Low Carbon Development Initiative for Indonesia

The Low Carbon Development in Indonesia is a program to implement new climate economy and new food and land use economy in Indonesia. It will undertake systematic economy-wide assessment and provide independent and authoritative evidence on the relationship between actions that strengthen economic performance and those that reduce the risk of climate change. In addition to examining economic sectors such as in forestry, agriculture, and peat, attention will be given to the overall performance of food and land-uses systems. The program intends to identify opportunities where policy reforms, investment and business solutions could yield large multiple benefits for the economy, society and the environment. It aims to contribute to building a low carbon development in Indonesia through new climate economy at a national level and sustainable food and land use economy in selected sub-national jurisdictions of East Kalimantan, South Sumatra, and Papua/West Papua. At a national level, it will develop an investment model to inform Indonesia’s Mid-term National Development Planning (RPJMN) strategic environmental assessment and to achieve Indonesia’s global commitment to emissions reduction. The investment model will be supported by background studies for several sectors, including forestry and agriculture, that document stakeholder’s knowledge in these sectors to inform the country’s development and investment options. Moreover, it will establish science-based targets and pathways at scale to include national and sub-national levels and agreed upon by multi-stakeholders in the public and private sectors; provide business solutions that raise ambition of the private sector; and present these in action roadmaps with innovations that can mobilize financing and investments. It will also identify key policies, investments and actions needed to establish a new food and land use economy, which enhances agricultural productivity and rural livelihoods, addresses food waste, improves diets while at the same time protecting forests and biodiversity and increasing Indonesia's resilience and adaptation to climate change. Combined these will aim at providing proof points for key sectors (such as in forestry and agriculture) in specified jurisdictions (such as in East Kalimantan) where opportunities and policy reforms are likely to yield the largest economic, social and environmental impacts and co-benefits.