Developing a Nationally Appropriate Mitigation Action for the pulp and paper industry in Indonesia

Indonesia is one of the world’s highest emitters of greenhouse gases and, as an island state, is also heavily impacted by climate change. Thus the Indonesian government aims to reduce greenhouse gas emissions by 26 per cent by 2020. With added international support, a reduction of up to 41 per cent should even be possible. In order to reach this ambitious goal, the Indonesian government already started implementing comprehensive measures to adapt to climate change in its National Action Plan of 2011.

As part of the "Policy Advice for Environment and Climate Change" project (PAKLIM) in Indonesia, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) is supporting the Indonesian government in setting up and implementing a national climate strategy. One component of PAKLIM focuses on the development of so-called Nationally Appropriate Mitigation Actions (NAMAs), which should reduce the output of greenhouse gases and increase energy efficiency in various energy-intensive industrial sectors. Among these branches of industry is also the pulp and paper industry. Due to increasing demand for paper in Asia, this branch of industry is expected to see continued growth in the coming years. Currently, Indonesia is one of the ten largest producers of paper in the world.

Against this backdrop, adelphi, together with its partners Asian Management Consulting (AMC) and Perspectives, developed a specific NAMA for the Indonesian Ministry of Industry. The goal was to enable the government to retain its leading position without neglecting its national climate mitigation goals. To this end, the project team developed various possible options for emissions reduction in this branch of industry, evaluating them using a cost-benefit analysis. Moreover, various policy instruments and measures pertaining to the NAMA launch were assessed, and a Monitoring, Reporting & Verification System (MRV) has been developed to supervise the effectiveness of the measures. The process of implementing this NAMA was accompanied by continuous dialogue with all relevant stakeholders at local workshops. The results of project  is documented in a NAMA report and the NAMA Information Note. The NINO registers NAMAs at the UNFCC registry seeking international support and facilitates the matching of finance and technology and capacity-building support.