A fundamental objective of the Joint Program is mainstreaming green growth within Indonesia’s economic planning and development processes.
To this end, the Green Growth Program is developing a framework and toolkit that can be used by a variety of government agencies, especially those involved in planning and economic activities, including investment appraisals. This framework, described in this document, Mainstreaming Green Growth Assessment Tools In Economic & Development Planning: The role of Extended Cost Benefit Analysis in shaping public & private investment, developed with stakeholders in 2013 and 2014, aims to make green growth measurable in terms of five desired outcomes, using a series of national, regional and project-level indicators.
- The Green Growth Assessment Process (GGAP) provides a systematic approach to improve green growth outcomes of wider policies and investment plans.
- The extended Cost Benefit Analysis (eCBA) is a quantitative tool that provides monetary values of net benefits associated with green growth policy interventions to improve existing or shaping whole new capital and infrastructure projects.
- Government of Indonesia and GGGI have applied eCBA in several projects to show that this tool can play an important role in the existing regulatory and planning framework for environmental impact assessment.
- On the macro policy level, the eCBA can play a role in evaluating baseline and identifying alternative scenarios in the Strategic Environmental Assessment (SEA) process by using the impact pathway framework.
- On the project level, integrating eCBA into the Environmental Impact Assessment (EIA) process would make the AMDAL process more rigorous, as it includes economic valuation.
- Lastly, eCBA could be a viable tool to complement the project planning process required for investment using the Public-Private-Partnership (PPP) mechanism.