The New Climate Economy (NCE) Report: Growth with Equity and Mitigating Climate Change Can be Done Simultaneously

Driving Transition Towards Low-Carbon Economy

JAKARTA, 7 November 2014– The Bahasa Indonesia version of the New Climate Economy report entitled “Better Growth, Better Climate” was launched today (07/11). Indonesia is one of the commissioning countries supporting the Global Commission on the Economy and Climate, together with Norway, Sweden, United Kingdom, Columbia, South Korea and Ethiopia.

The NCE Report contains ten Global Actions Plans, of whichthreediscuss land use issues. In this context, agricultural production is key and raising productivity will bea central part of the solution.

The report calls for stopping deforestation of natural forests by 2030, restoring at least 500 million hectares of lost or degraded forests and agricultural lands by 2030, and accelerating the shift away from polluting coal fired power generation. The importance of forest governance along with a sound restructuring of the political economy of forests and peat lands is also stressed.

On behalf of the Ministry of Finance, Mr. Purwiyantonoted that “As a response to Indonesia’s goal to reduce GHG emission, the Ministry of Finance has started to promote a Green Economy Development concept through new green fiscal approaches, by managing better investment climate, supportive fiscal policies, while improving the quality of spendings, better assessing risks in financial markets, and promoting green infrastructure financings.”

H.E. Mr. Heru Prasetyo, Head of the National REDD+ Agency stated, “The result highlighted by this report echoes Indonesia’s vision of achieving a voluntary 26/41 percent emission reduction target with 7 percent of economic growth. With the technology available today, we no longer have to choose between strong economic growth and reducing climate risks. Maintaining economic growth and mitigation of climate change can be done together.”

“The example set by Indonesia affirms the core message of the New Climate Economy report; that climate change mitigation can be pursued in a way that not only does no harm to economic growth, but actually catalyses more dynamic and resilient economies,” said Satya Tripathi, Director and Executive Headof the United Nations Office for REDD+ Coordination in Indonesia (UNORCID).

The British Embassy Jakarta noted “We welcome the launch of New Climate Economy (NCE) report in Indonesia, where its availability in Bahasa Indonesia will increase its audience and its impact. At a time when many countries are struggling economically, the report presents compelling new evidence that tackling climate change can generate better economic growth. We would strongly urge the new Government to take up the report’s recommendations to keep Indonesia on the high economic growth path and to help us all achieve a global climate deal in Paris next year that puts the world on a more sustainable path.”

“The New Climate Economy report constitutes a groundbreaking contribution to the global debate on the relationship between economic growth and climate change. The report effectively reframes that debate by arguing convincingly that the overlap between what’s good for the economy and what’s good for the climate is overwhelming,” explained H.E Mr. Stig Traavik, Ambassador of Norway to Republic of Indonesia.

The report intends to provide practical reference for policy makers in three sectors: energy, forest and land-use, and cities. Senior Advisor NCE Michael Jacobs stressed that, “Government and private sectors can grow rapidly and at the same time reducing emission level by improving efficiency, assuring the availability of supporting infrastructure and drive the growth of innovations within those sectors, as well as establishing its economic structure.”

Thereport highlights the next 15 years as critical , as the global economy undergoes a deep structural transformation. “Therefore, investments made by any parties over the next 15 years, will determine the future of the world’s climate system. Indonesia’s greatest opportunity to address climate change lies in urgently tackling deforestation,” said Aida Greenbury, Managing Director of Sustainability and Stakeholder Engagement Asia Pulp and Paper.

The conclusion of the report and its specific correlation with REDD+ were highlighted in the Indonesia Discussion Paper titled “Growing through REDD+” by Agus P. Sari Deputy of Planning and Funding, National REDD+ Agency, “REDD+ enables regulatory clarity, investment in human and institutional capital, and better management of the commons- the private sector has a key role to play through bringing technical innovation and investments” Mr. Sari explained “The opportunities for generating profits through investing in REDD+ to support good governance, sustainable environment management, land and labor productivity, innovative eco-tourism modules, and strengthen rural communities, are only some of many channels for investment in Indonesia’s a new climate economy.”

Country Director for Global Green Growth Institute (GGGI) Indonesia, Anna van Paddenburg noted “In Indonesia, such growth is possible. Key is an enabling environment with consistent and conducive policies that incentivizes and reduces risks for green investors.”

*****
Note to Editor:

About the National REDD+ Agency (BP REDD+)
The National REDD+ Agency Indonesia is responsible for supporting the President of the Republic of Indonesia in coordinating, harmonizing, planning, facilitating, managing, supervising, overseeing and controlling the implementations of REDD+ in Indonesia (www.reddplus.go.id).

About UNORCID
The United Nations Office for REDD+ Coordination in Indonesia serves as a coordinating body and knowledge institution. Building on the competitive advantage and domain expertise of nine UN Partner Agencies (FAO, ILO, UNEP, UNDP, UNESCO, UNODC, UNOPS, UNU, and WFP) and numerous civil society partners, UNORCID provides decision-makers and stakeholders at the national through local levels with relevant information and tools to support successful REDD+ implementation. UNORCID was inaugurated on 17 November 2011 by the UN Secretary General.

About New Climate Economy Report
The New Climate Economy is the flagship project of the Global Commission on the Economy and Climate. It was established by Colombia, Ethiopia, Indonesia, Norway, South Korea, Sweden and the United Kingdom, as an independent initiative to examine how countries can achieve economic growth while dealing with the risks posed by climate change.

Chaired by former Mexican President Felipe Calderón and co-chaired by renowned economist Lord Nicholas Stern, the Commission comprises 24 leaders from 19 countries, including former heads of government and finance ministers, leading business people, investors, city mayors and economists. It has been advised by a panel of world-leading economist chaired by Lord Nicholas Stern and including two Nobel Laureates.

The research has been carried out by a partnership of leading global economic and policy institutes, including the World Resources Institute (Managing Partner), the Climate Policy Institute, Ethiopian Development Research Institute, Global Green Growth Institute, Indian Council for Research on International Economic Relations, London School of Economics and Political Science, the Stockholm Environment Institute and Tsinghua University. Leading international organizations such as the OECD, World Bank, International Monetary Fund and International Energy Agency have contributed to thework.

The report is be available online at www.NewClimateEconomy.report & www.reddplus.go.id

Media contact:

Sari Soegondo
Communications Team
REDD+ Agency
Phone: +61-21-2500 811
Fax: +62-21-2500 822
Mobile: +62 811 811 373
Email: sarisoegondo@gmail.com
Brittany Benson
National Coordination Officer
UNORCID
Phone: +62 21 39830091
Mobile +62 822 9135 1507
Email: brittany.benson@unorcid.org