Yogyakarta City takes the lead in Piloting Urban Article 6 for Climate Finance and Sustainable Development

At COP28, the global commitment to uphold the 1.5°C target fueled ongoing discussions surrounding Article 6 of the Paris Agreement, fostering global cooperation for climate action and financial aid to developing nations.  Piloting the Urban Article 6 project in Indonesia, Yogyakarta is poised to tap into climate finance, supporting cooperative approaches toward reaching NDCs targets.

Taking place in Yogyakarta City on 25 October 2023, ICLEI Indonesia in partnership with Perspectives Climate Research, successfully conducted a project assessment workshop and site visits. These activities aimed to identify opportunities for sustainable development and equip city officials with essential strategies for implementing ready-to-finance urban projects. 

Importantly, this initiative will play a crucial role in ensuring the environmental integrity of pilot projects and aligning them with Indonesia’s NDCs to be eligible for Article 6 financing.

City officials and representatives from Yogyakarta’s regional development planning agency, ICLEI Indonesia, and Climate Perspective Research engaging in a focus group discussion on October 25, 2023

With a focus on GHG-emissions reduction using calculated methodologies, two key pilot projects have been identified in the region. The development of biodigester facilities to transform food market waste in Pasar Giwangan and the deployment of the electric bus program in Yogyakarta region. 

This initiative represents an opportunity for local governments to implement sustainable development projects that will be self-sustaining, scalable,  and (co-)financed through the sale of ITMOS (Internationally Transferred Mitigation Outcomes).

Electric Buses Project: A Collaborative Stride towards Greener Mobility

In a groundbreaking development, Yogyakarta City aims for a strategic turn towards electric bus deployment and regional collaboration in the province of the same name. 

Trans Jogja is a bus rapid transit (BRT) system operating in Yogyakarta and surrounding areas, with 17 different routes. Source: jojgaaja.com

Presently, there are 128 Transjogja diesel-fueled bus rapid transit (BRT) units operating in Yogyakarta province and surrounding areas, covering 17 different routes. Each bus generates approximately 190 tCO2e per year with a total fleet avoidance potential of roughly 24,500 tCO2e per year once the transition to electric buses is completed. Over the 15-year crediting period, this eco-conscious project has the potential to reduce around 318,000 tCO2e.

Initially conceived to transform diesel buses within city jurisdiction, the project now plans to unfold in partnership with the Transportation Agency of Yogyakarta Province. A bilateral meeting held post-workshop showcased a shared commitment to the project, with the provincial authorities expressing openness to future collaborations.

Scaling Up Biodigester Project: Sleman and Bantul Regencies Join The Initiative

Amid growing concerns about waste management, particularly the strain on the Giwangan Market landfill, the City of Yogyakarta’s Biodigester Project is gaining momentum. It is estimated that the emission reduction/ITMO generation potential for this project aims to mitigate a total of 27,500 tCO2e  over 15 years. 

Food market waste in Pasar Giwangan, Yogyakarta City.

However, initial calculations by Perspectives revealed the need for upscaling to ensure project feasibility. There are also concerns regarding the availability of the land to build the biodigester facility. Responding to this, the City of Yogyakarta plans to engage Sleman and Bantul Regencies, part of the agglomeration of Kartamantul (Yogyakarta, Bantul, and Sleman). Authorities in both regencies have expressed keen interest in participating, marking a significant step towards a collaborative, region-wide solution. 

To ensure the viability of this project, further assessment and project designing are underway for transformative sustainability initiatives shaping the Yogyakarta region. 

Since 2021, ICLEI Indonesia and Perspective Climate Research have collaborated to assist Yogyakarta in piloting urban climate actions under Article 6 of the Paris Agreement. This initiative, supported by the International Climate Initiative (IKI) of the German federal government, provides local governments with a chance to implement self-sustaining and scalable sustainable development projects.

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