribution to the national sustainable transport and urban mobility objectives AFOLU Contribution to the national objective of achieving a green and sustainable city environment Waste Contribution to the National Waste Management Strategy


LCMT Investment Requirements Page 11

Total LCMT Investment Requirements

Capital Investment for LCM implementation ~ $33,400,000

Operation & Management costs for LCDS &

LCM implementation ~ $13,800,000

Total ~ $47,200,000


Way Forward – Need for further Technical Assistance Page 12

Building the enabling framework for LCMT Implementation

EA = Enabling Activity

# Activity Budget Timeline EA1 Streamline LCDS into SEZ Masterplan 70,000 USD S1 2016 EA2 Conduct National & Sub-national Dialogue 230,000 USD S1 2016 EA3 Conduct Institutional Improvements 150,000 USD S1 2016 EA4 Implement Policy Recommendations 70,000 USD S1 2016 EA5 Conduct Detailed Capacity Needs Assessment (CNA) 130,000 USD S2 2016 EA6 Set up MRV and M&E system 350,000 USD 2016-2017 EA7 Capacity Building Programme:

1.  Technical (including MRV) 2.  Institutional 3.  Regulatory 4.  Financial

350,000 USD 125,000 USD 50,000 USD 50,000 USD

125,000 USD

2016-2017

EA8 Initiate Financial Support Programme 150,000 USD 2016-2017 EA9 Initiate PPP Support Programme 250,000 USD EA10 Establish Project Management Unit (PMU) 750,000 USD 2016-2017

TOTAL 2,500,000 USD


Way Forward Page 13

Contribution from the Local Government to support LCMT Implementation

1) Integration of the LCMT strategy into the SEZ Development Master Plan

2) Support of the LCMT implementation through adaptation/development of required policies and regulations

3) Provision of in-kind contributions to Enabling Activities (EAs) above


Way Forward Page 14

Discussion between APEC and the Government of Indonesia on further support for LCMT implementation for the SEZ Bitung during APEC Task Force Group B event in Manado on 29 November 2015.

APEC LCMT Phase 5 – SEZ Bitung, Indonesia - Final Results & Way Forward Page 15

Mr. Sanny Parengkuan Regional Secretary for Development and Economics of the Province North Sulawesi, Indonesia

“I would like to express my gratitude to APEC for making this project happen, and to South Pole Group for their work in conducting this Feasibility Study for the SEZ Bitung. I look forward to mainstream this Low Carbon Strategy into the SEZ Bitung Masterplan, and to develop the proposed Low Carbon Measures, and I hope that the international community can further support us by providing the required Technical Assistance for its implementation.”


Contact

South Pole Group Global Sustainability Solutions Graha Iskandarsya 2nd Floor Jl. Iskandarsyah 66C 12160 Jakarta Indonesia Phone: +62 217207 567 www.thesouthpolegroup.com Please send your feedback to: Paul Butarbutar, Country Manager Indonesia [email protected]

Page 16

South Pole Group Corporate Presentation

South Pole Group · 26.10.2015 Page 17


Who we are

We offer comprehensive sustainability solutions and services. We enable our customers to create value from sustainability-related activities. Our staff of 110 employees worldwide are passionate about fighting climate change.

Page 18


Developing solutions worldwide Page 19


Impact

Created 270+ projects

Saved 50 million tonnes of CO2

Measured USD 30 bn+ of investments

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Impact

Created almost 20,000 jobs

Saved 17,000+ hectares of forest

Enabled 35,000 GWh of renewable energy

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We are the experts in sustainability Page 22

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South Pole Group references Page 23

Publ

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Selected clients Page 24


Contacts

Headquarters Zurich Kimberly Gantner +41 43 501 35 50 k.gantner@ thesouthpolegroup.com

London Marco Magini +44 20 3586 1661 m.magini@ thesouthpolegroup.com

Stockholm Jens Olejak +46 8 410458 80 j.olejak@ thesouthpolegroup.com

Bangkok/Hanoi Santosh Singh +66 2 678 89 79 s.singh@ thesouthpolegroup.com

Beijing Yang Xuan +86 10 84 54 99 53 x.yang@ thesouthpolegroup.com

Hong Kong Caspar Chiquet +86 10 84 54 99 53 c.chiquet@ thesouthpolegroup.com

Addis Ababa Lars Osterwalder +251 91 279 58 17 l.osterwalder@ thesouthpolegroup.com

Melbourne Freddy Sharpe +61 402 9689 813 freddy.sharpe@ climatefriendly.com

Sydney Freddy Sharpe +61 2 9356 3600 freddy.sharpe@ climatefriendly.com

Medellín Christian Dannecker +57 4 352 4428 c.dannecker@ thesouthpolegroup.com

Mexico City Ana Terroba +52 55 55 31 90 13 a.terroba@ thesouthpolegroup.com

Jakarta Paul Butarbutar +62 21 720 75 67 p.butarbutar@ thesouthpolegroup.com

New Delhi K. Kartick +91 956 0189 991 k.kartick@ thesouthpolegroup.com

Europe & North America

Asia Africa

Australia Latin America

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San Francisco Stephen Scofield +1 415 351 84 67 s.scofield@ thesouthpolegroup.com


Overall BAU and Mitigation Scenario in Numbers

Page 26

Additional Information

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

BAU Scenario 2,997 83,884 16,666 267,004 382,002 513,766 662,291 842,414 1,054,017 1,297,110 1,571,699 1,877,793 2,211,589 2,573,127 2,962,413

OVERALL GHG ER 1,607 13,451 27,619 44,292 62,336 81,964 103,195 128,395 193,081 260,567 332,141 406,644 483,765 564,742 648,504

Mitigation Scenario 26,390 70,433 140,047 222,711 319,665 431,802 559,096 714,018 860,935 1,036,54 1,239,557 1,471,148 1,727,823 2,008,384 2,313,909

GHG ER ratio 5.7% 16.0% 16.5% 16.6% 16.3% 16.0% 15.6% 15.2% 18.3% 20.1% 21.1% 21.7% 21.9% 21.9% 21.9%


Potential Funding Sources

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Topic-Sector Financial Sources in Indonesia

Low Carbon Cities (i.e. multi-sector) APEC, AFD, WB, ADB, EU, GCF

Energy Generation (Renewable Energy) WB, ADB, USAID, JICA, AFD, UNDP-GEF, GCF, private

Energy End-Use (Energy Efficiency) WB, ADB, USAID, JICA, GCF, private

Transport WB, ADB, IDB, AusAID, JICA, AFD, GCF

AFOLU WB, ADB, GEF, USAID, GCF Waste WB, ADB, GCF

All sources listed have an ongoing portfolio of low carbon activities currently being finance in Indonesia in the sectors and topics of relevance.

Additional Information

Documents

Final Results Way Forward - tier.org.twapecenergy.tier.org.tw › ... › file3 › phase_5_feasibility_research.pptx.pdf · Final Results & Way Forward 50th APEC EWG Meeting 14-18