CIRCULAR ECONOMY AND

INDONESIAS NDC:
CHALLENGES AND OPPORTUNITIES FOR A
SUSTAINABLE FUTURE
Circular Economy Forum
Jakarta Convention Center

12 July 2017

SATYA WIDYA YUDHA

Vice Chairman of Commission VII & Chairman of the Green Economy Caucus
The House of Representatives of the Republic of Indonesia
 CIRCULAR ECONOMY
Theoretical basis: David W. Pearce & R. Kerry Turner, 1990

Primary thesis
The current economic system does not
provide any real incentive for recycling;
almost all products; almost all products
are manufactured to be ultimately
disposed of.
Status quo: linear economy
Take, make, dispose -> WASTEFUL
The future: circular economy
Reuse, refurbish, remanufacture, recycle

NO WASTE
In 2015 the EU implemented a new Circular Economy Package, designed to
encourage the system by funding implementaAon eorts as well as seCng up
regulaAons on waste that incenAvize recycling programs.
 CIRCULAR ECONOMY
Responding to global sustainability problems

Global Household Expenditure Global Resource Needs

1970: USD7 trillion 2014: 50 billion tons

2012: USD25 trillion 2050: 130 billion ton

Global GDP (Business As Usual) Annual Raw Material Extraction
2010: -1.6% Increased 3x in the last 40 years

2030: -3.2%
Commodity Prices
Increased 3x in the last 10 years
Waste
2025: 2.2 trillion kilograms of waste
produced in urban settings alone

Climate Change & Environmental

Effects
Consistently worsening conditions from
year to year as a result of rising industrial
and household emissions
CIRCULAR ECONOMY
Fundamental and comprehensive change in economic activities

BUSINESS AS USUAL

Example of circular economy:

The Mud Jeans brand in the
Netherlands: jeans are rented
un2l outworn, then returned and
recycled and made into new
products; consumers are then
given new jeans.
 LOCAL INITIATIVES IN CIRCULAR ECONOMY
Examples of locally-based dissemination and sustainable processing

Cattle dung-powered biogas Local recyclers, Indonesia Plastic

reactor, Padang (PT Swen IT) Recyclers Association (ADUPI)

3,400 units in 243 regencies/ 400,000 tons of plastic a year are

cities in 33 provinces recycled from a total of 34
million tons of plastic
consumption
 CIRCULAR ECONOMY AND NDC
A Zero-Waste Economy to Support Reducing Emissions

INDONESIAS NDC -29% (UNCONDITIONAL)

2030
-41% (CONDITIONAL)

2010 2030 Emissions Levels Emissions ReducAons

(Million (Million Tons of CO2e)
No. Sector Million Tons of CO2e % of total BAU
Tons of
CO2e) BAU CM1 CM2 CM1 CM2 CM1 CM2
453 1,830 1,357 1,271
1 Energy 473 559 15.87 18.76
(35.1%) (61.4%) (64.3%) (67.5%)
88 296 278 263
2 Waste 18 33 0.60 1.11
(6.8%) (9.9%) (13.2%) (14%)
36 70 67 66
3 IPPU 2.6 3.6 0.09 0.12
(2.8%) (2.3%) (3.2%) (3.5%)
66 70 65 64
4 Agriculture 5 6 0.17 0.20
(5.1%) (2.3%) (3.1%) (3.4%)
647 714 344 220
5 LULUCF 370 494 12.42 16.58
(50.1%) (24%) (16.3%) (11.7%)
Total 1,290 2,980 2,111 1,884 869 1,096 29.15 36.77
CM1 = Counter Measure 1 (uncondi'onal mi2ga2on scenario)
CM2 = Counter Measure 2 (condi'onal mi2ga2on scenario)
 CIRCULAR ECONOMY AND NDC
Emissions mitigation in the waste sector: in-line with the circular economy

URBAN SOLID WASTE SECTOR

BAU CM1 CM2

MiAgaAon steps in the processing

LFG recovery LFG recovery
of solid waste, an incrase in LFG
No mi2ga2on steps. reduces CH4 from reduces CH4 from
recovery implementaAon from
0.65% to 10%. 0.65% to 10%.
2010 to 2030.

Increase in the percentage of Increase to 22% in Increase to 22% in

waste handled through No mi2ga2on steps. 2020 and 30% in 2020 and 30% in
composAng and 3 R (paper). 2030. 2030.

- Up to 3% of total
- Up to 3% of total
waste in 2020
waste in 2020
and increasing to
and increasing to
Increase in the uAlizaAon of waste 5% in 2030.
5% in 2030.
through waste-red power plants/ No mi2ga2on steps. - Development of
- Development of
RDF (Refuse Derived Fuel). waste-red
waste-red
power plants in
power plants in 7
12 ci2es
ci2es
(addi2onal)
 CIRCULAR ECONOMY AND NDC
Emissions mitigation in the power sector: in-line with the circular economy

In an ideal circular ENERGY SECTOR

economy model, all BAU CM1 CM2
acAvity is powered by
clean energy. Increase in renewables
Increase in renewables
usage and ecient
usage.
UAlizaAon of renewables technologies.
(solar, wind, and biomass/ No usage of
waste) and ecient renewables and More extensive usage
technologies in power ecient technologies. 100% penggan2an of ultra supercri2cal
generators in accordance with minyak tanah menjadi technology (44%
General ElectricaAon Plans bahan bakar gas. eciency) in coal-red
for 20162025. power plants.

Increase in use of
superecient energy
equipment (best available
0% penetra2on. 10% penetra2on. 20% penetra2on.
technology, BAT) in industry,
commerce, and residences in
2030.
Increase in use of biofuel in Increase up to 5% of Increase up to 10% of
the transportaAon sector in No increase. total energy from the total energy from the
2030. transporta2on sector. transporta2on sector.
 CIRCULAR ECONOMY AND NDC
Emissions mitigation in the IPPU sector: in-line with the circular economy

IPPU SECTOR
BAU CM1 CM2

Increasing amount of cement

Reducing clinker to cement
companies that reduce their
ra2o in the cement industry
clinker to cement
(blended cement) from 80% in
ra2o (blended cement) from
2010 to 75% in 2030.
80% in 2010 to 75% in 2030.

Ammonia industry: increase in Ammonia industry: increase in

Management of eciency through op2miza2on eciency through op2miza2on
industrial of natural gas usage (feedstock) of natural gas usage (feedstock)
No mi2ga2on in
processes and and CO2 recovery in Primary and CO2 recovery in Primary
industrial
product use Reformers. Reformers.
processes.
(IPPU) in large
industries. Other steps: Other steps:
- Steel industry to implement: - Steel industry to implement:
CO2 recovery, process CO2 recovery, process
improvement in smelters, improvement in smelters,
u2liza2on of scrap iron u2liza2on of scrap iron
- Remainder of IPPU claims - Remainder of IPPU claims
(PFCs) from CDM aluminum (PFCs) from CDM aluminum
smelters. smelters.
 POSITIVE MARKET POTENTIAL
Environmental technologies for waste and recycling

Indonesia ranks seventh overall out of 50 countries on the 2015 Top Markets
Study (TMS) with the market for environmental technologies valued at USD
6.3 billion in 2016. (International Trade Administration, 2016)
 THANK YOU

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