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1、1Catalyzing Indonesias Green Growth PotentialJakarta:Prosperity Tower IV.37,District B,SCBD Lot 28,Jl.Jend Sudirman Kavling 52-53,Jakarta(12190)IndonesiaSingapore:The Great Room,Centennial Tower,3 Temasek Ave#1B,17-28,Singapore(039190)www.acv.vcCatalyzing Indonesias Green Growth PotentialIn partners

2、hip with 2Catalyzing Indonesias Green Growth PotentialTable of contents030611162942Executive SummaryIndonesias Green Growth:Opportunity in the Face of DisruptionIndonesias Current Carbon PathwayIndonesias Green Growth OpportunityUnlocking Opportunities in the Decarbonization SpaceThe Next Steps for

3、Indonesia3Catalyzing Indonesias Green Growth PotentialExecutive Summary4Catalyzing Indonesias Green Growth PotentialIndonesia has a valuable opportunity to transition towards a lucrative green growth economy but doing so will require the participation of a broad ecosystem of innovators.This ecosyste

4、m will need to integrate startups,micro,small,and medium-sized enterprises(MSMEs),and investors and financiers to catalyze a genuine green growth economy and unlock the benefits this transition can deliver.Indonesias economy,and its people,have greatly benefited from the nations strong economic grow

5、th over the past five decades,but 50 years of rising affluence has come at a cost to the environment.Indonesia is now the fourth largest annual greenhouse gas(GHG)emitter globally by annual tons of CO2 released.With large,significant coastal populations,and a rapidly developing economy with key clim

6、ate-vulnerable sectors,Indonesia is critically exposed to the worst impacts of unchecked climate change.It is vital,therefore,that green growth is the driving force for future national development,providing an economic pathway characterized by robust but sustainable growth.A broad ecosystem of innov

7、ators will be vital in charting this path to more sustainable economic foundations,but in doing so they look set to unlock significant value for themselves and the wider economy.Collaboration and cooperation between government,public bodies,financiers and investors,and businesses of all sizes will b

8、e crucial in realizing this goal.Innovators can realize value by supporting Indonesias shift to a green growth economy with a potential value of up to US$400B by offering products and services in three key areas:Drive Green Growth strategy and green professional services.Provide products/services th

9、at clarify and guide clients Green Growth journeys;potential for the market to reach US$46B/yr by 2030 Generate Green Growth solutions.Provide products/services that optimize clients GHG intensity;potential for the market to reach US$350B/yr by 2030 Enable emission offsetting.Enable clients to gener

10、ate and trade credits for carbon offsetting;potential for the market to reach US$3.5B/yr by 2030 5Catalyzing Indonesias Green Growth PotentialCollaboration across both demand-side and supply-side stakeholders will be essential to develop Indonesias green growth maturity,helping develop a robust end-

11、to-end ecosystem to support this transition.On the demand side,individuals and businesses should stimulate demand for green growth offerings,including products and services,carbon credits,green financing,and decarbonization solutions.On the supply side,the national provision of these offerings must

12、be equally robust.Collaboration across all parties will be critical to developing the two engines of this green transition.Fully realizing these opportunities will require a conducive national ecosystem enabled by three essential pillars:Building green talent.Build and nurture a local talent pool th

13、at has the necessary experience and expertise to drive the green growth transition forward.Boosting scale and accessibility of green financing.Boost the availability of financing for those seeking to undertake their own green growth journeys.Developing supportive regulatory framework(s).Develop effe

14、ctive and equitable regulations to guide Indonesias entire economy toward green growth behaviors.6Catalyzing Indonesias Green Growth PotentialIndonesias Green Growth:Opportunity in the Face of Disruption7Catalyzing Indonesias Green Growth PotentialIndonesia is Southeast Asias largest economy and has

15、 experienced rapid socioeconomic growth over the last 50 years of development.Indonesia boasts the fourth largest growth rate by gross domestic product(GDP)per capita of all large-and-medium-sized economies since 1968,behind only Korea,Singapore,and China,and is on track to become the worlds fourth-

16、largest economy by 2050 according to research by the International Energy Agency.Indonesias rapid growth and expanding affluence now position it as the seventh-largest economy globally for purchasing power parity(PPP).This economic growth has provided substantial benefits for the people of Indonesia

17、,with an expanding and increasingly affluent population that grew from 180 million in 1990 to 280 million by 2021.Robust economic growth has lifted millions out of poverty,with the number of Indonesians living in poverty falling from 69 million in 1970equivalent to 60%of the populationto 27 million

18、by 2021less than 10%of the population.However,this rapid growth has not come without its challenges,not least the invisible impact of economic activity on the environment.Indonesia is now fourth on the list of the worlds largest annual GHG emittersbehind only China,the United States,and Indiarespons

19、ible for 4%of annual GHG emissions.Exhibit 1.Indonesias annual emissions are dominated by land use change and forestry(LUCF)and energy,which together accounted for 83%of total annual emissions in 2019.Exhibit 2.Share of worlds top-10 GHG emitters(2019,%of global GHGs)Exhibit 1020108642242218161412Sa

20、udi ArabiaCanadaIranJapanBrazilRussiaIndonesiaIndiaUnited StatesChina1 12 22 22 23 34 44 47 71212242448Catalyzing Indonesias Green Growth PotentialIndonesian GHG emissions(%2019)Exhibit 2G20 members carbon intensity of electricity(grams CO2e/kWh,2021)Exhibit 3LUCF.Accounted for roughly half of total

21、 annual GHG emissions in 2019,driven by deforestation,forest degradation,and forest and peat fires.While Indonesias LUCF emissions footprint is substantialaccounting for 58%of total global LUCF emissionsit also reflects Indonesias vast natural resources and potential to develop nature-based solution

22、s(NBS)as a major carbon sink.Energy.Accounted for a third of total annual GHG emissions in 2019,driven predominantly by emission-heavy electricity generation,heat and steam generation for industry,and combustion of fossil fuels for transport.Indonesias heavy reliance on coal-generated power underpin

23、s a carbon-heavy power landscape,positioning it as one of the most carbon-intensive electricity supplies among peer G20 nationsbehind only South Africa and India.Exhibit 3.49%49%33%33%9%9%7%7%2%2%9%7%2%LUCFEnergyAgricultureWasteIndustrial Processes6239Catalyzing Indonesias Green Growth PotentialCont

24、inued economic growth is integral to sustaining Indonesias impressive socio-economic trajectory but doing so comes at the risk of further increasing the nations GHG emissions.The World Bank still assesses Indonesia as a lower middle-income country,with GDP per capita(PPP)equivalent to 50%of the aver

25、age for the G20 group and 20%that of OECD countries.Strong economic growth will be essential to drive GDP per capita higher over the coming decades while catering to continued population growth projected to grow at 0.74%per year to reach 323 million people by 2045.The Government of Indonesia(GoI)has

26、 set targets to drive robust economic development across both short-term and long-term strategies,designed to deliver equitable economic opportunity for a growing nation.These socio-economic goals for growth must be framed against an accelerating global climate emergency,and sustainability and green

27、 growth must be integralif the increasing demand for goods and services is not to drive Indonesias GHGburden higher.Indonesia is critically vulnerable to the impact of climate change.In a 2021 assessment of climate resilience by the Swiss Re Institute of 48 countries which together account for 90%of

28、 the global economy,Indonesia ranked last.In this analysis of the project GDP impact,Indonesias exposure to extreme weather events,and current capacity to cope with climate impacts,were deemed seriously exposed.Short-term goal.GoI projecting average GDP growth of at least 5%per year to 2025 to reduc

29、e the poverty rate below 4%.Long-term goal.GoI aspires for Indonesia to become the worlds fifth-largest economy by 2045.Indonesia stands to lose 17%40%of its GDP should global warming breach the 2C above pre-industrial levels laid out in the Paris Climate Agreement Exhibit 4.In this scenario,key sec

30、tors in Indonesia will suffer significant negative impacts.In the agricultural sector,crop yields will be significantly impacted by droughts and flooding,and labor productivity hampered by extreme heat.Indonesias valuable tourism sector would also be heavily impacted by extreme weather events.ECONOM

31、IC IMPACT10Catalyzing Indonesias Green Growth PotentialWorldJapanSouth KoreaNew ZealandHong KongChinaTaiwanIndiaIndonesiaThailandPhilippinesMalaysiaSingapore-4.2-4.2-3.2-3.2-2.7-2.7-3.7-3.7-3.8-3.8-6.6-6.6-5.2-5.2-5.7-5.7-4-4-4.9-4.9-5.4-5.4-4.8-4.8-4.9-4.9-11-11-8.4-8.4-8.5-8.5-9.7-9.7-10.1-10.1-15

32、.1-15.1-14.8-14.8-17.4-17.4-16.7-16.7-19.5-19.5-21.6-21.6-22.3-22.3-20.2-20.2-13.9-13.9-9.1-9.1-9.7-9.7-10.4-10.4-16.3-16.3-18.1-18.1-22.2-22.2-27.2-27.2-30.2-30.2-33.7-33.7-35-35-36.3-36.3-35.6-35.6-18.1-18.1-12-12-12.8-12.8-13.6-13.6-21.2-21.2-23.5-23.5-29.2-29.2-35.1-35.1-39.5-39.5-43.6-43.6-43.9

33、-43.9-46.2-46.2-46.5-46.5Well-below 20C increase 2.00C increase 2.60C increase 3.20C increaseParis TargetSevere caseThe likely range of global temperature gainsCountryIndonesiaThailandMalaysiaVietnamPhilippinesMyanmarSingaporeCambodiaBruneiLaosSEA7.37%10.34%5.10%36.97%5.65%10.97%10.33%7.19%1.61%0%11

34、.86%19.0586.9761.61434.2715.8345.8060.5791.0896.806075.236RelativeTotal(Mn)Pop.living at 5 meter elevation and below2Simulating for economic loss impacts from rising temperatures in%GDP,relative to a world without climate change(00C)Exhibit 4If global warming exceeds 20C(compared to pre-industrial t

35、imes),Greenland ice will melt and sea levels will rise 7m1 Exhibit 5Indonesias economy would be severely negatively impacted by temperature rises by mid-centuryAn estimated 19 million Indonesian citizens,equivalent to 7.4%of the population,live in areas five meters or less above sea level.This puts

36、significant populations at risk should global warming rise above 2C,and trigger accelerating sea-level rises.Exhibit 5.SOCIETAL IMPACTMore than 8%of population affected6%-8%of population affected4%-6%of population affectedLess than 4%of population affectedPercentage of population living at 5m elevat

37、ion and belowLaosMyanmarThailandCambodiaVietnamPhilippinesBruneiMalaysiaSingaporeIndonesia11Catalyzing Indonesias Green Growth PotentialIndonesias Current Carbon Pathway12Catalyzing Indonesias Green Growth Potential2019BAUCM1CM2636636166916691311131112231223120120296296256256253253595969696363464610

38、5105120120110110108108925925714714214214-15-15Indonesia is already taking important steps to enhance its climate response,with Enhanced Nationally Determined Contributions(ENDC)in 2022 that set out more ambitious emission-reduction targets to 2030.Exhibit 6.These include an unconditional pledge(CM1)

39、to limit total GHG emissions to 1,954 million tons of CO2 equivalent(MtCO2e)by 2030,representing a 915 MtCO2e reduction from the projected business as usual(BAU)scenario.This enhanced commitment covers a reduction equivalent to the total annual emissions of Iran in 2019at a point when the Middle Eas

40、tern nation was ranked as theLand Use Change and Forestry(LUCF).Transform LUCF into a net carbon sink by 2030,with measurements including:Reducing emissions from deforestation and forest degradation Increasing carbon sequestration capacity of natural forests Increasing carbon sequestration of land s

41、ystems Reducing emissions from fires and peat decomposition,and bolstering law enforcement Indonesia plans to meet these expanded pledges by reducing the carbon intensity of key GHG emitting sectors,including:worlds ninth-largest annual emitter.Indonesia has pledged even more substantial conditional

42、(CM2)reductions,conditional on relevant international support and financing,to limit emissions to 1,630 MtCO2e by 2030.This would reflect an even greater 1,283 MtCO2e against BAU,equivalent to Japans total emissions in 2019 when it was ranked seventh for GHG emissions globally.The Just Energy Transi

43、tion Partnershipwhich recently announced US$20 billion funding to support Indonesias energy transitionoffers a compelling example of the role global collaboration could play in funding Indonesias sustainable transition.Indonesian GHG emissions(MtCO2e)Exhibit 6ENDC emission scenarios by 2030-15108110

44、1201051201,6301,9542,868-32%-43%1,845EnergyWasteIndustrial Processes AgricultureLand UseCM1=Counter Measure(unconditional mitigation scenario)CM2=Counter Measure(conditional mitigation)13Catalyzing Indonesias Green Growth Potential2019BAUCM1CM2Energy and transportation.Improve sustainability of ener

45、gy and transportation by:Shifting the energy mix away from GHG-intensive fossil fuels such as coal,and towards renewable and low-carbon energy sources Aim to increase renewable share of the energy mix from 13.5%in 2021 to at least 23%by 2025,and 31%by 2050,with the recent Indonesia Just Energy Trans

46、ition Partnership (JET-P)targeting 34%renewables by 2030 Accelerate adoption of EVs in road transportation Waste Management.Enhance sustainability of the waste sector by:Developing a comprehensive strategy to improve policy and institutional capacity at the local level Enhancing management capacity

47、of urban wastewater Reducing landfill waste by promoting the reduce,reuse,recycle approach Utilize waste and garbage in energy productionThe scale of Indonesias combined CM1 and CM2 emission-reduction targets is considerable,particularly given the strong projected economic growth Indonesia is expect

48、ed to deliver by 2030,with significant implications around the need to decouple carbon emissions from growth.Assuming Indonesia delivers average GDPgrowth of 5.5%between 2021 and 2030,Indonesia will need to achieve a 40%reduction in carbon emissions per unit of GDP to meet CM1 ambitions,or a 50%redu

49、ction in carbon emissions per unit of GDP to meet CM2 ambitions over and above the business-as-usual state.Carbon Intensity of Indonesian Economy(tCO2e/$m GDP)Exhibit 71,4941,6491,018849-38%ENDC emission scenarios by 2030-49%-9%All stakeholders.The transition will require complementary support from

50、the government,businesses,financiers/investors,and consumers.Across all sectors.The transition will require action from stakeholders across all industrial and economic sectors.Of all sizes.The transition is not only the responsibility of large players.Indonesias MSME sectorrepresenting 97%employment

51、 and 60%GDPis a key contributor to Indonesias GHG emissions and must be involved in the transition.Exhibit 8.Indonesias ambitious decarbonization journey will require considerable investment to realize and will be an economy-wide effort.Sustainable,environmentally friendly growth must be the engine

52、for the next stage of Indonesias economic journey.This transition pathway must be comprehensive,and far-reaching,involving:Enterprise contribution to Indonesian employment(%)Exhibit 8Enterprise contribution to Indonesian GDP(%)35MSMEsLarge Enterprises89890 05 50 03 30 00 03 3973MSMEsLarge Enterprise

53、s38380 010100 014140 00 039396239MicroSmallMediumLarge enterprisesMicroSmallMediumLarge enterprises14Catalyzing Indonesias Green Growth PotentialIn this report,we will build on the findings of the WEF-BCG-SAP report,and zoom into Indonesias challenges and opportunities for a low-carbon green economy

54、,to understand:While this transition is vital,its essential that a green transition promotes,rather than hinders Indonesias continued robust growth,ensuring equitable,sustainable opportunities for citizens,businesses,and the economy.Key opportunities.The key opportunities presented to smaller-scale

55、ventures such as startups and MSMEs,as well as their investors and financiers,from Indonesias transition to a green growth economy.Key levers.The key levers that must be utilized to unlock the greatest possible value from these opportunities.1.setting their climate action priorities,2.embarking on t

56、heir decarbonization journey,and3.unlocking green growth opportunities.The report Accelerating Asias Advantage:A Guide to Corporate Climate Action published by the World Economic Forum(WEF)in collaboration with Boston Consulting Group(BCG)and SAP,discussed in detail Asias opportunity to accelerate c

57、limate action,and provided a corporate climate framework to guide businesses inThis central vision is why participation by a broad ecosystem of innovators is so vital to embed and sustain the changes throughout Indonesias economy.15Catalyzing Indonesias Green Growth Potential16Catalyzing Indonesias

58、Green Growth PotentialIndonesias Green Growth Opportunity 17Catalyzing Indonesias Green Growth PotentialThe value of Indonesias green growth opportunity is immense,with a total market value estimated at US$400B when combining both industry revenue and carbon offset market opportunities.That value is

59、 captured across three core opportunities for ventures seeking to drive Indonesias green growth transitionDrive Green Growth,Generate Green Growth,and Enable Emissions Offsetting.Drive Green Growth Strategy and Green Professional Services Provide products and/or services that clarify and guide clien

60、ts green growth journeys Generate Green Growth SolutionsProvide products and/or services that optimize clients GHG intensityEnable Emission Offsetting Generate and trade credits for carbon offsetting(carbon markets)Support economy to Support economy to Support economy to Up to US$46B/yr by 2030Up to

61、 US$350B/yr by 2030Up to US$3.5B/yr by 2030Optimize own emissions Optimize energy mix (e.g.,%of renewables)and storage Utilize electric vehicles/fleet Establish low-carbon processes(e.g.,industrial,operational)Optimize supplier and customer emissions (Re)design products for sustainability (Re)design

62、 supplier network for greater sustainability (Re)model waste management and prevention practices to drive green growth ambitions Establish carbon-offset projects Establish nature-based solution(NBS)offset projects(e.g.,reforestation campaigns,carbon-sequestering farming techniques,etc.)Establish hig

63、h-tech carbon capture and storage(CCS)initiatives Issue and/or trade carbon credits Build and operate carbon-trading platform Access and use carbon credit markets (compulsory and voluntary)Baseline emissions Quantify current and future carbon footprint/emissions Set green growth strategy and targets

64、 Identify and select key levers to optimise for green growth Establish governance to drive/lead green growth efforts Set emissions targets Track and report on green growth journey Monitor and course-correct progress towards targets Disclose/report on green growth journeyIndonesian players looking to

65、 transition to green growth must work to fully understand the nature and scale of their green growth journey.That means clearly comprehending what their respective green growth journey should achieve,including specific and measurable objectives,and how to achieve them.With this vision in place,playe

66、rs should look to efficientlyand in compliance will all regulatory requirementsprogress toward the objectives of that journey.As players within Indonesias economy increasingly adopt a green growth mindset,the maturing ecosystem will present a greater depth of products and services to support that vi

67、sion.These supporting services will enable players to better understand their existing and future projected emissions,including the scale and drivers of emissions.They will help playersUnravel Carbon is a Singapore-based,AI-powered enterprise platform established in 2022 that assists companies to me

68、asure,track,reduce,and report their carbon emissions,with a focus on supply-chain(scope 3)emissions.It aims to enable enterprises to decarbonize themselves,and their large ecosystems of suppliers or investments,at speed,and at scale.One example of this is a portfolio module,which can be used by inve

69、stors and financial institutions to measure their financed emissions and used as the basis for analyzing climate risk exposure.Co-founders Grace Sai and Marc Allen identified a need for a scalable product that could assist with non-financial reporting in the ESG space.Market analysis identified that

70、 carbon accounting offered the most objective and scalable metric to meet this need.Inspired by Marcs 16+year career in sustainability consulting and Graces determination to leave her four-year-old daughter a habitable world,the co-founders decided to build a solution for businesses leveraging accou

71、nting data to estimate supply-chain emissions.Unravel Carbon is now an established solutions provider enabling businesses with a software-as-a-service(SaaS)decarbonization platform to quantify supply chain emissions and generate customizedbetter define their respective green growth strategy,includin

72、g key levers,objectives,roadmap,and business requirements.Ultimately,this maturing solution landscape will enable players to track,course-correct,and report progress towards green growth goals,represented by metrics such as overall decarbonization targets.The market for providers helping drive green

73、 growth strategy and broader green professional services will be significant,with expectations it could reach US$46B by 2030.CASE STUDY:DRIVE GREEN GROWTH STRATEGY AND GREEN PROFESSIONAL SERVICES 18Catalyzing Indonesias Green Growth Potentialreduction pathways to net zero,backed by auto-generated re

74、gulatory disclosure reports to ensure business compliance.They act as sustainability experts to advise and guide businesses decarbonization strategies.Unravel Carbon also supports businesses to go deeper into their data analysis,refining supply-chain or portfolio-financed emissions estimates by supp

75、orting clients to obtain supplier or company-specific emissions data.This data-driven business ethos has seen huge interest from investors and customers,with Unravel Carbon raising a SG$10 million seeding round in Q2 2022,with the round 5X oversubscribed.The platform is now being used by customers i

76、n more than twenty countries globally,including a partnership with AC Ventures to measure and track emissions across its portfolio companies.The experience garnered by Unravel Carbon offers some important advice for founders and players looking to enter the space:Help with real-time decision-making.

77、Demand exists for technology that will enable real-time decision-making on climate and sustainability.Chief Sustainability Officers are uniquely disadvantaged in not having access to real-time data thats needed to make judgments in their roles.Platforms like Unravel can help to solve this need.Hire

78、climate experts.Secure deep climate science expertise within your team.Customers need products and/or services that are grounded in genuine climate science.Be transparent.Build audibility into your business,products,and services from day one to embed transparency from the start.Drive adoption.Buying

79、 behavior for SaaS platforms in Southeast Asia remains nascent.Ensure you take time to engage and educate customers on the value of SaaS offerings and involve them in product design and adoption.19Catalyzing Indonesias Green Growth PotentialKey Sectors and green growth solutions Examples of Indonesi

80、an startups in the sector Energy Solutions.Support economy to optimize energy mix(e.g.,an increasing share of renewables/clean energy sources)Aims to create affordable,desirable,and sustainable mobility for all by offering high-quality electric motorbikes designed for urban environments.Aims to redu

81、ce city pollution and congestion by offering safe,affordable,and sustainable electric-powered micro-mobility options(e-scooters,e-mopeds,e-bikes)to city dwellers.Aims to be the leader in sustainable and clean energy tech and solutions by assisting Indonesian companies to adopt renewable energy.Desig

82、ns,installs,operates,and maintains customers rooftop solar installations.Aims to drive energy efficiency across Southeast Asia by designing,financing,and implementing energy-saving solutions for customers projects and facilities.Waste Management Solutions.Support economy to reduce waste/adopt recycl

83、ing practicesAims to become a leader in ethical and responsible waste management solutions by optimizing individuals,communities,and companies waste management through education on and implementation of best practices.Aims to reduce food waste by providing a platform that allows local food businesse

84、s,hotels,and farms to sell their overstocked/imperfect produce to customers at a discount,avoiding edible food going to landfill.vary depending on the needs of different economic sectors,but there are already strong examples of startups generating impacts with green growth solutions across many of I

85、ndonesias high-intensity emissions sectors.The application of low-carbon technologies with a genuine impact on how we live,work,and play will be an essential catalyst of Indonesias green growth transition.The nature and scale of these solutions will GENERATE GREEN GROWTH SOLUTIONS20Catalyzing Indone

86、sias Green Growth PotentialAgriculture Solutions.Support economy to adopt and drive sustainable agricultural practices Aims to drive safe and impactful agricultural funding by enabling the public to invest in local farmers via the app.Monitors farming partners activities to ensure sustainable farmin

87、g practices are followed.Aims to connect small-scale community fishermen to the global market through technology;integrating the marine supply chain in Indonesia and providing fishermen with data-driven insights to reduce costs and carbon footprint.Aims to build a resilient and sustainable agricultu

88、re system by improving productivity and efficiency of the entire agriculture supply chain through data and technology.Indonesias Ministry for National Development Planning estimates that public and private spending,including upfront investment and operation maintenance,will reach US$350 billion a ye

89、ar by 2030 to put the nation on track to achieve the nations current 2060 net-zero ambitions.This significant spending need reflects the substantial market size for green growth solutions.Initiatives to drive these net-zero ambitions will incorporate the entire energy and waste ecosystem,including e

90、nergy efficiency,carbon capture and sequestration,low-carbon energy technologies,land-based interventions,waste management and prevention,and more.21Catalyzing Indonesias Green Growth PotentialIndonesian market;particularly Indonesian ride-sharing drivers who need longer range,greater power,and long

91、er seat space for their work.In an alternative approach to most Indonesian auto players that focus on assembly and sales/after-sales,Maka Motors adopted a vertically integrated value chain across R&D,product design,assembly,and sales/after-sales.This vertically integrated model enables them to desig

92、n and manufacture EV products tailored to the needs of the Indonesian market and allows them to have a more affordable price point compared to white-label products with similar specs(battery size,motor power)due to their more efficient cost structure.Maka Motors deals directly with the component sup

93、pliers instead of going through a design and integration partner who takes a margin,and work with suppliers directly to quickly adjust component specifications if needed in order to reduce cost while maintaining performance.Several challenges are currently faced by players such as Maka Motors in dri

94、ving EV adoption in Indonesia,including:Demand side Indonesian consumers cost sensitivity and a lower priority on environmental sustainability as buying criteria;expensive financing products for purchasing EVs;and nascent EV ecosystem supporting infrastructure such as workshops and charging stations

95、.Supply side Lack of harmonized standards such as on battery packs and charging plugs;talent especially in R&D.Maka Motors(PT Kendaraan Listrik Nusantara)is an electric vehicle(EV)enterprise founded in 2022 with the mission of accelerating EV adoption in Indonesia,starting with two-wheeler vehicles.

96、Maka Motors was co-founded by a team of motorbike enthusiasts who gained a deep understanding of the needs and pain points of ride-sharing motorbike drivers during their time at Gojek(one of Indonesias largest ride-sharing platforms).They learned that Indonesian ride-sharing motorbike drivers,and In

97、donesian motorbike drivers in general,have a high interest to switch to EVs in order to save costs on fuel but that no two-wheeler EV product currently available in the market is able to provide them with comparable performance to their current ICE bikes(in terms of driving range and motor power)whi

98、le also being at a comparable price point.Most electric two-wheelers in Indonesia are white-label products supplied from China and rebranded locally.The imported design often does not meet the needs of theCASE STUDY:22Catalyzing Indonesias Green Growth PotentialThe GoIs strong narrative on the natio

99、ns EV commitments and incentives both on the supply side(such as reduced import duties for core EV components),as well as the demand side(such as incentives for SOEs to purchase EVs,or direct subsidies to two-wheeler EV consumers),have been helpful to support EV adoption in the country.Nevertheless,

100、further collaboration is required to address the challenges still faced today,particularly on the supply side for two-wheeler EV companies who do their own R&D and develop their own IP,e.g.,providing support and incentives for companies to invest capital in production tooling(body panel molds,etc.)t

101、o manufacture their own custom design at scale.Raditya WibowoCo-founder&CEO,Maka Motorsditomaka-There is potential to accelerate the development of an end-to-end two-wheeler EV supply chain in Indonesia through an effective industrial policy that incentivizes two-wheeler EV companies to build in-hou

102、se R&D capabilities and develop their own IP.“We think that electric vehicles are key to Indonesias decarbonization journey,paving the way for a cleaner,sustainable future.To get Indonesian consumers to switch from their gasoline vehicles,EV players will have to deliver lower total cost of ownership

103、 without compromising on what consumers already get from their current gasoline vehicles:driving range,power,usability,durability,and affordability.This is what we aim to achieve at Maka Motors,and were thrilled to be part of Indonesias journey towards full electrification.23Catalyzing Indonesias Gr

104、een Growth Potential24Catalyzing Indonesias Green Growth PotentialAchieving Indonesias carbon goals will require a transformation of the domestic emissions landscape,and will be predicated on a radical transition of the nations rich forestry and land-use(LUCF)resources.Transforming LUCF from the hig

105、hest GHG-emitting sector today to a vast,net-carbon sink will offset up to 300 MtCO2e of emissions by 2050.Exhibit 10Emissions(GtCO2e)Exhibit 10Energy Agriculture LUCF IPPU Waste Total(Net)20502050204020402030203020202020CPOS scenarioCurrent policy scenario,follows unconditional NDC scenario(pre-202

106、2)LCCP scenarioLow carbon scenario compatible with Paris Agreement targetOffsetting emissions will be crucial to Indonesias green growth journey,as the nation seeks to achieve its stated ambition to reach net-zero emissions no later than 2060.Exhibit 9ENABLE EMISSIONS OFFSETTING01.02.020102020203020

107、40205020602030 AmbitionCM1 1,940 MtCO2eCM2 1,632 MtCO2eNZ Emissions GoalNet-zero 2060 or sooner2050 Emissions Goal540 MtCO2eGtCO2eHistorical EmissionsCM1 PathwayCM2 PathwayExhibit 925Catalyzing Indonesias Green Growth PotentialIndonesiaMalaysiaMyanmarThailandVietnam10321032160160106106767658580 00 0

108、0 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 0Indonesia is well-positioned to leverage this natural resource and meet the growing global demand for carbon credits.International demand for voluntary carbon credits is expected to grow rapidly from 100 MtCO2e in 2020 to 1,100 MtCO2e by 2030,equ

109、ivalent to a compound annual growth rate(CAGR)of 27%.With the worlds third-largest NBS potential,and one-fifth of the worlds cost-competitive NBS priced at under US$10/MtCO2E,Indonesia is ideally positioned to meet surging domestic and international demand for carbon credits.Exhibit 11 Given these s

110、trong fundamentals,Indonesias carbon credit market is projected to expand significantly over the coming decade,growing from 40 million tons issued in the period 20092019 to up to 140 million tons in 2030 alone.This robust growth frames a significant opportunity to generate value.Assuming a credit pr

111、ice of US$25/ton in 2030,Indonesias voluntary carbon credit mark could boast an estimated value of US$3.5 billion by the same year.Indonesia is estimated to have largest source of cost competitive NBS carbon offsets in SEA.1.2030 NBS potential listed refers to the maximum theoretical potential of th

112、ese solutions and does not necessarily account for additionality 2.Carbon credit Source:Griscom et al.2020,BCG analysis.and is currently hosting some of the largest NBS projects globallyCost competitive NBS potential,MtCO2e(20301)Exhibit 11This broader space offers numerous niche and targeted opport

113、unities for smaller ventures to generate and trade carbon credits,or facilitate others to do so,as part of a maturing domestic carbon credit ecosystem.5820%of worlds supplyRimba Raya4 mn cc2/year+largest orangutan sanctuaryKatingan Mentaya7 mn cc2/year,largest forest&peatland projectSumatra Merang1.

114、5 mn cc2/yearFairatmos is an Indonesian-based,climate-tech venture founded in 2022 that helps developers of carbon mitigation projects establish their businesses and gain access to carbon markets.Its objective is to democratize and unlock wider access to carbon markets.The founder,Natalia Rialucky M

115、arsudi,was inspired to launch Fairatmos due to a perceived lack of climate mitigation funding reaching those communities that needed it mostsmall-holder farmers and communities that could actively mitigate climate change through carbon sequestration projects.Fairatmos delivers on this goal through t

116、he provision of four key technology platforms:CASE STUDY:Fairatmos is now working with over 80 communities and companies across Indonesia,with carbon sequestration projects covering 2 million hectares of land.The company has had to address several major challenges to achieve this scale.That includes

117、 navigating complex regulations which can demotivate developers or investors engaging with the space,as well as challenges in sourcing the requisite talent with experience in carbon accounting and estimationfacing the sought-after intersection of technology,coding,and climate.Sourcing appropriate da

118、ta also remains a challenge,with key resources such as GoI mangrove and peat maps no longer publicly accessible.Fairatmos experience building out solutions in this space provides insight on two key lessons for founders and players:Digital pre-FS tool to assess project feasibility,including carbon po

119、tential and key risks Expert network to understand technical and market considerations of setting up GHG sequestration projects Fundraising platform to fund projects Carbon credit marketplace to trade carbon credits generated from projectsShowcase your tech.Clearly demonstrating how your solutions p

120、ractically help developers and communities,and how they can scale,is key to winning customers.Go together.The climate-tech space is not a winner-takes-all market.It will be impossible to survive without support from others in the ecosystem.Players should look to join with an open and collaborative m

121、indset to unlock shared value.26Catalyzing Indonesias Green Growth PotentialKoltiva is an Indonesian-Swiss agritech start-up founded in 2013 with a vision to be the worldsleading technology company in building ethical,transparent,and sustainable supply chains.Koltiva works with some of the worlds le

122、ading multinational companies and over 1,000,000 mostly smallholder farmers across 52 countries and 47 different commodities to improve the integrity of agricultural supply chains and deliver insights to farmers that enhance their productivity.Koltiva offers a suite of end-to-end solutions for all s

123、upply chain actors,including:CASE STUDY:Koltiva has had to address varying levels of climate literacy amongst their stakeholders,from well-resourced corporate sustainability divisions right down to smallholder farmers with limited business and scientific acumen.Developing this understanding is one o

124、f the areas where Koltiva has had the biggest impact on the lives of their smallholderpartners,helping them to understand basic business practices and improve buying,selling and cultivation approaches to improve their annual income.Koltiva has had to take a proactive approach to develop these capabi

125、lities,building basic trainingapplications and deploying a network of field agents to reach beyond the bounds of reliable internet access.Traders and producers often operate on low margins and will need to see benefits from the adoption of green practices to prioritize green action.A clear,transpare

126、nt supply chain like that fostered by Koltiva helps to provide these signals,communicating consumer and civil society pressure throughthe supply chain and incentivizing producers to adopt sustainable practices.KoltiTrace:An integrated multi-crop platform for businesses and producers that enablestrac

127、eability solutions to provide transparency from seed to table.KoltiPay:A responsible digital finance platform that offers cashless payments,loans,savings,micro-insurance,and bill payments.KoltiTrade:Distribution of agricultural inputs and single-origin crop tradingKoltiSkills:Skills development and

128、professional services,providing boots on the ground forfarming support and carbon monitoring.27Catalyzing Indonesias Green Growth PotentialAt Koltiva,we understand the urgent need to tackle the worlds environmental challenges,and we recognize our responsibility to lead the way toward a sustainable f

129、uture.We take immense pride in showcasing our unwavering commitment to fostering a green economy and reducing carbon emissions in Indonesia.Through our end-to-end technology ecosystem and extension service with our field experts and agronomist teams,we drive environmental preservation,biodiversity,c

130、limate-smart agriculture,ethical sourcing,and empower rural communities through financial and digital literacy.Manfred BorerCo-founder&CEO,K“28Catalyzing Indonesias Green Growth PotentialUnlocking Opportunities in the Decarbonization Space30Catalyzing Indonesias Green Growth PotentialIndonesias tran

131、sition to a green growth economy will be vast and complex.Through direct interviews with green start-ups as well as insights from a Carbon Circle forum held by the Paloma Sjahrir Foundation,Ecoxyztem and P4G Exhibit 12 with key Indonesian green growth stakeholders,three key enablers were identified

132、to support Indonesias green transition and the innovators that will drive it forward.These enablers are building green talent,developing supportive regulatory frameworks,and boosting the scale and accessibility of green funding.Exhibit 13 Building Green TalentBoosting Scale&Accessibility of Green Fu

133、ndingDeveloping Supportive Regulatory FrameworkPaloma Sjahrir Foundation is a Non-Profit Organisation founded in 2022 by Pandu Sjahrir and Ratna Kartadjoemena,aiming to build a better ecosystem for impact startups.PSF helps these startups grow and scale by connecting them with strategic partners and

134、 investors.Ecoxyztem is a venture builder for climate tech startups in Indonesia.They aim to enable ecopreneur to solve climate challenges at scale by providing early-stage startups with continuous involvement and support as it is called“Co-Founder as a service”to focus on building and scaling up th

135、eir impactful and profitable business.P4G-Partnering for Green Growth and the Global Goal 2030-accelerates pioneering market-based partnerships to build sustainable and resilient economies.They invest in impact to deliver inclusive and tangible solutions to build back better and greener to meet the

136、United Nations Sustainable Development Goals and the Paris Agreement.Enabled Green Growth EcosystemExhibit 12Exhibit 1331Catalyzing Indonesias Green Growth PotentialIndonesia faces a significant challenge around access to available and suitable talent.A 2019 report by RGF noted that around 50%of Ind

137、onesian employers across 10 sectors faced a notable talent shortage.This talent shortage is particularly acute in the startup space,with the GoI estimating that the nation needs nine million tech talents by 2030 to support Indonesias growing digital economy.This represents a ten-fold increase on the

138、 900,000 advanced digital talent workers that called Indonesia home as of 2020.Exhibit 14 Uses more advanced analytical skills and theoretical knowledge.This level of skills is typically required in occupations with a high level of ICT intensity,for example,artificial intelligence specialistUses a r

139、ange of digital technologies that are related to their occupations.This level of skills is typically required in middle-level occupations,for example,journalists should be able to use digital tools to collect,search,and analyze informationCan conduct simple tasks using simple digital technologies fo

140、r non-job-specific occupations,for example,Microsoft office,google chrome for browsing,and emailNot familiar with using simple digital technology or has low exposure to digital technologyCategoryWorkforce DescriptionAdvance SkilledIntermediate SkilledBasic SkilledUnskilledDigital Skilling of Indones

141、ias Workforce(2020)Exhibit 146767525218180.90.9Unskilled Basic Intermediate Advanced67.0M(49%)52.0M(38%)18.0M(13%)137.9M(100%)0.9M(1%)BUILDING GREEN TALENTGreen startups face an even bigger hurdle in achieving their workforce goals,with participants in the Carbon Circle forum noting the knowledge ga

142、p and shortage of expertise in Indonesia as one of their major challenges.Sourcing talent with a combination of tech,industry,and climate expertise is a particular barrier in Indonesias emerging green growth space.Indonesian fishery industry e-commerce platform Aruna offers a focused example of this

143、 difficultyrequiring talent with data science,fishery industry,and climate science rolled into onea rare mix to source globally,and even more difficult in a relatively nascent domestic talent marketplace.As a result of this,top talent remains in high demand and low availability,making it difficult f

144、or green startups to attract,and ultimately retain relevant much-needed talent.Indonesia could go some way to alleviating this issue by better attracting skilled foreign workers,but there remain notable hurdles including language barriers,complex and restrictive application processes,and political o

145、r legacy workforce oppositionthe latter more focused on upskilling and retaining talent or attracting back diaspora Indonesian talent.The GoI is implementing a number of flagship policies to develop the local tech talent workforce,recently establishing the National Talent Management(MTN)body.A key o

146、bjective for MTN is to develop and retain talent in the research and development sector,with a target of increasing the ratio of human resources in science and technology per one million population and supporting the talent to gain international recognition.While this is an encouraging step,this pla

147、n is targeted at developing future talent in the medium and long term.In the short term,public and private sector stakeholders must collaborate to understand how to attract,train,and retain top talent today.There are four key levers that should be explored to deliver on this need:Develop focused tra

148、ining programs.Formal,vocational,and on-the-job training programs should be developed,focused on upskilling Indonesias workforce for success in the green startup,tech,and venture spaces,including targeted technical training and upskilling of English language skills that underpin global tech literatu

149、re and learning.Build out access to infrastructure.Building greater access to tech infrastructure such as IT infrastructure,internet,and access to electricity,to enable Indonesias people to access digital networks,participate in the digital economy ecosystem,and learn vital tech skills.Attract Indon

150、esian talent back to the domestic workforce.Attract back top Indonesian talent working overseas in the green tech/venture space.Engage with the diaspora to build awareness and interest in Indonesias green growth opportunities,while establishing effective incentives for returning Indonesiansincluding

151、 residence permits for foreign family members upon return.Improve international ease-of-access.Improve ease of access for foreign workers seeking roles in Indonesia,helping plug acute skills gaps while enabling valuable knowledge transfer.32Catalyzing Indonesias Green Growth PotentialIndonesian busi

152、nesses will need to invest to transition to green growth models.It is therefore imperative that cost-effective financing is available and accessible for businesses of all sizes to fund this transition.Feedback from the Carbon Circles forum reflected this concern,highlighting regulatory uncertainty,a

153、s well as a lack of integration of climate initiatives within the Indonesian industrial supply chain which hinders the process of developing projects and finding customers.The GoI has already recognized and is actively looking to address this need.In 2019,Indonesias central bank joined the Network f

154、or Greening the Financial System(NGFS)a global network of 114 central banks and financial supervisors that aims to define,promote,and contribute to the development of green finance.Indonesias Financial Services Authority(OJK)has also developed its own sustainable finance roadmaps,with the latest ite

155、ration(Phase 2,20212025)aimed at making sustainable finance the new normal in Indonesias financial services sector.While Indonesias green financing sector has shown signs of encouraging growth in recent years,the OJK highlights three key barriers impinging on future growthlack of supply,lack of dema

156、nd,and lack of standards.Exhibit 15Lack of SupplyLack of DemandLack of StandardsLimited understanding&participation of financial industry players in green financing;viewed as cost centerLimited awareness of businesses to undertake sustainability projects&utilize green financingAbsence of commonly-ag

157、reed ESG standards&taxonomy,hindering risk assessment&investment in green financing/initiativesBOOSTING SCALE AND ACCESSIBILITY OF GREEN FUNDINGExhibit 1533Catalyzing Indonesias Green Growth PotentialOvercoming these barriers will require policymakers,investors and financiers,and businesses to play

158、a role in developing Indonesias green finance ecosystem,collaborating across four key levers:Improve awareness and education.Improve awareness and education of all market participants on the value and impacts of green financing activities,including potential future leaders.Adopt and implement clear

159、and consistent standards.Adopt clear and consistent standards and taxonomy around green investment and financing,building clarity into the space.OJKs Indonesia Taxonomy Edition 1,released in January 2022,was a welcome development in this regard,with the aim of guiding policy and practices underpinni

160、ng the green finance system.Build ESG into risk management.Build environmental,social,and governance(ESG)into risk management assessment and practice.Co-create green financing products and services.Co-create cost-effective green financing products and services that hold significant dormant demand.Fo

161、r example,Indonesia was the first country to issue a sovereign green sukuk,or Sharia-compliant green bond,in 2018,and the first to issue a retail green bond via retail green sukuk issuance in 2019.34Catalyzing Indonesias Green Growth PotentialPolicymakers must provide Indonesian businesses,investors

162、 and financiers,and the public with robust regulatory frameworks that guide attitudes and behaviors if it is to drive a true green growth transition.Ensuring a just transition will be vital to steering this change,unlocking a fair,equitable economic transformation that delivers value for all stakeho

163、lders and communities.Indonesias Enhanced Nationally Determined Contributions(ENDC),submitted in 2022 under the United Nations Framework Convention on Climate Change,highlights“greening of the economy in a way that is as fair and inclusive as possible to everyone concerned,creating decent work oppor

164、tunities and leaving no one behind.”The policies and frameworks established by the GoI to action this vision must therefore be(1)comprehensive in driving green growth across the economy,and(2)considerate of the interests of,and impacts on,all stakeholders involved in the transitioneconomic,social,an

165、d environmental.Indonesias green policy landscape is broad,but opportunity still exists to boost policy coverage further,particularly in the emissions-intensive electricity and heat sector.Comparing the coverage of Indonesias green policy allocation per sector against G20 peers reveals both areas of

166、 strength and opportunities for growth.Exhibit 16 DEVELOPING A SUPPORTIVE REGULATORY FRAMEWORKCOMPREHENSIVE IN DRIVING GREEN GROWTH THROUGH THE ECONOMY 35Catalyzing Indonesias Green Growth Potential36Catalyzing Indonesias Green Growth PotentialPolicy coverage per sector-IndonesiaKey current GHG emit

167、ting sectorBroad supportive policy on climate strategy(including coordinating body),GHG reduction targets&decarbonizing technologiesLack/insufficiency of supportive policy on reduction of fossil fuel subsidiesSupportive policy on green agri-practices/products,incl incentives to reduce deforestation,

168、drive reforestation/afforestation&reduce CH from agricultureLack/insufficiency of supportive policy incentivizing reduction of CO2 or N2O emissions from agricultural practicesSupportive policy on energy efficiency(vehicle emission standards),renewables adoption(biofuel switch)&fuel/emissions taxesLa

169、ck/insufficiency of supportive policy on urban planning&infrastructure investmentSupportive renewables policies-energy target for electricity sector,renewable support schemes(19 related policies)&grid infrastructure dev.&electric storageLack/insufficiency of supportive policy on overarching carbon p

170、ricing scheme/taxes,coal/oil phase-out&adoption of CCS technologySupportive policy on energy efficiency(energy efficiency in industrial production,energy reporting&audits,performance&equipment standards)Lack/insufficiency of supportive policy on overarching carbon pricing scheme/emissions caps/taxes

171、&low-carbon tech(e.g.,CCS,CO2 sequestration)Supportive policy on green urban planning strategies,green building codes/standards,&green performance/efficiency standards for equipment/appliances Lack/insufficiency of supportive policy on renewables adoption&energy taxesGreater coverage than G20 avg.Eq

172、ual coverage to G20 avg.Lesser coverage than G20 avg.Key future GHG emitting sectorIndustryVeryPoorPoorFairGoodVeryGoodG20BuildingVeryPoorPoorFairGoodVeryGoodG20General(Cross-Sectoral)VeryPoorPoorFairGoodVeryGoodG20Agriculture&ForestryVeryPoorPoorFairGoodVeryGoodG20Electricity&HeatVeryPoorPoorFairGo

173、odVeryGoodG20Land TransportVeryPoorPoorFairGoodVeryGoodG20+-Avg.policy coverage per sector of G20 countries(excl.EU&Indonesia)G20VeryPoorPoorFairGoodVeryGoodExhibit 1637Catalyzing Indonesias Green Growth PotentialAreas of strength.Indonesia boasts a number of areas of strength when compared against

174、the policies of G20 peers,with greater or equal policy coverage for:Opportunities for growth.Compared to its G20 peers,Indonesia has less depth in policy coverage for three key areas of electricity and heat,industry,and buildings,providing opportunities for future impact.The GoI has stated its inten

175、t to drive a just transition that considers the interest of all stakeholders,and this will be vital in embedding a sustained,and sustainable,green growth economy.There are no one-size-fits-all solutions for the green transitiona wide variety of options adapted to local nuances will be required,with

176、far-reaching consequences across the economy,society,and environment.Exhibit 17 CONSIDER THE INTEREST OF ALL STAKEHOLDERS General policies.These policies provide framing for,or enable the implementation of,other sectoral policies.They offer essential cross-sectoral and sector-agnostic policy support

177、 fundamental to setting overarching,economy-wide-green transition strategies.Still some notable policy gaps around the removal of fossil-fuel subsidies.Agriculture and forestry.These policies aim to increase sustainable agricultural practices and improve forest management.This policy area is particu

178、larly important due to the significant role LUCF will play in Indonesias net-zero journey.Land transportation.These policies relate to all modes of land transport and infrastructure programs that might reduce transport needs,for instance,urban planning.This area is significant as Indonesias transpor

179、t sector is a key GHG emitter,responsible for almost a quarter(24%)of annual emissions as of 2019.Electricity and heat.Boosting policy coverage in areas of electricity and heat represents Indonesias most significant opportunity to drive forward positive carbon goals.The sector accounted for a third(

180、33%)of Indonesias GHG emissions in 2019 and remains a major contributor to national annual emissions.Indonesias expanding economy and growing middle-class demographic are projected to further drive up demand in coming years.Industry,and buildings.The lack of robust policy around carbon pricing,renew

181、able energy adoption,and energy taxes creates opportunities within the industry and the building sectors.While this is an opportunity that should be addressed,these are lesser levers than the more significant electricity and heat industry,with industry and buildings contributing just 2%of GHG emissi

182、ons each in 2019.38Catalyzing Indonesias Green Growth PotentialUnique insights into complexity of Just Transition issues Exhibit 17Construction of hydropower plantFlooding leading to loss of biodiversityConstruction of hydropower plant for clean energyJobs and investment generatedIncreased flooding

183、riskImpact on livelihood due to water contamination and fisheries decline WorkersCommunityNon-exhaustiveClimate funding&allocationSpend on mitigation or adaption?CO2 tax to raise climate fundsPrices rise,affecting the low-incomeGovtBusinessCommunityAfforestation for carbon creditsPreviously agricult

184、ural land afforested for carbon credits projectLoss of jobs leading to long term economic impactUpskilling/reskilling required for farmers to engage in non-farm employmentReduction in agricultural activity&exports and associated tax revenuesAble to buy offsets to help meet net zero targets and incen

185、tivize conservationNation&GovtBusinessCommunityWorkersShift away from fossil fuelsLoss of jobs from coal phaseout mitigated by replacing with solarHowever,site may not be most optimal for solar production&jobs may not be directly replacedLess pollution and carbon emissionsJobs help maintain economyS

186、olar requires large area may lead to deforestationDeforestation impacts livelihood of communities&removes carbon sinkWorkersCommunityAdapting to rising sea levels Seawall built&land reclaimed to protect against sea level rise,however with adverse impact on marine ecosystem Safeguarding local communi

187、ties and businesses Higher tax burden to fund seawall constructionTemporary job creation for seawall/land reclamation projects Impacted marine system subsequently impacts livelihood of fishing communityGovtCommunityWorkersBusinessPositive impact Negative impact Neutral39Catalyzing Indonesias Green G

188、rowth PotentialAs a result,the GoIs policies must be made with a clear understanding of how these far-reaching consequences will impact a broad variety of stakeholders,framed by a mindset that seeks tomitigate the holistic,short-and long-term harms to businesses,communities,and citizens.Indonesian p

189、olicymakers have a variety of levers that may be utilized to drive a just transition,with a number of examples from markets around the world.Exhibit 18 Improve gender equality in Just Transition through targeted policies Spain includes gender provisions in its national Just Transition StrategyProvid

190、e short term social security Australia provided climate transition funds for Victorias coal plant closureMitigate mid-long term structural unemployment India provided tax incentives for new developments and job opportunitiesDiversify economic opportunities in impacted region Poland turned coal minin

191、g town into a special economic zone through investments and tax incentivesFacilitate transition planning&social dialogue with stakeholders Canada created Just Transition Task ForceEnact progresive carbon pricing regulations Swedens carbon tax provided subsidies to households to lower financial impac

192、tInvest in adaptation projects to safeguard livelihoods of at-risk groups Niger govt invested in promoting climate-smart agriculture and sustainable land mgmt.to protect local farmersProvide incentives to shift consumption towards green products and services Kenya increased investments with high foc

193、us on renewable energy to improve electrification rateCreate public-private setup for sustainable infrastructure Temasek,HSBC,Clifford Capital&ADB established debt financing platform to support sustainable infrastructure projects in SEA to fight climate changeProviding workers&communities with new o

194、pportunitiesProtecting disadvantaged,at-risk groups from rising costsExhibit 18Policies and regulations Public fund Government Incentives Stakeholder Collaboration/PartnershipsEfforts to move forward with Indonesias Just Transition should include the strategic introduction of key policies for busine

195、sses,investors,and the public.Developing policies that encourage businesses to adopt a green growth mindset is vital.Particular attention should be paid to implementing policies that drive green growth in the key emissions-intensive sectors such as LUCF,and those projected to drive increasing GHG em

196、issions such as energy,power,and heat.Enact climate legislation with Just Transition elements in funding The US IRA includes JT provisions for project developmentSet up Just Transition fund for climate action The EU setup a Just Transition Mechanism to alleviate socioeconomic impacts of transitionIs

197、sue sovereign green bonds to raise funding for Just Transition The UK govt is utilizing green gilts to support Just TransitionSet up funding mechanism specifically for climate adaptation Indian govt set up National Adaptation Fund for Climate Change to support adaptation measuresEnable greater capit

198、al flow to emerging markets South Africa is partnering with developed states to drive effortsSet sectoral policies to protect land use and biodiversity Malaysian govt pledged to maintain at least 50%landmass as forestProvide technical support to drive policy success Nepal govt published hydro EIA ma

199、nual to guide EIA report prepProvide direct investment or subsidies to drive policy success To avoid deforestation,Indian govt subsidized cost of wasteland to be used for solar developmentEngage the public for holistic decision making Chinese govt promoted public consultation by including affected c

200、ommunity in decision making to ensure sustainable hydro projectsEnsuring Green Growth financing supports Just TransitionMitigating negative impacts of Green Growth on environmentPolicies and regulations Public fund Government Incentives Stakeholder Collaboration/PartnershipsPOLICY FOR BUSINESS40Cata

201、lyzing Indonesias Green Growth PotentialClarity in the space.The policy should provide investors and financiers with certainty on green assets and activities,as well as how to incorporate ESG into investment decisions.OJKs Indonesia Green Taxonomy Edition 1 is a positive step,but the guidance does r

202、equire further development.Drive disclosure.The policy should mandate climate-related financial disclosures to catalyze the greening of portfolios through enhanced scrutiny from the public and investors.The Task Force on Climate-Related Financial Disclosure(TCFD)recommends disclosure on:The policy s

203、hould be developed to encourage and embed green finance and investment,improving both clarity and transparency for players.Policymakers should develop policies that positively shift public attitudes and behavior toward the adoption of green products and services,such as proving evidence-based guidan

204、ce on carbon market policies and practices in Indonesia.Policies should also be designed to align with an equitable just transition,ensuring those at risk of being left behindsuch as workers in legacy high-emission industriesare supported to benefit from the transition.POLICY FOR THE PUBLIC1.governa

205、nce around climate risks and opportunities,2.actual and potential impacts of climate-related risks and opportunities on strategy and financial planning,3.approach to identifying,assessing,and managing climate-related risks,and 4.metrics and targets used to assess and manage relevant climate-related

206、risks and opportunities.POLICY FOR INVESTORS41Catalyzing Indonesias Green Growth Potential42Catalyzing Indonesias Green Growth PotentialThe next steps for Indonesia 43Catalyzing Indonesias Green Growth PotentialThis transition will be catalyzed by an ecosystem of innovators that support Indonesias b

207、usinesses and citizens to succeed,and empower stakeholders to successfully undertake their own green growth journeys.A robust and maturing ecosystem of innovators will be fundamental in driving this transition forward.This will necessitate collaboration across a broad group of stakeholdersgovernment

208、,public,financiers and investors,and businesseswith a diverse range of roles in developing the demand and supply drivers of a sustained green growth transition.Exhibit 19 Realizing this vision will not only help unlock equitable economic opportunities for Indonesia but be pivotal in enabling the nat

209、ion to achieve its net-zero goals.Indonesia is presented with an opportunity for a generational shift,transitioning to a green growth economy where sustainability and robust economic growth are mutually reinforcing.44Catalyzing Indonesias Green Growth PotentialStimulate economy-wide demand for susta

210、inable products&services Create policy that incentivizes Indonesias businesses,financiers/investors&public to adopt Green Growth practices&behavioursMake decision to“Go Green”Individual consumer decisions matter -whenever feasible,consumer should opt for sustainable goods&services to drive demand-le

211、d growth of green practices Seek support from Green Growth ecosystem to understand carbon footprint&identify ways to reduce and/or offset emissionsAlign own business around Green Growth principles&practices Decarbonize business operations,including those from affiliated third-parties(e.g.,business s

212、upply-chains,investment portfolio companies)Seek support from Green Growth ecosystem to define Green Growth strategy,reduce carbon intensity of business&offset remaining emissionsCollaborate to develop Demand&Supply-side drivers of Indonesias Green Growth transition All players should actively colla

213、borate to develop Demand&Supply-side drivers needed for the Green Growth transition,including co-creating policy and products/services(e.g.,Green Financing)All must have a seat or be represented at the table to ensure a Just TransitionEquip Indonesias economy with resources needed to deliver Green G

214、rowth transition,including:Grow Green Financing-Stimulate growth of green financing/investing ecosystem by building understanding of,&incentivizing participation in,space Build Green Talent-Grow much needed talent to drive Indonesias Green Growth transition forward(e.g.,workforce with climate&tech e

215、xperience/capabilities)Upskill in Climate&Tech Consider investing in developing climate&tech skillsets;these are crucial to drive Indonesias Green Growth transition,and are highly sought-after by the dynamic start-up&tech spaceDevelop offerings to support Green Growth across economy Develop products

216、 and/or services to enable the decarbonization journeys of others,including driving Green Growth strategy,generating Green Growth solutions&enabling emission offsettingBuild robust Green Financing ecosystem Create offerings to finance Green Growth journeys of other economic actors;add“Green Growth l

217、ens”into investment/financing decisionsGovernmentSupply-Side ActionPublicBusinessesAllFinanciers/InvestorsDemand-Side ActionExhibit 19Brendan BoardBrenda WiputeriMarc SchmidtTom DaviesProject LeaderConsultantManaging Director and PartnerProject LeaderAbout Boston Consulting Group(BCG)Boston Consulti

218、ng Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities.BCG was the pioneer in business strategy when it was founded in 1963.Today,we work closely with clients to embrace a transformational approach aimed at benefiting

219、 all stakeholdersempowering organizations to grow,build sustainable competitive advantage,and drive positive societal impact.Our diverse,global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change.BCG delivers solutions through

220、leading-edge management consulting,technology and design,and corporate and digital ventures.We work in a uniquely collaborative model across the firm and throughout all levels of the client organization,fueled by the goal of helping our clients thrive and enabling them to make the world a better 45C

221、atalyzing Indonesias Green Growth PotentialHelen WongManaging Partnerinfoacv.vcLauren BlascoPrincipal,Head OF ESGPandu SjahrirFounding PartnerAdrian LiFounder and Managing PartnerMichael SoerijadjiFounder and Managing PartnerAbout AC VenturesAC Ventures(ACV)is a top Southeast Asian venture capital f

222、irm that invests inearly-stage startups focused on Indonesia and ASEAN,with over US$500 million in assetsunder management.The firms mission is to empower entrepreneurs with more than just capital by combining operational experience,industry knowledge,deep local networks,and resources.ACVs team has invested in over 120 tech companies in the region since 2012.With a team of more than 35 professionals led by Adrian Li,Michael Soerijadji,Helen Wong,and Pandu Sjahrir,it has offices in Jakarta and Singapore.46Catalyzing Indonesias Green Growth Potential