A technical report on extended cost benefit analysis of Katingan Project.

The GGGI report attempts to value environmental externalities, public goods and social returns of investments by identifying the benefits of mitigating carbon emissions and preserving vital ecosystem services.

Introduction

A fundamental objective of the Government of Indonesia – Global Green Growth Institute (GoI-GGGI) Program is to mainstream green growth within Indonesia’s economic planning process. To this end, the Green Growth Program is developing a framework that can be used by government agencies to assess planning and investment appraisal activities. This framework was developed with stakeholders in 2013 and 2014 and aims to make green growth measurable in terms of the five desired outcomes (see illustration below), using a series of national, regional and project-level indicators.

Green Growth Assessments, including extended Cost Benefit Analysis (eCBA), are tools developed to measure and compare the Green Growth Performance of investments. Extensive stakeholder consultation has been carried out to support the valuation of impacts.

The toolkit can be used at a high level to prioritize projects with high green growth potential, or those that would benefit from a green growth re-design. The toolkit can also be used for Green Growth Assessmentsat the project level (such as this one on the Ecosystem Restoration Concession (ERC) Project in Katingan), using rigorous tools such as eCBA.

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