Indonesia launches innovative tools to support Green Economy transition

Sep 3, 2014

JAKARTA (September 3, 2014) – The United Development Programme (UNDP) and the Government of Indonesia this week launched key tools developed  under the Low Emission Capacity Programme (LECB) to support the country’s reduction target on green house gas (GHG) emissions.

Indonesia has previously set a target to cut its GHG emissions by 26 % compared to ‘business as usual’ projections by 2020 and by 41 % with international assistance. The LECB is a result of partnership with BAPPENAS and UKP4 (President's Delivery Unit for Development Monitoring and Oversight).

Kuntoro Mangkusubroto, Head of UKP4 said LECB can be a critical platform to support Indonesia’s transition towards a Green Economy.

“We need an instrument that can map out and track low emission development and resource efficiency as part of our development planning process.  We also need to involve communities, including the poor in cities and rural areas as well as the coastal communities, in a coordinated manner. The LECB programme has taken initial steps towards meeting that need,” said Kuntoro.

UNDP Indonesia Country Director Beate Trankmann said that Indonesia, as one of the world’s top GHG emitters, is faced with challenges on how to sustain economic growth at 6-7 % annually while at the same time reducing the carbon footprint of its development. 

“This question is particularly pertinent in light of the fact that much of Indonesia’s economic growth is driven by the extraction of natural resources.” She added  that the poor will be the hardest-hit by the destruction of nature as their livelihoods to a large extend depend ecosystem services and agriculture.

One of the key tools developed under LECB is the Indonesian Green Economy Model (I-GEM), a system dynamic simulation model that aims to inform policy planning for the long term transition from a brown to a low carbon footprint, green economy approach.

I-GEM developed three new indicators to plan and track the transformation to a green economy model. They are Green GDP, GDP of the Poor and Decent Green Jobs. Green GDP is an alternative measure of GDP growth that accounts for the externalities caused by natural capital destruction. Decent Green jobs – developed by the ILO – measures job creation in a green economic transition. GDP of the Poor measures the proportion of income of poor households derived from ecosystem services in light of their comparatively higher reliance on these services compared to richer households.

"The work of the LECB project of UNDP in Indonesia will be significant in assisting provinces and the nation prepare for climate change impacts, by introducing metrics and models to measure Indonesia's transition towards a green economy. These metrics include 'GDP of the poor', a measure of critical rural household income dependencies on nature,” said UNEP Goodwill Ambassador,  Pavan Sukhdev.

Other tools being launched include the blueprint for the SATU DATA initiative. SATU DATA aims to improve database systems across government bodies so as to ensure data availability and integrity which is required for the monitoring of development, including the data needed for green economy indicators

Contact information

Tomi Soetjipto (suryo.tomi@undp.org)
Communication Analyst, HP 0811 888814

Puspa Wijayanti (puspa.wijayanti@undp.org)
Project Coordinator LECB

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