PROJECT: Indonesia Energy Sector NAMA Coordination
Project Reference: TAAS-0040
Indonesia faces distinct long-term challenges to its energy system, including the expected growth in energy demand over coming years to rates as high as 7-8% annually; the need to change the current energy mix that leaves Indonesia vulnerable to the price of imported oil due to subsidies; and the country’s commitment to substantially reducing national greenhouse gas emissions relative to business as usual.
These challenges have led to a wide range of low-carbon energy initiatives by the Government of Indonesia and its partners, including the development of National Appropriate Mitigation Action (NAMA) plans. NAMAs are actions that the Indonesian Government will take, potentially with international support, to meet its climate targets; a 26% reduction in greenhouse gas emissions through domestic efforts, increasing to 41% with international support.
Relevant government departments were tasked by the Ministry of National Planning (BAPPENAS) to identify and develop ideas for sector specific NAMAs. The Ministry of Energy and Mineral Resources (ESDM) developed a number of NAMA concepts. A CDKN supported work programme between ESDM and the Energy research Centre of the Netherlands (ECN) studied NAMAs in the energy sector and collected information and analysis to improve understanding of these actions. This was done through the development and testing of a NAMA Common Accounting Framework for Energy.
Objectives of the work programme were to:
- Provide a central and common approach to describing and tracking energy mitigation actions.
- Understand how mitigation actions are aligned with existing energy targets
- Improve the evidence available for comparing and describing mitigation actions
Moreover, the Directorate of Energy Conservation (DKE) in ESDM identified the development of a specific energy efficiency NAMA as an additional output of the work programme with ECN. This interest added the following ambition to the project
- NAMA Development: ESDM, with ECN assistance, prepares a viable and credible energy efficiency NAMA proposal that has the buy-in of key stakeholders and which tests favourably with donors for financial support
- NAMA capacity building: DKE involvement in the NAMA development process, with appropriate capacity building, allows them to ‘own’ the final proposal ready for implementation
CDKN Funding: £335,000