In this presentation I want to share the importance to reduce the GHG emission in aviation sector and how to utilize the carbon credits from market based mechanism projects

1. Green Aviation Through Carbon
Offset Program
Dicky Edwin Hindarto
Head of Indonesia JCM Secretariat
Indonesia Joint Crediting Mechanism Secretariat
August 19-20th 2015
Market-Based Mechanisms (MBM’s) and ICAO discussions
International Green Aviation Conference 2015

2. 1. Airline industries and carbon credits
2. Market based mechanism for
emissions reduction in Indonesia
3. The Joint Crediting Mechanism, a
newly fast growing scheme in
Indonesia
4. Can demand meet supply?
Presentation structure

3. From polluted to green aviation, human needs to fly!
Step by Step of Green Aviation Development
1. Airlines calculate their emissions, e.g. using carbon calculator.
2. Airlines apply green technology: energy efficient aircraft and biofuel.
3. Energy efficient technology in the aviation supply chain.
4. The priority is reduction by self-efforts by each aviation, and then follow by offsetting.
5. Airlines take part in carbon neutral and offsetting program by buying carbon credits from
carbon market.

4. Some of the airlines offsetting programs
Airlines Name Offsetting Programs Type of scheme Reasons
1. Thai Airways CDM (Clean Development
Mechanism)
Mandatory International standards
2. Qantas & Virgin National Carbon Offset
Standard
Mandatory Government policy and regulation
3. Garuda Indonesia Forest conservation Voluntary Protection of Indonesia forest
4. United Airlines Renewable energy and forest
conservation
Voluntary Passenger choices
5. EU airlines (Lufthansa,
Easyjet, Air France, Air
Berlin, British Airways)
Credits from EU-ETS (that
came from CDM and JI
projects)
Mandatory Follow EU law and regulations
6. Singapore Airlines Forest conservation (Harapan) Voluntary Protection of forest and ecosystem
7. Qatar Airlines IATA carbon offset Voluntary Company policy
8. Emirates Renewable energy, energy
efficiency, and sustainable
forest and tourism
Voluntary Company investment
9. ANA Forest conservation by using
J-credit
Voluntary Company policy + protect the forest

5. How to develop high quality carbon credits?
Project
Idea Note
and FS
Project
implementation
Validation
Verification
Carbon credit
issuance
Carbon Trading Scheme
• The scheme was intended to develop a climate change
mitigation activities that produce tradable/transferable
and high quality carbon units that meet the
environmental integrity criteria.
• All of the carbon trading schemes used commonly based
international and national standards. The carbon credits
that are bought by the airlines must avoid double counting.
A carbon credit is a generic term for any tradable certificate or
permit representing the right to emit one tonne of carbon
dioxide or the mass of another greenhouse gas with a carbon
dioxide equivalent (tCO2e) that equivalent to one tonne of
carbon dioxide.
Passengers can purchase carbon credits generated by certified
renewable energy, energy efficiency, forest conservation, land
use change, and REDD+ projects in developing countries that are
verified to reduce greenhouse gas emissions.
The project was still in
preliminary idea or FS
The project was being
implemented with use some
international standards
The independent
third party entity
validate the project
based on standards
Number of emission
reduction were
calculated by using
specific methodology
The scheme owner issued the
credits as a
tradable/transferable and high
quality carbon units

6. Is there any market based mechanism in Indonesia?
Climate Change Mitigation Measures
Market Based Mechanism
Carbon Market
Another Type of
Market
Government
Budget
Central and Local
Government
Budget
Private
Sector
PPP’s and Private
Investments
FDI
Foreign
Investment from
Private and
Government

7. Current condition of carbon trade in Indonesia
CDM
• Giving very high expectation in the
beginning, very difficult and
complex to be implemented, and
suddenly everything was stopped
due to the lack of demands, now
we have no new project in 2014.
• But still we got a lot of experiences
from the CDM projects that we
have developed.
VCS
• Relatively small compare to CDM,
but still growing smoothly.
• Indonesia has the biggest REDD+
project under the VCS, this is until
now is the only land based project
under Indonesia VCS development.
• Some of the CDM projects change
to be VCS projects because of the
lack of CER’s demand from EU-ETS.
Indonesia Domestic
Carbon Scheme
• Still in the preliminary stage.
• Some of the methodologies had
been tested, and so far receive
positive responses from the
business entities.
• We hope someday it will be one of
the alternative for the market
based mitigation actions.
The JCM Scheme
• We need more than three years to develop the agreement, started from 2010 and its finally signed at August 2013.
• The Joint Crediting Mechanism is the most progress mechanism now in Indonesia.
• It is not only about the bilateral carbon trading, but rather than how to develop and implement the green investment as
well as low emission development and technology transfer between the 2 countries.
• Japan and Indonesia have their own national target on emission reduction to be achieved, and it can be done through JCM.
• Both countries also need to increase their economic development as well as develop more opportunities for their private
sectors to grow.

8. CDM carbon credits, can they fulfil the needs?
Source: National Council on Climate Change Indonesia,
January 2015
CDM
Title CERs
CDM SOLAR COOKER PROJECT Aceh 1 1.077
Indocement Blended Cement Project 1.169.797
Indocement Alternative Fuels Project 370.372
Methane Capture and Combustion from Swine Manure Treatment Project at PT Indotirta Suaka Bulan Farm in
Indonesia
42.716
MNA Biomass 9.7 MWe Condensing Steam Turbine Project 29.643
Darajat Unit III Geothermal Project 4.375.366
PT. BUDI ACID JAYA Tapioca Starch Production Facilities Effluent Methane Extraction And On-site Power
Generation Project in Lampung Province, Republic of Indonesia 312.587
Ranteballa Small-Scale Hydroelectric Power Project 19.048
“Listrindo Kencana Biomass Power Plant” 40.329
Nagamas Biomass Cogeneration Project in Indonesia 81.154
Tambun LPG Associated Gas Recovery and Utilization Project 2.107.247
Emission reductions through partial substitution of fossil fuel with alternative fuels in the 2 cement plants of PT
Holcim Indonesia Tbk 136.53
MEN-Tangerang 13.6MW Natural Gas Co-generation Project 17.154
Lahendong II-20 MW Geothermal Project 216.304
Gianyar Waste Recovery Project 19.475
4MW Biomass Power Plants Using Waste Wood Chips & Sawdust in Central Java Province, Indonesia 10.982
Methane Recovery in Wastewater Treatment, Project AIN07-W-01, Sumatera Utara (North Sumatera), Indonesia 81.599
Methane Recovery in Wastewater Treatment, Project AIN07-W-04, Sumatera Utara, Indonesia 37.069
Methane Recovery in Wastewater Treatment, Project AIN07-W-05, Sumatera Utara, Indonesia 74.963
Gikoko-Bekasi-LFG Flaring Project 128.941
Kamojang Geothermal 92.691
Nubika Jaya Biogas Extraction for Bio-Hydrogen Production 3.052
10 MW Tangka/Manipi Hydro Electric Power Plant 86.664
PFC Emission Reductions at PT. Indonesia Asahan Aluminium (PT. INALUM) Kuala Tanjung 71.342
AIN08-W-03, Methane Recovery in Wastewater Treatment, Sumatera Utara, Indonesia 51.094
ID08-WWP-10, Methane Recovery in Wastewater Treatment, West Sumatera, Indonesia 62.096
Biogas project, BAJ Unit 6 45.748
Biogas project, BAJ Terbanggi 88.856
Biogas project, BAJ Way Jepara 124.937
ID08-WWP-09, Methane Recovery in Wastewater Treatment, Aceh, Indonesia 30.825
ID08-WWP-11, Methane Recovery in Wastewater Treatment, Jambi, Indonesia 33.855
BAJ Gunung Agung Factory tapioca starch wastewater biogas extraction and utilization project, Lampung
Province, Republic of Indonesia 37.842
Methane Recovery and Utilisation at PT Pinago Utama Sugihwaras Palm Oil Mill, Sumatera, Indonesia. 63.867
Wayang Windu Phase 2 Geothermal Power Project 1.555.282
Methane Recovery and Utilization at PT. Musim Mas Palm Oil Mill in Pangkalan Lesung, Riau Indonesia 44.609
Cakra Methane Capture Project 27.782
Perdana Methane Capture Project 10.111
Total CERs 11.703.006 11,703,006 CERs

9. VCS carbon credits, can they fulfil the needs?
Project ID Project Name Project Proponent Country Sectoral Scope
Estimated Annual Emission
Reductions
Additional Certifications
967 Bantargebang Landfill Gas
Management & Power Generation
PT Navigat Organic Energy
Indonesia
Indonesia 1. Energy (renewable/non-
renewable)
708,300
866 METHANE RECOVERY IN
WASTEWATER TREATMENT,
PROJECT AIN07-W-05, SUMATERA
UTARA, INDONESIA
AES AgriVerde Ltd. Indonesia 13. Waste handling and disposal 31,757
688 Wayang Windu Phase 2
Geothermal Power Project
Star Energy Geothermal (Wayang
Windu) Limited
Indonesia 1. Energy (renewable/non-
renewable)
794,832
674 Rimba Raya Biodiversity Reserve
Project
InfiniteEARTH Indonesia 14. Agriculture, Forestry, Land Use 3,527,171 CCBS Second Edition - Gold
Level
488 82 MW Lau Renun Hydro Power
Plant, North Sumatra
PT. PLN (Persero) Indonesia 1. Energy (renewable/non-
renewable)
229,048 Social Carbon
487 210 MW Musi Hydro Power Plant,
Bengkulu
PT. PLN (Persero) Indonesia 1. Energy (renewable/non-
renewable)
847,020 Social Carbon
486 50 MW Sipansihaporas Hydro
Power Plant, North Sumatra
PT. PLN (Persero) Indonesia 1. Energy (renewable/non-
renewable)
159,596 Social Carbon
409 MedcoEnergi Associated Gas
Recovery and Utilization Project
PT. Medco LPG Kaji (MLK) Indonesia 10. Fugitive emissions from fuels 86,022
243 55.5 MW Natural Gas Power
Generation Project at Batu Aji
Village, Riau Island, Indonesia, by
PT Dalle Energy Batam.
PT Dalle Energy Batam Indonesia 1. Energy (renewable/non-
renewable)
50,786
238 Mobuya Mini Hydro Power Plant 3
x 1000 kW North Sulawesi,
Indonesia
PT. Cipta Daya Nusantara Indonesia 1. Energy (renewable/non-
renewable)
11,637
144 Capacity Upgrade of Gunung Salak
Geothermal Power Plant Project,
Indonesia
PT Indonesia Power Indonesia 1. Energy (renewable/non-
renewable)
112,522
Total 6,558,691

10. JCM, a new scheme that produce high quality carbon credits
Japan IndonesiaLeading low carbon technologies,
etc, and implementation of
mitigation actions
MRV
JCM
Projects
GHG emission
reductions/
removals
MRV Methodologies
will be developed
by the Joint Committee
Used to achieve
Japan’s emission
reduction target
Credits
Source: GOI
• JCM or Joint Crediting Mechanism, is
a relatively new scheme between
Japan and Indonesia that aims to
reduce GHG emission and enhance
low carbon growth development.
• Bilateral agreement on JCM (Joint
Crediting Mechanism) between
Indonesia and Japan was signed on
August 2013
• Some of the JCM technical
instruments were developed to
ensure a high quality carbon credits
that meets with environmental
integrity.
• The JCM Joint Committee is the highest decision maker in the JCM scheme. They have a duty to develop the JCM scheme
instruments as well as issued the emission reduction credits.
• Indonesia as a host country also develop its own rules and regulations in JCM scheme, one of it is the sustainable development
guideline implementation.
• Every JCM project not only has to follow the ISO 14064 standards but also must implement sustainable development criteria.

11. JCM projects: latest development
Registered Project
The 1st JCM registered project:
• Collaboration between Ebara
Equipment & Systems and PT
Primatexco Indonesia
• Location: Batang, Central Java
• Estimated total emissions reduction 799
tCO2 eq. by 2020
• Annual 965 MWh energy saving
The JCM Project Progress
• 101 Feasibility Study have been done from 2010-2015
• 3 projects are registered as JCM projects.
• 19 JCM projects are now in our pipeline.
• 19 projects in energy efficiency, 2 projects in renewable energy, and 1
project in REDD+ (registered and pipeline).
• All projects are being developed with the cooperation between
Indonesia and Japan participants.
The Registered Projects
1. “Energy Saving for Air-Conditioning and Process Cooling by Introducing
High-efficiency Centrifugal Chiller” (first registered project under the
JCM worldwide)
2. “Project of Introducing High Efficiency Refrigerator to a Food Industry
Cold Storage in Indonesia”
3. “Project of Introducing High Efficiency Refrigerator to a Frozen Food
Processing Plant in Indonesia”

12. List of JCM implementation projects in Indonesia
Projects Name Expected Emission Reduction
Demonstration Project
Remote Auto-Monitoring System for Thin-Film Solar Power Plant in Indonesia 1.433 tCO2/year
Energy Saving by Optimum Operation at Oil Refinery 3.400 tCO2/year
Utility Facility Operation Optimization Technology 58.000 tCO2/year
Model Project
Power generation by waste heat recovery in cement industry 122.000 tCO2/year
Energy Savings at Convenience Stores 372 tCO2/year
Energy saving through introduction of regenerative burners to the aluminum holding furnace of the automotive components manufacturer 856 tCO2/year
Solar power hybrid System installation to existing base transceiver stations in off-grid area 2.786 tCO2/year
Energy saving for textile factory facility cooling by high efficiency centrifugal chiller 118 tCO2/year
Energy saving by double bundle-type heat pump 170 tCO2/year
Introduction of High efficient Old Corrugated Cartons Process at Paper Factory 14.884 tCO2/year
Reducing GHG emission at textile factories by upgrading to air-saving loom 566 tCO2/year
Energy saving for air-conditioning and process cooling at textile factory 117 tCO2/year
Installation of CHP (Combined Heat and Power) system in a hotel 3.200 tCO2/year
Energy-saving Project by Utilizing Waste Heat at Hotel 1.936 tCO2/year
Energy Saving for Shopping Mall with High Efficiency Centrifugal Chiller 925 tCO2/year
Energy Saving for Industrial Park with Smart LED Street Lighting System 900 tCO2/year
Energy Saving for Office Building with High Efficiency Water Cooled Package Air Conditioning Unit 714 tCO2/year
Energy saving by introduction of high efficiency once-through boiler system in a film factory 428,5 tCO2/year
REDD+ Model Project
REDD+ Model Project in Boalemo district 200,000 tCO2/year
Registered Project
Energy saving for air-conditioning and process cooling by Introducing High-efficiency Centrifugal Chiller 114 tCO2/year
Project of Introducing High Efficiency Refrigerators to a Food Industry Cold Storage in Indonesia 120 tCO2/year
Project of Introducing High Efficient Refrigerator to a Frozen Food Processing Plant in Indonesia 21 tCO2/year
22 Projects 413.061 tCO2/year

13. Which scheme appropriate for green aviation?
CDM
• 37 projects have already produced
CER’s, most of them had been
dedicated and sold to EU-ETS.
• Some projects CER’s are still free to
be utilized as green aviation
offsetting programs.
• Compare to other scheme, the
CDM has the highest standards.
VCS
• Very high involvement of the
business sectors, but the standards
that have been used relatively low
than CDM.
• VCS credits demands are volatile.
• VCS can be alternatives for the
domestic aviation offsets program,
but still difficult to be used for the
international.
The JCM Scheme
• Both of Indonesia and Japan can use their credits for their own purposes, but as long as it will not transferred to other countries, the
credits still can be registered as Indonesia emission reduction achievement. As a new mechanism, JCM credits can be utilized to offset
the aviation emission, as long as it will not be traded beyond Indonesia or Japan boundary.
• The international standards that used in JCM scheme and both government support and acknowledgement makes JCM credits also
appropriate for the international aviation offsetting programs.
• The JCM will develop registry system in order to facilitate the cancellation and retirement of the credits.
• The JCM registry will be linked to the national registry.
Indonesia Domestic Carbon
Scheme
• Until now, it is still in the preliminary stage
and did not produce any carbon credits
yet.
• Will be developed under the Ministry of
Environment and Forestry.
• Alternatively, it can be used for domestic
aviation or other mode of transportation
programs.

14. Visit our website at www.jcmindonesia.com

15. Indonesia JCM Secretariat
BUMN Building 18th floor, Jl. Medan Merdeka Selatan 13, Jakarta
Website: www.jcmindonesia.com
Email: info@jcmindonesia.com
Thank you!
Terima kasih!