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CAIPSDCC Policy Brief

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CAIPSDCC Policy Brief Lifting climate action through COVID-19 recovery Virtual CAIPSDCC High-level Dialogue 24 August 2020 POLICY BRIEF CONTENTS Introduction The devastating and unprecedented impact of the Introduction 1 COVID-19 pandemic underscores the urgency for global cooperation to address complex social, Reframing the task: economic and environmental challenges that underpin From challenge to opportunity 2 human and planetary wellbeing into the future. Pathways towards cooperation 4 Australian Foreign Minister Marise Payne observed in June 2020 that, “COVID-19 is a shared crisis – a Conclusion 7 reminder that many problems are best solved or, indeed, can only be solved through cooperation. At Notes 8 the heart of successful international cooperation is the concept that each country shares, rather than yields, a portion of its sovereign decision-making. And in return, each gets something from it that is greater than their contribution.”1 ABOUT THE GRIFFITH ASIA INSTITUTE Cooperation is by no means assured. Ongoing border closures, travel restrictions and cities in lockdown The Griffith Asia Institute (GAI) is an internationally have amplified the isolationist tendencies of some recognised research centre in the Griffith Business nations, while exposing the fragility of regional and School. We reflect Griffith University’s longstanding global multilateral institutions. As governments shift commitment and future aspirations for the study of between COVID-19 ‘response’ and ‘recovery’ modes, and engagement with nations of Asia and the Pacific. new challenges and barriers to cooperation continue At GAI, our vision is to be the informed voice to emerge. leading Australia’s strategic engagement in the Asia Pacific—cultivating the knowledge, capabilities and Yet, when viewed through a strategic lens, COVID-19 connections that will inform and enrich Australia’s offers the opportunity to lift global collaborative Asia-Pacific future. ambitions in the face of crisis. The opportunity to deliver ‘triple-dividend’ outcomes—maximising We do this by: i) conducting and supporting investments in health and economic recovery to excellent and relevant research on the politics, achieve climate friendly, sustainable growth on local, security, economies and development of the Asia- regional and global scales—has never been more Pacific region; ii) facilitating high level dialogues compelling. and partnerships for policy impact in the region; iii) leading and informing public debate on Australia’s Australia and Indonesia—as neighbours and partners place in the Asia Pacific; and iv) shaping the next in the Asia-Pacific region—are well placed to support generation of Asia-Pacific leaders through positive each other through the recovery and rebuilding learning experiences in the region. phases ahead. Working together through both formal and informal dialogue, capacity building and research collaboration, the two nations are well placed to bring meaning and substance to the potential for ‘building back better’. Cooperation between these two nations ABOUT THE DIALOGUE would be for the benefit of the communities and nations across the broader Asia-Pacific region. CAIPSDCC organised a virtual dialogue on climate These are the key themes to emerge from the virtual diplomacy on August 24, 2020, with the title: “Strengthening Cooperation and Lifting Ambition on High-level Dialogue organised by the Collaborative Sustainable Development and Climate Change Beyond Australia Indonesia Program on Sustainable COVID-19”. The High-level Dialogue was attended by Development and Climate Change (CAIPSDCC) on 24 several high-level public officials and practitioners, such August 2020. The dialogue—convened to address as Mr Alue Dohong, the Vice Minister of Environment and emerging concerns about the impact of COVID-19 Forestry Indonesia and Mr Jamie Ibister, the Australian Ambassador for the Environment. on the challenges of climate change and sustainable Reframing the task: From development—focused on securing pathways for challenge to opportunity cooperation between Australia and Indonesia. Bringing a select group of diplomatic, policy and Indonesia and Australia both face similar and distinct academic leaders from both nations together, the challenges in addressing the interrelated challenges dialogue posed the following questions: of climate and development action in the post- COVID-19 era. Both nations must attract and mobilise l How will climate diplomacy progress in years outside sources of capital investment to achieve ahead—particularly given the social and economic stated emissions targets, while also enabling economic impacts of COVID-19? growth. And both face the significant political task of delivering alternative sources of jobs and income, l How might Australia and Indonesia work together including for marginalised and vulnerable populations. to lift bilateral and regional ambitions on climate While sharing the aspiration to ‘build back diplomacy, while also dealing with the immediate better’, it is worth noting that there are striking need to respond and recover from the impacts of differences in Indonesia and Australia’s geographic COVID-19? realities, development needs and economic goals. Understanding how national priorities sit within the The dialogue offered a platform for open discussion domestic context of each nation is a critical first step between leaders, policy-makers and diplomats in identifying opportunities for potential cooperation. currently working within various domains of research, policy and practice, as well as those bringing the The following sections touch on key issues and benefit of experience and reflection. Integrating these priorities shaping the Indonesian and Australian perspectives has enabled constructive and fresh contexts. It incorporates key points made by dialogue thinking, with a focus on lifting the ambitions of both speakers. Further updates on key developments since nations. the dialogue have also been included. Not an end point in itself, this dialogue is one Indonesian context—a snapshot in a series (the Witoelar Dialogues2) aimed at Indonesia’s National Medium-Term Development Plan strengthening Australia-Indonesia understanding, (RPJMN) 2020-2024 commits to climate action cooperation and partnership in addressing the through the Low Carbon Development Indonesia shared challenges of climate change and sustainable (LCDI) development policy. Implemented in 2019, development within a regional context, and LCDI is an explicit process for identifying policy now in the context of COVID-19 recovery. This action to reduce national greenhouse gas (GHG) paper sets out the background and context of emissions, while maintaining economic growth, discussion, while drawing out key issues, themes and alleviating poverty, and preserving and improving recommendations. the country’s natural resources. Coordinated by the nation’s development agency BAPPENAS, the low carbon growth path is seen as a paradigm shift in Indonesia’s transition towards a ‘green economy’. It There is an is supported by a national commitment to increase renewable energy capacity, and is increasingly opportunity to ‘build attractive to international investment.3 If successful, back better’ with recovery its impact will be significant, with forecast reductions “strategies that integrate in Indonesia’s overall GHG emissions of 43% by 2030 low carbon development (exceeding Indonesia’s internationally assisted National Determined Contribution (NDC) aim of 41% below and sustainability.” baseline).4 Agustaviano Sofjan And yet, the immediate pressures brought to bear on Director, Development, Economics the lives and livelihoods of Indonesians by COVID-19 and Environment Affairs, KEMLU threaten to undermine progress towards Indonesia’s CAIPSDCC High-level Dialogue long-term vision for a low carbon economy. With 28 August 2020 more than 800,000 cases and close to 25,000 deaths recorded as at January 2021,5 the government is 2 now focused on supporting a health system under Australian context—a snapshot strain, while advancing urgent vaccine distribution With an estimated 28,650 coronavirus cases and a across the country. Immediate relief measures are total of 909 deaths recorded at the time of writing,9 estimated to cost USD24.6 million, in addition to the Australia is seen to have managed the initial impact of impact of an ongoing economic contraction and rising COVID-19 relatively well. A combination of coordinated unemployment.6 lockdowns, contact tracing and public compliance are As a result of COVID-19, a further USD247.2 billion credited for the outcome. Yet the economic cost remains will be required to keep the nation’s NDC targets on high with the nation now confirmed to be in an economic track. While international assistance has long been recession. Mounting pressure on the government to recognised as a fundamental pillar of the nation’s address climate change sits alongside the imperative to climate aspirations, there is now significantly more boost economic recovery from COVID-19, in line with pressure for Indonesia to mobilise public, private increasing recognition across business and industry of the and philanthropic capital through utilising national, responsibility to ‘build back better’. international and multilateral mechanisms, (including Australia’s relatively weak commitment to lower the Green Climate Fund). emissions (targeting a 26-28% reduction on 2005 levels by 2030) is now tied to the government’s recently launched Technology Investment Roadmap. Australia’s
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