As one of the world's largest greenhouse gas emitters, Indonesia's building sector accounted for more than a quarter of total energy use in 2004—a share that is expected to increase to nearly 40 percent in the next two decades.
In response, investment climate teams of the World Bank Group are helping the government of the capital province, Jakarta, develop a green buildings code. The project, implemented by IFC advisory services in Indonesia is introducing a regulation that will set energy and water efficiency requirements for buildings, and will require climate change adaption practices to be included in building designs. Implementation of the code is expected to reduce energy consumption in large commercial and high-rise residential buildings, potentially cutting around 2.7 million tons of carbon dioxide per year by 2020. This is equivalent to carbon sequestered annually by 60 million grown trees or equivalent to the current annual emission of Macau SAR (2.4 million tons of carbon dioxide).
The goal is to create a code that is simple to implement, effective, and easy to monitor. The project's analysis modeled a range of possible changes for each commercial building type in Jakarta which met clear criteria for market preparedness and ease of implementation, while maximizing the benefits of energy (CO2) and water reductions in a cost-effective manner. The details of the code have been developed in close consultation with government as well as private sector stakeholders, including developers, landlords, and professional associations.
"To help achieve [the national target of cutting carbon emissions by 26 percent by 2020], Jakarta has been working on a number of sustainable city initiatives since 2008," said Jakarta Governor Fauzi Bowo at the launch of the project. "With effective implementation of the green buildings code in Jakarta, the city can serve as a model for implementation in other cities in Indonesia."
The project is evaluating the feasibility of various measures under the draft green building code and hosting a series of consultation workshops with key private sector players. It is providing support for the local government through a series of training and capacity-building initiatives, and to the private sector through a review of financing needs and incentives for firms to retrofit existing buildings.