GREEN GROWTH
AND THE ENVIRONMENT
Addressing the shared challenges of climate change

The EU recognises that joint action on climate change and the environment is an urgent global priority and is working
with Indonesia to achieve shared goals, in particular regarding sustainable, low-emission land use, resilience and mitigation, and energy efficiency. The EU has put climate change and the environment at the heart of its new growth strategy – the European Green Deal – which marks a path to a sustainable transition that is just and socially fair.

Protecting the environment and addressing global climate change has been central to the EU-Indonesia partnership for over a decade, and the EU’s new Green Deal strategy offers the opportunity to reinvigorate joint efforts to protect both the planet and its inhabitants. Supported by investments in green technologies, sustainable solutions, capacity building and technological innovation, the European Green Deal offers an approach that reconciles demands for employment, goods and services with the imperatives of reducing consumption of natural resources, and minimising outputs of polluting by-products and waste. EU-Indonesia technical cooperation and dialogue is already increasing in areas such as ecosystems and biodiversity, low-pollution circular economy approaches, transport and urbanisation, as well as initiatives to reduce deforestation and land degradation.

Forestry and land use

BioCarbon Fund Initiative for Sustainable Forest Landscapes (ISFL)

Exploring the use of Copernicus Remote Sensing for land use

Forest Law Enforcement, Governance and Trade (FLEGT)

Reducing Emissions from  Deforestation and Forest Degradation (REDD+)

Circular economy

Forest Carbon Partnership Facility (FCPF)

Strengthening Indonesian certification for sustainable palm oil (TERPERCAYA)

Renewable energy

green deal
The European Green Deal

The overarching aim of the European Green Deal is to reach net-zero greenhouse gas emissions within the EU and deliver a pollution-free environment by 2050. Advances in transport, agriculture systems and ecosystems and biodiversity are all required, as well as efforts to further develop a circular economy that ensures products can be reused and recycled. From 2021 to 2027, 35 percent of the EU’s research funding will be dedicated to developing climate-friendly technologies.

In its efforts to reduce illegal logging, the EU’s FLEGT (Forest Law Enforcement, Governance and Trade) action plan, established in 2003, strengthens sustainable and legal forest management, improves governance and promotes trade in legally produced timber. In Indonesia, the initiative counters illegal logging through projects addressing transparency, public engagement, domestic market and legal reforms, a timber legality assurance system, and monitoring. These efforts have seen significant success, with Indonesia becoming the first country in the world to obtain FLEGT licensing for its timber products exported to the EU market in 2016.

The EU also works with civil society to boost inclusive and equitable local economic development. These grant programmes focus on sustainable cocoa production, the improvement of livestock value chains, community-based ecotourism, and youth skills development.

Through the three-year Responsible and Sustainable Indonesian Palm Oil Plantation (RESBOUND) project, launched in November 2019, the EU is also working with a consortium of Indonesian civil society organisations (CSOs) to encourage village development in and around palm oil plantations using an inclusive approach, which prioritises dialogue with the private sector and partnership agreements between village governments and the private sector.

ARISE Plus-Indonesia | Know-how for trade competitiveness 

Launched in 2019, ARISE Plus-Indonesia aims to contribute to Indonesia’s trade competitiveness and preparedness in global value chains through support targeted at national and sub-national levels. The €15 million programme aims to promote inclusive and sustainable economic growth, boost job creation and increase employment. It prioritises four areas:

The programme provides country-level interventions closely linked to the regional ARISE Plus programme, which supports regional economic integration in ASEAN. As one of the first programme outputs, a Sector Prioritisation Study was published in 2019, in collaboration with the Indonesian Investment Coordinating Board’s (BKPM) Investment Planning Division and the Ministry of National Development Planning’s (Bappenas) Trade, Investment and International Economic Cooperation Division. The study evaluates and classifies 16 business sectors in Indonesia based on the benefits from Foreign Direct Investment (FDI) and attractiveness to investors.

The study also provides inputs to BKPM’s five-year strategy, which was used as reference for the broader National Medium-Term Development Plan (RPJMN) 2020-2024.

Sustainable Urbanisation

Two new EU initiatives will promote prosperity, good governance, and sustainable urban development in Indonesia’s cities.

Support to Indonesia’s Climate Change Response

Working with Indonesia’s Ministry of Environment and Forestry (MoEF), the Support to Indonesia’s Climate Change Response – Technical Assistance Component (SICCR-TAC) has strengthened local capacities to contribute to the overall achievement of the national Reducing Emissions from Deforestation and Forest Degradation (REDD+) strategy. Implemented between February 2016 and January 2019, the project has enhanced the Government of Aceh’s capacity in its efforts towards low-carbon, low-emission economic development, with a particular focus on building capacity in Forest Management Units.

The project has helped develop a roadmap to strengthen the five regional units of Indonesia’s Directorate General of Climate Change MoEF, and contributed to the ‘greening’ of provincial development plans (RPJMD) and the incorporation of climate change commitments and targets in the official planning and budgeting frameworks which will govern provincial policies for the next five years.

Marine Biodiversity in the Coral Triangle

The Sulu-Sulawesi Seascape, shared by Indonesia, Malaysia and the Philippines, ranks among the most diverse and productive marine ecosystems in the world but faces major threats from overfishing, destructive fishing practices, rapid population growth, unsustainable coastal development and pollution. To conserve this unique marine ecosystem, the new €10 million EU-funded Marine Biodiversity and Support of Coastal Fisheries in the Coral Triangle project will enhance capacity for marine ecosystem management. It targets the management of coastal fisheries and marine protected areas in North Maluku and North Sulawesi in particular.

SWITCH-Asia

Launched in 2007, the EU’s SWITCH-Asia programme has achieved more than a decade of progress on sustainable consumption and production in 24 countries in the region. In Indonesia, eight projects have been completed and three are currently being implemented. Sustainable consumption and production involves working with consumers, producers and policy makers to increase demand for more efficient products and technologies, and to support environmentally sound policies. The aim is to decouple economic progress from resource use, minimise the use of natural resources, and avoid negative effects on the environment.

The EU also works with Indonesia through ASEAN to combat regional environmental issues through programmes such as:
Climate Diplomacy Week

Each year the EU and EU Member States organise Climate Diplomacy Week, a series of events involving government, private sector, and CSOs. It aims to highlight climate action in the EU and across the world, raise public awareness on climate change issues, and nurture partnerships for a sustainable, climate-friendly future.

In 2019, under the theme ‘Youth and Climate Actions’, the EU presented 15 activities together with seven EU Member States, a national government ministry, 19 organisations and civil society groups, and 12 opinion leaders and celebrities. In addition to discussion forums, the 2019 event featured workshops, competitions and games, a cooking demonstration, a clean-up day and other activities.