Publication: Clean and Climate Resilient Transport: Identifying Policy Priorities for Indonesia
Loading...
Date
2024-03-12
ISSN
Published
2024-03-12
Author(s)
Editor(s)
Abstract
At five percent of energy emissions, transport is one of the major contributors to greenhouse gas (GHG) emissions in Indonesia. The rapid growth in vehicle fleet-personal passenger vehicles in particular is driving road transport emissions. Indonesian cities are suffering from severe congestion, air quality issues, and increasing numbers of road accidents and fatalities. Private transport dependence is increasing in Indonesian cities. The growth in Indonesia’s urban population has led to a growth in urban area boundaries, suboptimal spatial patterns, and increased travel distances. The availability and quality of public transport is highly deficient and largely left to fragmented unorganized players with old and poorly maintained minivans (angkot). Electric vehicle mobility has been identified as a major prospective area of development for Indonesia. The market response has been timid so far and, despite the government electrification plans, the EV market uptake as a fraction of total vehicle sales is small Large gains in both economic development and climate mitigation benefits are possible through a more structured approach towards urban mobility.
Link to Data Set
Citation
“Gupta, Nupur; Chesheva, Elena; Diaz, Thomas Herrero. 2024. Clean and Climate Resilient Transport: Identifying Policy Priorities for Indonesia. © World Bank. http://hdl.handle.net/10986/41179 License: CC BY-NC 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Making Transport Climate Resilient : Country Report Ethiopia(Washington, DC, 2010-08)This report is the output of the World Bank-financed study on Making Trans-port Climate Resilient for Ethiopia, which is a Sub-Saharan Africa initiative to respond to the impact of climate changes on road transport.The climate scenarios The study is based on four climate scenarios selected by the World Bank to be consistent with the scenarios used in the study Economics of Adaptation to Climate Change. The scenarios span from a "global dry" future with lower temperatures and less rain than today to a "wet Ethiopia" future with more rain than today and an increase in heavy rain so that a 10- year storm in 2050 will be 25% more intensive than today. The foreseen increases in average temperatures range from -1 OC to 2 OC by 2050.Publication Climate Resilient Ningbo Project : Local Resilience Action Plan, Volume 1. Final Report(Washington, DC, 2011-06)Ningbo serves as the Chinese pilot city for the World Bank Climate Resilient Cities (CRC) Program. The CRC program aims to, prepare local governments in the East Asia region to better understand the concepts and consequences of climate change; how climate change consequences contribute to urban vulnerabilities; and what is being done by city governments in East Asia and around the world to actively engage in learning capacity building, and capital investment programs for building sustainable, resilient communities. This local resilience action plan (LRAP) had four parts. Part one investigated natural hazards weather observations and climate models. Seven key climatic parameters were selected: temperature, rainfall, drought, heat wave, flood, tropical cyclone, and sea level rise. Part two examined how the city functions, and pursues socio-economic development through a city vulnerability assessment. The qualitative, city vulnerability assessment was based on five sectors- people, infrastructure, environment, economy, and government. Each sector was analyzed extensively on a range of issues, and compared to other similar Chinese cities to more accurately judge its performances. Part three is the gap analysis. It was performed to understand the government actions and their effectiveness to respond to natural disasters, and whether the current and planned policies and programs address the current and future climate change impacts and natural disasters. This part was supported by the following inventories: inventory of natural disasters, and inventory of policies and programs. Part four therefore was to develop recommendations for each of the city vulnerability sectors. The 70 plus recommendations are specific to Ningbo's vulnerabilities and risks. They are described briefly, intended to serve as an introduction. Feasibility studies are recommended before further action or implementation.Publication Climate Resilient Ningbo Project : Local Resilience Action Plan, Volume 2. Appendices(Washington, DC, 2011-06)Ningbo serves as the Chinese pilot city for the World Bank Climate Resilient Cities (CRC) Program. The CRC program aims to, prepare local governments in the East Asia region to better understand the concepts and consequences of climate change; how climate change consequences contribute to urban vulnerabilities; and what is being done by city governments in East Asia and around the world to actively engage in learning capacity building, and capital investment programs for building sustainable, resilient communities. This local resilience action plan (LRAP) had four parts. Part one investigated natural hazards weather observations and climate models. Seven key climatic parameters were selected: temperature, rainfall, drought, heat wave, flood, tropical cyclone, and sea level rise. Part two examined how the city functions, and pursues socio-economic development through a city vulnerability assessment. The qualitative, city vulnerability assessment was based on five sectors- people, infrastructure, environment, economy, and government. Each sector was analyzed extensively on a range of issues, and compared to other similar Chinese cities to more accurately judge its performances. Part three is the gap analysis. It was performed to understand the government actions and their effectiveness to respond to natural disasters, and whether the current and planned policies and programs address the current and future climate change impacts and natural disasters. This part was supported by the following inventories: inventory of natural disasters, and inventory of policies and programs. Part four therefore was to develop recommendations for each of the city vulnerability sectors. The 70 plus recommendations are specific to Ningbo's vulnerabilities and risks. They are described briefly, intended to serve as an introduction. Feasibility studies are recommended before further action or implementation.Publication Moving Toward Climate-Resilient Transport(World Bank, Washington, DC, 2015)Infrastructure and services are critical to development and form the backbone of economic and community activities at the local, regional, national, and international levels. They enable the distribution of goods and services within and between countries and ease access to schools, markets, and health services. Food security and vaccination programs, for example, require functioning roads and railways and access to ports and airports to move critical supplies to people. While there is agreement on the need for greater connectivity, there is much debate on how to deliver it given the challenges from climate change. The contribution of the transport sector to increasing greenhouse gas emissions (GHG) and fossil fuel consumption have been at the center of global discussions on climate change. Transport is among the fastest growing sectors for CO2 emissions from fuel combustion, and it is estimated to contribute approximately 23 percent of total energy-related CO2 emissions in 2010. Transport enables development, but causes traffic congestion, pollution, noise, and road accidents, that together bring about 2 percent to 10 percent reduction in country-level GDP. Reversing this trend in emissions growth will require action to decouple emissions growth from GDP growth, driven by passenger and freight activity. This includes policies to encourage investment in low-carbon transport modes; programs to curb energy and emissions growth; and action to transform the way countries manage transport services.Publication Accelerating Clean, Green, and Climate-Resilient Growth in Vietnam(Washington, DC : World Bank, 2022-06)Vietnam has demonstrated great and almost unrivaled development success over the past few decades as evidenced by a variety of measures, including national income, poverty reduction, and access to services. However, Vietnam’s performance in terms of progress on robust, equitable and sustainable development, an overarching objective of the country’s current policy framework, highlights that Vietnam is comparing less favorably when benchmarked against countries at similar income level, in the East Asia and Pacific region or globally, especially on the environment and resource efficiency. The shortcomings in critical areas of development point to important areas for policy action and investments in relation to the environment, especially as Vietnam strives to ascend to upper-middle-income country status (a level at which countries’ international and regional peers generally perform significantly higher). These include measures to rapidly decouple economic activities from polluting fossil fuel consumption (and advance renewable energy); make agriculture and industry more resource-efficient, cleaner, and productive; boost social resilience to natural disasters; and climate-proof infrastructure. Considering today’s rampant pollution and highly concerning degradation of the natural environment, it is critical that Vietnam accelerates its shift to a growth model that is cleaner, greener, and more climate resilient. The current 2021–30 Socio-Economic Development Plan (SEDP) and subordinate strategies (such as the new Green Growth Strategy) are already motivated by the overarching policy orientation toward sustainability. And the recent commitment to achieve a carbon-neutral economy by midcentury gives additional impetus to this critical transition. Moving toward a more circular economy, in essence a more resource efficient industry and harnessing the potential of renewable resources to reduce leakage and pollution, in key sectors and value chains can unlock significant growth potential and help reverse the current trends. Many of the necessary interventions, based on first-order estimates, can yield significant benefits relative to costs. Conversely, continuing the growth model of the past decades would result in cumulative costs that create a drag on the economy. Market-based instruments (including taxing carbon emissions and polluting materials such as plastics), if designed well, can unleash economic forces and leverage private sector investments that can simultaneously boost Vietnam’s sustainability, economic growth, and competitiveness.
Users also downloaded
Showing related downloaded files
Publication Trading Towards Sustainability(Washington, DC: World Bank, 2024-01-22)Climate change - and efforts to mitigate and adapt to it - will affect global flows of trade and Indonesia’s ability to transition to a more environmentally sustainable economy on its path to become a high-income economy is, therefore, interlinked with trade policy. Environmental policy stringency (EPS) is increasing around the globe - a crucial challenge lies in harmonizing these with sustained economic growth, yet both goals can be reached. Although trade flows facilitate emissions, they are also a critical part of the solution, including through trade in environmental goods (EGs) and plastic substitutes - with important economic spillovers. This report provides a detailed analysis of the role of trade and trade policy on EGs and plastic substitutes in Indonesia’s green transition. Chapter one describes the need for, and urgency of, this transition, by looking at the carbon intensity of Indonesia’s trade, the impacts of environmental policies of Indonesia and key trading partners, and the roles of EGs. Chapter two examines where Indonesia stands on the level of trade in EGs and plastic substitutes and the competitiveness of EGs trade. Chapter three explores trade agreements and tariffs and simulates potential impacts of tariff reforms - including through multilateral actions. Chapter four examines what non-tariff measures (NTMs) apply on the products including inputs of firms exporting EGs and assesses which NTMs may be costly. Finally, chapter five concludes with policy recommendations.Publication Green Economic Growth in Indonesia(Washington, DC: World Bank, 2024-04-03)This paper provides a macro-fiscal overview of Indonesia’s progress along four interlinked dimensions of green growth. The first three sections will discuss green growth from the outcomes perspective, while the last section will look at green growth from the policy perspective: (i) carbon use in the growth process; (ii) the impact of carbon use through pollution on human capital; (iii) the consequence of carbon use on national wealth; and (iv) the fiscal policies to support the low-carbon transition. The paper takes stock of Indonesia’s progress in decarbonizing growth. It then analyzes the extent to which fiscal policies are aligned with this overall objective.Publication Climate Change Adaptation and Social Inclusion Screening and Quantification Tool for PT Indonesia Infrastructure Finance(Washington, DC: World Bank, 2024-07-24)Indonesia is highly vulnerable to the impacts of climate change, including projected sea-level rises, changing precipitation patterns, intense tropical cyclones, and storm surges. This is largely due to the concentration of urban poor in city peripheries, where infrastructure supply is limited and of low-quality. The government of Indonesia is strongly committed to combating climate change and, as such, has made a number of commitments to strengthen its climate change adaptation and mitigation priorities. As a step towards this, Indonesia ratified the Paris Agreement in 2016 and submitted its nationally determined contributions (NDCs). In this context it becomes imperative to catalyze infrastructure investments that foster E&S sustainability, with a focus on gender protection and equality, particularly in, vulnerable communities. To help further the government’s strategic priorities, PT Indonesia Infrastructure Finance (IIF), a leading non-bank private infrastructure financing institution, is committed to strengthening the application of international best practices in climate risk and social inclusion standard. The objective of this assignment was to (i) strengthen IIF’s capacity to develop a strategy and methodology to screen climate-smart projects and quantify the impacts and benefits of the application of climate risk, gender, and other social inclusion considerations such as Cultural Heritage, Biodiversity, Ecosystem Services, and Indigenous peoples from a project perspective and (ii) help support and advance Indonesia’s sustainability and climate commitments.Publication Indonesia Economic Prospects, December 2024(Washington, DC: World Bank, 2024-12-19)Indonesia’s economy remains resilient, buoyed by strong domestic demand and a recovering service sector. The current account deficit widened, driven by moderating terms of trade and cyclical factors that intensified services and income outflows. After two years of consolidation, the fiscal policy stance loosened slightly. Meanwhile, Bank Indonesia (BI) has been incrementally easing its policy stance while managing currency stability. Indonesia needs to significantly increase tax revenues to investment in human and physical capital to achieve its high-income status ambitions. The country’s public capital stock lag regional and structural peers, falling far short of advanced economies. Closing these gaps could enhance productivity growth and support the sustained 6 percent growth required to reach high-income status by 2045. However, the investment needed is substantial. A significant portion of this must be financed through increased tax revenues, as a substantial rise in debt would be risky and would violate statutory caps on deficit and debt levels. Overall, increasing tax revenues will require reforms that widen the tax base, improve tax administration, and address structural constraints to compliance. Reforms to widen the tax base could lower the registration threshold for VAT to align with middle-income country norms, which also applies to the temporary final tax for MSMEs. Meanwhile, a permanent final tax regime could be introduced for MSMEs below the threshold. Special CIT treatments, such as for construction services, publicly listed firms, and non-standard VAT exemptions, may be phased out gradually. Tax incentives need to become more strategic, time-bound, and systematically reviewed. Improving compliance requires better risk management, using high-quality third-party data and integrating fragmented government systems. Simplifying and clarifying VAT regulations can reduce disputes and administrative burdens. Lastly, addressing structural constraints involves deepening financial sector depth, which is expected to have the secondary effect of facilitating compliance through improved information and formalization.Publication Trading in Green(Washington, DC: World Bank, 2024-03-07)Although Indonesia’s economy has diversified over the past decades, natural resource extraction remains a key sector for both the domestic economy as well as international trade. Indonesia’s ability to diversify away from primary products, reduce carbon emissions, adapt to climate change, and transition to a low-carbon economy is strongly interlinked with trade and trade policy. To position itself to benefit from the global transition to a non-carbon economy, Indonesia needs to adapt to new sources of international demand, adjust its existing productive capabilities, and cultivate new green industries. This note analyzes the carbon content of Indonesia’s trade flows.