Towards Implementation and Beyond: Measuring the Progress of Low Carbon and Green Economy

The latest Intergovernmental Panel for Climate Change (IPCC) report published in 2022 highlighted the intensifying and more severe impact of climate change than previously expected. Climate change impacts not only threaten people’s lives through extreme weather and other climate-related disasters, but also harm species and the whole ecosystem. The report recognizes the interdependence of climate, biodiversity including ecosystem, and human societies as well as emphasizing adaptation and climate resilience not only related with and caused by climate, but also non-climatic global trends such as biodiversity loss, land and ecosystem degradation, rapid urbanization, as well as global pandemic. Within the last two years, the surging impact of climate-related crises has collided with the COVID-19 pandemic and created a multidimensional crisis which has affected every aspect of life, especially the economy. Indonesia, like many other countries, experienced economic slowdown due to the pandemic. With business as usual approach in post-covid recovery, Indonesia’s economic growth trajectory is predicted lower than the pre-pandemic situation, and therefore, it is tough for Indonesia to escape the middle income trap and achieve its long term vision by 2045. Indonesia’s effort to escape the middle income trap while at the same time addressing climate change impact should be doubled in order to recover the economy and return the trajectory back to the pre-pandemic path. To this end, the Ministry of National Development Planning / BAPPENAS established the Economic Transformation Strategy with Green Economy as one of the “game-changers” to recover better and stronger. While aligned with Indonesia G20 presidency theme “Recover Together, Recover Stronger”, the Green Economy aims to create high and inclusive economic growth, while realizing social welfare and maintaining environmental quality. The implementation of Green Economy involves the Low Carbon and Climate Resilience Development Policies as the “backbone”, the approach that shifts from Business-as-Usual activities to a more sustainable action. Simultaneously, this strategy can push Indonesia out of the middle-income trap by 2045. Moving forward, transition towards Green Economy with low carbon and climate resilience development will require a precise tool and approach in order to measure the effectiveness of Green Economy transformation progress and achievement. Therefore, formulating an index that covers not only environmental aspects, but also the national economy and people’s well-being is essential. BAPPENAS has developed a Green Economy Index consisting of 15 important indicators that reflect the progress in those three aspects, which further be classified into three pillars: environment, economy, and social. The environmental pillar consists of 5 indicators: forest cover, new and renewable energy, waste management, emission reduction, and degraded peatlands. The economic pillar comprises 6 indicators: emission intensity, energy intensity, income per capita, agricultural productivity, and labor productivity, both for industry and services. While the social pillar includes 4 indicators: mean years of schooling, life expectancy, poverty rate, and unemployment rate. Beside focusing to prevent biodiversity loss, biodiversity itself has a big potential to contribute to economic growth through bioprospecting. Bioprospecting from bioresources can be developed into commercial valuable products for pharmaceutical, food and agricultural, cosmetic and other applications from biochemical and genetic material of the biodiversity. In parallel, the effort to climate resilience development must also be implemented to support the achievement of the green economy. The study from Bappenas in 2021 shows that the implementation of climate resilience development policy in 4 (four) priority sectors can reduce potential economic loss from IDR 544 trillion to IDR 262.9 trillion (about 48.3%).

News Kosong
Empty Publication
Event Date
  • Date Start

    : 09 August 2022
  • Date End

    : 09 August 2022
Venue Info
  • Location

    :Kab. Badung.
  • Venue

    :Bali Nusa Dua Convention Center
  • Share

Survey Side Events