Jakarta is Close to Piloting the Green Economy Model

The capital city of Jakarta has expressed an interest to pilot the Indonesian Green Economy Model (I-GEM) a key tool that supports the country’s ambitious reduction target on greenhouse gas (GHG) emissions.

The Head of Regional Body for Planning (BAPPEDA) of Jakarta, Tuty Kusumawati said the Green Economy Model would help the city to improve the quality of its air and help ensure the city to improve its public infrastructure without the expense of environmental destruction.

”The Green Economy Model is in line with our goal to make Jakarta a smart city, a city that fulfills the economic needs of its citizens while at the same time equipped with robust public infrastructure that is environmentally friendly,” said Kusumawati

The Special Region of Jakarta is the first city administration in Indonesia to have initiated the piloting of the Indonesian Green Economy Model (I-GEM) and the second region to have done so after Central Kalimantan, one of Indonesia’s most forested provinces and home to some of the world’s richest biodiversity.

The Government of Indonesia has maintained its ambitious emission target to reduce GHG emissions by 26 % by 2019. The city of Jakarta has also set a target to cut GHG emissions by 30% by 2030. UNDP is supporting the development of I-GEM, a system dynamic model that allows policy makers to assess the impact of development decisions from a socio-economic and environmental sustainability perspective.

I-GEM has three new indicators to plan and track the transformation to a green economy. They are Green GDP, GDP of the Poor and Decent Green Jobs. Green GDP is an alternative measure of GDP growth that accounts for the costs caused by environmental destruction. Decent Green jobs – an indicator developed by the ILO – measures the number of green jobs created in the transition towards a green economy. GDP of the Poor measures the proportion of income that poor households derive from ecosystem services in light of their comparatively higher reliance on these services compared to richer households.

I-GEM is a result of a partnership between UNDP’s Low Emission Capacity Building Programme with the former UKP4 (President’s Delivery Unit for Development Monitoring and Oversight) and BAPPENAS.

UNDP Indonesia Country Director Beate Trankmann said it was important for large cities like Jakarta to recognize the importance of cutting emission and improve the living conditions of the urban poor, particularly those who live in areas vulnerable to climate change threats.

“As centres of innovation, leadership and resources, cities such as Jakarta can leverage their strengths to help the urban poor develop and adapt to a warmer world. They can encourage the urban consumer classes to move toward lower carbon consumption, and can capitalise on the latest technologies for cleaner transport, greener buildings and improved waste management,” Trankmann said.

“The piloting of I-GEM by the Jakarta Administration is an opportunity to do just that,” she added.

A study by UNDP in 2012 found that cities around the world including Jakarta contribute more than two-thirds of global greenhouse gases, primarily through transportation and the use of electricity. The application of I-GEM is expected to halt rising emissions from rapidly developing big cities such as Jakarta. kabarCSR.com/ UNDP

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