Central Kalimantan Marks a Milestone Towards a Green Economy Transformation

Mar 4, 2015

On Tuesday, Central Kalimantan became the first province in Indonesia to have officially initiated the application of a Green Economy Model - a key tool that can support the country’s ambitious reduction target on green house gas (GHG) emissions.

The Government of Indonesia has recently maintained its ambitious target to reduce GHG emissions by 26% by 2020. UNDP has been supporting the development of the Green Economy Model for Central Kalimantan (KT-GEM). Using a system dynamic approach, the model allows policy makers to assess the impact of development decisions from a socio-economic and environmental sustainability perspective.

KT-GEM has three new indicators to plan and track the transformation to a green economy. 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 costs caused by environmental destruction. Decent Green jobs – an indicator developed by the ILO – measures the number of green jobs created in the transition towards a green economy. GDP of the Poor measures the proportion of income that poor households derive from ecosystem services in light of their comparatively higher reliance on these services compared to ri

KT- GEM is the result of a partnership between UNDP’s Low Emission Capacity Building Programme and the United Nations Environment Programme (UNEP) with the former UKP4 (President's Delivery Unit for Development Monitoring and Oversight) and BAPPENAS. 

The Governor of Central Kalimantan, Teras Narang said that “KT-GEM may help sharpen the analysis in the development planning process, and improve the confidence of planners to select programs and activities that have the most significant impact to increase provincial GDP and peoples’ welfare”.  

“Using the model, programs will be more efficient in achieving high levels of GDP while at the same time staying within the corridor of environmental sustainability,” Teras added.

A recent study conducted by UNEP Goodwill Ambassador Pavan Sukhdev also found that around 76% of the income of the province’s rural poor is generated from ecosystem services provided by the forests. Dubbed as the ‘lungs of the world”, Central Kalimantan is one of Indonesia’s most forested provinces and home to some of the world’s richest biodiversit

UNDP Indonesia Country Director Beate Trankmann said it was important for provinces like Central Kalimantan to recognize the importance of forest protection to reduce poverty and improve the living conditions of the people who live in and near the forest.

“The destruction of ecosystems from deforestation will hit the poor hardest because they have to rely on the ecosystem for their livelihoods. We hope that this green economy model will support the promotion of economic growth that both protects the interest of the poor and preserves the natural resources,” said Trankmann.

“UNDP stands ready to continue supporting Indonesia’s transition towards greener models of development both at national and subnational level,” she added.  

Contact information
Tomi Soetjipto (suryo.tomi@undp.org)
Communication Specialist, HP 0811 888814
Puspa Wijayant (puspa.wijayanti@undp.org)
Project Coordinator LECB

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