12th Asia-Pacific Eco-Business Forum
Kawasaki, 18-19 February 2016

The Role of Industry-Academic-Government Cooperation to Develop
Eco-cities in Indonesia
Retno Gumilang Dewi and Ucok WR SiagianCenter for Research on Energy Policy
INSTITUT TEKNOLOGI BANDUNGINDONESIAOUTLINE• Eco-City• Role of Industry-Academic-Government• Cooperation of Industry-Academic-Government• Industry-Academic-Government Cooperation
Initiatives in Indonesia

1

Eco-city• Healthy human settlement,• support economic growth• Its inhabitants live in harmony with the natural environment• minimum impact on the environment• conservation of natural resources (water, energy, air, land)• zero waste system• efficient mobility infrastructure• cultural values• promote education and R&D
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Role of I-A-G

Provision/delivery of:Goods/products
Materials
Services
EnergyEmployment

Knowledge/Technology
Education
Settlement
Leisure3

I-A-G Cooperation

Industry - Academic:• R&D Partnership• Consultancy• Capacity Building
Government – Academic:• R&D Partnership• Consultancy• Capacity Building

Policy/regulation
Facilitation
Incentives

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Industry-Academic-Government Cooperation Initiatives
Ultimate objective: GHG emission reduction
Sector: Energy and Materials (when appropriate)
Framework: MRV (Measurement, Reporting, Verification)
Activity*):• Installation of energy monitoring device in industry• Development of bottom-up energy model (industry, city,region, national)*) Research Project of Institut Teknologi Bandung, Indonesia
andNational Institute of Environmental Studies, Japan
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The rationale
Past Trend of GHG Emission*) incl. peat fire

Sectors
1 Energy
2 IPPU
3 Agriculture
4 LULUCF *5 WasteTotal*) including peat fireMillion ton CO2e2000
20122985084141
961135056956197
1,001
1,454

Percentage
2000 2012
30354310851
48
67

Average annual
growth
4.5%
0.1%
1.3%
2.7%
4.0%
3.2%

Source: Draft-Indonesia 1st BUR

6Breakdown of Energy Sector Emissions
600

Residential
6%

Fugitive
4%

1%

Energy 2012
508 mill ton

Electricity
Generation
34%

Transport
26%
Industry
27%

500

Million ton CO2-eq

OthersCommercial 2%

Others400

Commercial

300

Residential
Transport

200

Industry

100

Electricity Gen.

2000

2004

2008

2012

Combustion Emissions
Major sources: coal & oilUses: Power gen., industry, transport
End-use sector: 45% from fuelburning in industry;Emissions from power generation is
accounted by building (60%) andindustry (40%) sectors.
7Final Energy Demand Projection
350
300
million TOE

250

Industry

200

Freight Transport

150

Passenger Transport
Commercial

100

Residential

500
2010 2020 2030 2040 2050
Source: Center for Research on Energy Policy - ITB

Economic growth: 5-5.5% per year
Industry energy demand growth: 4% per year (average)
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MRV Development for Industrial Energy System

Measurement, Reporting, and Verification (MRV)
Within the context of climate change arena, MRV stand for Measurement/Monitoring, Reporting and Verification of GHG emission.
The term MRV is originated from UNFCCC Decision 1/CP.13 – 2007, Bali
Action Plan:Paragraph 1 (b)(ii) of the Decision underlines the need for “…. nationallyappropriate mitigation actions by developing country Parties in thecontext of sustainable development, supported and enabled bytechnology, financing and capacity-building, in a measurable, reportableand verifiable manner.
“Measurable, Reportable, Verifiable” are now commonly abbreviated asMRV.
As indicated by the Decision, the enabling support (technology, financing andcapacity-building) for mitigation actions is also the object of MRV.
9MRV Development for Industrial Energy System

SCOPE/BOUNDARY OF EMISSION
Concerning the scope or coverage of the boundary to which the emission is accounted,
there are two types of MRV i.e.:• MRV of GHG emission level/removal at organization level and• MRV of GHG emission level/removal at national/sub-national level.
Concerning from which GHG emission reduction is resulted, there are 2 types of MRV:• MRV of GHG emission reduction due to mitigation action at project level and• MRV of GHG emission reduction resulted from the adoption of policy and measures.
Mitigation actions may be undertaken:• on voluntary basis,• to fulfil country pledge on emission reduction,• to meet country commitment to reduce GHG emission (Annex I countries) or• to trade the emission reduction in domestic or international carbon market, i.e. CDM(Clean Development Mechanism), JCM (Joint Crediting Mechanism)

10Ministerial Regulation No.15 /2013
To gather mitigation action information that is accurate, transparent, consistent and credible

MRVMeasurement• During planning and implementation of action• To determine the GHG emission level before and aftermitigation action• To monitor the achievement of mitigation action
Reporting• To document the achievement of mitigation action.
• As reference document in verification process (by MRVcommission).
Verification• To ensure that all information stated in the report is correct• Verification is carried out by verifier appointed by “projectparticipant” (the party that is responsible in mitigation action)• Requirement of verifier: Not involved in mitigation action implementation;
 Hold competency certificate (as mitigation action verifier).
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The Needs for MRV
MRV lately become important issue within the context of NAMAs (NationallyAppropriate Mitigation Actions), i.e. climate change mitigation actions that are inline with country development objective and in support to sustainabledevelopment.
The issue of MRV is still relevant and an important component in the global efforts
in climate change mitigations organized/managed under INDC (Intended
Nationally Determine Contribution).
In order to have credible claim of the GHG emission reduction achieved byimplementing all mitigation efforts, including the INDC, the reduction has to bemeasured, reported, and verified (MRV-ed).
Those are the rationale that we have to continue researches that support to thedevelopment of MRV system in all sectors, including in industrial sector.

12ITB – NIES Research on The Development of MRV System
Current
Focus area: industry sector
Activities :(a) Installation of equipment to monitor energy system performance in industry inorder to identify the potential of energy efficiencies, develop baseline emission
and identify the corresponding GHG emission reduction potential. The efficiency
may be obtained through technological intervention at an industry or throughintegration of energy system between industries in a location (i.e. industrial park).
(b) Capacity building for climate change mitigations in industry and the associated
MRV system(c) Modeling of Low Carbon Development incorporating mitigation actions in industry
sectorPrevious ITB - NIES Research Collaboration
AIM Modeling Research: ITB-IPB-NIES-Kyoto University- Extended Snapshot (ExSS) - Scope: National and Sub-National (DKI Jakarta)- End Use Model - Power, Industry, Transport, Commercial, Residential - Scope: National- CGE - National - for evaluating impact of national action plan (RAN) - Scope: National13

Framework of Modeling Approach
BOTTOM-UP AND INTEGRATED APPROACH
NATIONALPROVINCE
CITY
INDUSTRIAL PARK
PLANT

NON-INDUSTRIAL:• POWER PLANT• TRANSPORT• COMMERCIAL• RESIDENTIAL• LAND-BASEDNotes:
existing models consider the object as non spatial (national as well as sub-national)
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Indonesia Priority Industries 2015-2035
1. Food
2. Pharmaceutical, Cosmetics and Medical Equipment
3. Textile, Leather and Footwear
4. Transportation Equipment
5. Electronics and Telematics
6. Energy Generator
7. Raw material, Component, Services
8. Upstream Agroindustry
9. Basic metal and Non-Metal Quarry
10.Petroleum and Coal Based Chemicals
Source: Indonesia Industry Master Plan 2015 – 2035
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INDONESIA
INDUSTRIAL PARKSTOTAL: 232 SITES

71 OUTSIDEJAWA110193216

INDUSTRIAL PARK SELECTION

Cilegon
JAKARTA

Bekasi & Cikarang

BOGOR
BANDUNG

MODELING:
EXISTING CITY-WIDE SIMULATION: JAKARTA
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West Java Industrial Estates and Their Typical Industries

Outside Industrial Estate• Automotive (Honda, Toyota, Suzuki,Mitsubishi, etc.)• Paper Industry (Pindodeli – Karawang)• Textile raw material (Indo-Bharat Rayon, Viscose Rayon, Indorama, etc.)• Textile industry in Bandung Regency (industrial cluster)
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Energy Efficiency and Conservation Potential in Textile Industry

19Challenge / Opportunities

ITB – NIES research is not limited to the current scope/activity but
also will include:
1. Symbiosis between industries and surrounding establishments(other industries/consumers)
2. Promoting the results of currents research and relevant ideas toother industries (individual as well as to industrial park orregion)
3. Integrating the plant level information for developing LCD
Model in industrial park, city, regional (province) and nationallevel
Thank You
gelangdewi@gmail.com
ucokwrs@tm.itb.ac.id20