1 Chapter I Introduction I.1 Background I.1.1 Net Zero Emission When anthropogenic removals of greenhouse gases from the atmosphere over a predetermined period balance anthropogenic inputs of greenhouse gases into the atmosphere, net zero emissions are reached. The measurement of net zero emissions when numerous greenhouse gases are present relies on the climatic metric used to compare emissions of various gases (such as global warming potential, global temperature change potential, and others, as well as the selected time horizon). Anthropogenic emissions are emissions of greenhouse gases (GHGs), precursors of GHGs and aerosols caused by human activities. These activities include the burning of fossil fuels, deforestation, land use and land-use changes (LULUC), livestock production, fertilisation, waste management and industrial processes. GHGs are the gaseous components of the atmosphere that are both naturally occurring and caused by human activity. They absorb and emit radiation at certain wavelengths that are part of the spectrum of terrestrial radiation that is released by the Earth's surface, the atmosphere, and clouds. The greenhouse effect results from this property. The main GHGs in the Earth's atmosphere are water vapor (H2O), carbon dioxide (CO2), nitrous oxide (N2O), methane (CH4), and ozone (O3). In addition, the Montreal Protocol regulates a number of completely man-made GHGs in the atmosphere, including halocarbons and other substances that include chlorine and bromine. The Kyoto Protocol addresses the greenhouse gases sulphur hexafluoride (SF6), hydrofluorocarbons (HFCs), and perfluorocarbons (PFCs) in addition to CO2, N2O, and CH4 Intergovernmental Panel on Climate Change (IPCC) (2018). Based on IPCC report on 2022, total net anthropogenic GHG emission have continued to rise during 2010 to 2019. GHG emissions on average each year increased from 2010 to 2019 compared to any preceding decade, but at a slower rate than from 2000 to 2009. Carbon dioxide (CO2) from fossil fuels and industry had the biggest absolute rise in emissions by 2019, followed by methane (CH4). 2 The fluorinated gas industry saw the strongest relative increase, beginning at low levels in 1990. Picture I.1 Global Net Anthropogenic GHG Emission. (Source: Intergovernmental Panel on Climate Change (IPCC), 2022) Picture I.2 Global Anthropogenic GHG Emission and Uncertainty by Gas. (Source: Intergovernmental Panel on Climate Change (IPCC), 2022) In the most region, as shown in the graph below, emissions have increased since 1990 but are still unevenly distributed today. Picture I.3 Global Anthropogenic GHG Emission by Region. (Source: Intergovernmental Panel on Climate Change (IPCC), 2022) 3 I.1.2 Net Zero Emission Global Journey Climate change become global issue since has worldwide impact, thus global prevention needs to be done and every county in the world should be active participate. Since early 1900, the countries have debate how to combat climate changes. These negotiations have produced several important agreements. In 1987, Montreal Protocol, though not intended to tackle climate, it was a historic environmental agreement that became a model for future diplomacy on the issue. Every country in the world eventually ratified the treaty, requirement to stop producing substances, such as chlorofluorocarbons (CFCs), that effect to the ozone layer damage. Nearly 99% of these ozone-depleting chemicals have been successfully eliminated by the procedure. Parties also agreed to minimize the production of hydrofluorocarbons (HFCs), potent greenhouse gases that contribute to climate change, later in 2016. In November 1988, the Intergovernmental Panel on Climate Change (IPCC) was established by the World Meteorological Organization (WMO) and the UN Environment Programme (UNEP). This panel will keep track of and evaluate all international research on climate change. The United Nations Framework Convention on Climate Change (UNFCCC), which was approved by 197 nations in 1992 at the Rio Earth Summit, was the first international agreement to specifically address climate change. It also established an annual platform for international discussion aimed at stabilizing the concentration of greenhouse gas emission and preparing for climate change, known as the Conference of the Parties, or COP. Berlin hosted the inaugural Conference of the Parties (COP 1) in 1995. The parties concurred that the guarantees made by the convention were "inadequate" for realizing its objectives. The Berlin Mandate establishes a process for negotiating higher obligations for developed nations, which serves as the foundation for the Kyoto Protocol. The first legally binding climate pact was the Kyoto Protocol (COP 3), which was ratified in 1997 and came into force in 2005. It required developed country to reduce emission by an average of 5 percent below the 1990 levels and established a system to monitor the progress. 4 The most important global climate agreement to date is the Paris Agreement (COP 21), which was signed in 2015. It mandated that all nations make commitments to reduce their emissions. The Nationally Determined Contributions (NDCs) that the government established as goals mostly focused on energy transformation and emission reduction measures. The Paris Agreement aims to limit the global average temperature from increasing by more than 1.5 degrees Celsius (2.7 degrees Fahrenheit) or by more than 2 degrees Celsius (3.6 degrees Fahrenheit) over preindustrial levels. Additionally, it aims to reach global net zero emissions in the second half of the century, or it is known as climate neutrality or carbon neutrality, in which greenhouse gas produces are equal to gas removal from the atmosphere. Countries are required to assess their progress toward putting the agreement into action as their own goals every five years. Picture I.4 International Net Zero Emission Milestone. (Source: Author research) I.1.3 Indonesia Journey to Net Zero Emission Indonesia understands that tackling climate change is a crucial component of any country's development strategy. The planning for both national and local growth should take climate change into account. Programs for sectoral and cross-sectoral development should have taken climate change into consideration because it is expected. In February 2007, the Government of Indonesia issued Law No. 17/2007 on the 2005-2025 National Long-Term Development Plan (RPJPN). The sixth mission mentioned in this documents is to make Indonesia wonderful and preserved by keeping the balance between utilization, sustainability, existence, and usefulness of natural resources and the environment, by protecting the function, capacity and the comfort of living in the present and the future, (1) through balanced land use for 5 settlement, (2) social economic activities and conservation; (3) augmenting the economic utilization of natural resources and environment sustainably; (4) improving the management of natural resources and the environment to support the quality of life; (5) providing the wonder and comfort of life; (6) and enhancing the preservation and utilization of biodiversity as basic capital of development. To achieve vision of sustainable development, the Government of Indonesia conclude that long-term sustainability of development will face the challenges of climate change and global warming which affect to activities and livelihood. The document became the RAN-GRK's vision statement, which is to "Realize Harmonious and Sustainable Indonesia”. The mission places special emphasis on initiatives to enhance development implementation management that can balance the use of natural resources with protecting functions as well as environmental supporting capacity through spatial planning in harmony with settlement, socio- economic, and conservation efforts; to enhance the sustainable economic use of natural resources and environment; to enhance natural resource and environmental management to support quality of life; to provide life beauty and comfort; as well as to improve maintenance and use of biodiversity as basic developmental assets. The National Action Plan on Climate Change (RAN-PI), which the Indonesian government released in November 2007, consists of the basic guidelines for a multi- sectoral coordination effort designed to jointly address the challenges of mitigation and adaptation to climate change. The National Development Planning / Bappenas Ministry released the report National Development Planning: Indonesian Response to Climate Change in December 2007. The National Medium-Term Development Plan (RPJMN) 2004- 2009 is strengthened and reinforced by this document, which also serves as a reference on how to include climate change into the development of the RPJMN 2010-2014. At the Copenhagen climate summit in 2009, Indonesia made its first commitment to reduce GHG emissions. By 2020, it promised to reduce emissions by 26% from a baseline of business as usual (BAU) and up to 41% if there was international support. 6 In order to provide specific policy advice and integrate the climate change issue into national development planning, the Ministry of National Development Planning / Bappenas also published the Indonesia Climate Change Sectoral Roadmap (ICCSR) in 2010. After one and half year since the statement of commitment to reduce emission was made, Indonesian pledge was translated into domestic policy with the National Action Plan on Greenhouse Gas Emission Reduction (RAN‐GRK) in 2011 and initiated in the Presidential Regulation Number 61 year 2011. The RAN-GRK was formulated through the involvement of expert, central, and regional government, as well as national Civil Society Organizations (CSOs) and the private sectors. On January 12, 2012, in accordance with the mandate of the Presidential Regulation Number 61 year 2011, within 3 (three months) after issuing, the Guideline on Regional Action Plan (RAD-GRK) Formulation was launched. Socialization was conducted at the provincial level to achieve national target of reducing emission and to establish various measures in order to encourage the creation of new economic activities and promote behavioural changes in the community thus creating benefits as well as helping the people to adapt to climate change. In 2015, the Government of Indonesia submitted Intended Nationally Determined Contributions (INDC) with pledged to reduce emissions from 2020 to 2030 by 29% (unconditional) up to 41% (conditional), against the 2030 business as usual scenario, an increase unconditional commitment compared to 2010 pledge of 26%. Indonesia ratified the Paris Agreement in 2016 with Law Number 16 year 2016 and submitted 1 st Nationally Determined Contributions (NDC) to United Nation Framework Convention on Climate Change (UNFCCC), reiterated the 29% target and assigned the Minister of Energy and Minerals Resources responsibility to achieve 11 percentage points of the target emissions reduction from the energy sector. The Ministry of Environment and Forestry was assigned responsibility to achieve 17 percentage points of the target emissions reduction from the agriculture, forestry and other land use (AFOLU) sector, underscoring its predominant role in Indonesia’s total GHG emissions. Next, several targets and documents have been proclaimed as a form of Indonesia's commitment to reducing carbon emissions. Low Carbon Development Indonesia 7 (LCDI) was launched in October 2017 by Ministry National Development Planning / Bappenas. This initiative aims to explicitly incorporate GHG emission reduction targets into policy planning, along with various interventions to conserve and restore natural resources. Furthermore, in 2020 the Ministry of Environment and Forestry has also prepared a document Long-term Strategy on Low Carbon and Climate Resilience 2050 (LTS-LCCR 2050) which is a long-term direction and will become a guideline in the implementation of climate change mitigation and adaptation as well as lessons on the vulnerability of global conditions to the face of the Covid pandemic -19. The Ministry of Energy and Mineral Resources has also committed to reducing greenhouse gases emissions by 314-398 million tons of CO2 in 2030. This commitment is achieved through developing renewable energy, implementing energy efficiency and energy conservation, and implementing clean energy technology. The document clearly states that Indonesia has aimed for low-carbon development with the net zero emission as ultimate goal. In July 2021, Indonesia amended their NDC and submitted it to the UN Framework Convention on Climate Change (UNFCCC).. It reiterated the unconditional target to reduce CO2 emissions by 29% in 2030 relative to a business‐as‐usual baseline and also included a reduction target of up to 41% in 2030, conditional on the provision of international assistance. The updated NDC sets targets for the shares of fuels in the energy mix: 7% share of fossil fuels in 2025, comprised of 25% oil, 30% coal and 22% gas; and by 2050 a reduction of the fossil fuel share to 69% (20% oil, 25% coal and 24% gas). The National Grand Energy Strategy is being developed by the government to incorporate the strategic planning for the energy sector with the goals outlined in the NDC. In order to attain the Nationally Determined Contribution Target and control greenhouse gas emissions in the national development, the Indonesian government has issued Presidential Regulation Number 98 year 2021. The rule specifies carbon pricing, including procedures for carbon trading, carbon taxes, and result-based payments, and acts as a legal foundation for implementing the NDC toward low carbon and climate resilience. 8 Responding mandate by Decision 1/CMA3, revisit and strengthen NDC – 2030 target, to align with Paris Agreement temperature goal by the end of 2020, Indonesia submits Enhance Nationally Determined Contributions (Enhance NDC) to the United Nation Framework Convention on Climate Change (UNFCCC) Secretariat by September 23, 2022, with increased emission reduction target from 29% in the first NDC to 31.89% unconditionally and from 41% to 43.20% for conditionally. The Enhance NDC is the nations of Indonesia's transition to its second NDC, which is aligned with the LTS-LCCR's goal of achieving net zero emissions by 2060 or earlier. Picture I.5 Indonesia Net Zero Emission Milestone. (Source: Author research) In order to achieve the 2030 NDC, Indonesia has developed strategy consist of nine programs. 1. Fostering a sense of shared commitment between the public and the government. 2. Building capacity to improve institution and human resource capabilities at all levels. 3. Creating enabling environment to engage wider stakeholder. 9 4. Creating a network and structure for collaboration to increase stakeholder synergy. 5. A single Globally Harmonized System (GHS) data policy to help the framework for implementing transparency be implemented. 6. Creating plans, strategies, and intervention programs for implementing the NDC. 7. Creating implementation guidelines for the NDC to support ministries and other government levels implement Program No. 6. 8. Implementing the NDC means putting policies, the planning and intervention program (program No. 6), and the advice created under program no. 7 into practice. 9.