The Green Growth Program continuously develops and improves various green growth tools, methods, indicators, best practices, etc. to encourage green investment.
Extended Cost Benefit Analysis (eCBA)
Economic growth that achieves the three pillars of sustainable development—human development, economic progress and environmental protection—requires a balancing act, factoring in multi-dimensional variables. The Green Growth Program uses Extended Cost Benefit Analysis (eCBA) as a planning tool to help design policy interventions, encourage the use of green technologies and best practices, and ensure green growth outcomes of investment projects.
In particular, eCBA is a very useful quantitative tool to provide concrete monetary values attached to social and environmental externalities. These costs are often hidden and are not addressed in conventional cost benefit analysis. By filling the ‘quantitative gap’, policymakers are able to use eCBA to demonstrate that investing in green projects will yield economic and social benefits.
Strategic Environmental Assessment (SEA)
In the last two decades, the rate of environmental degradation in Indonesia has been increasing. The impacts do not only endanger people’s health and wellbeing but also threaten nature’s ability to recover and hinder sustainable utilization of natural resources.
Based on experience of implementing various environmental management instruments, primarily Environmental Impact Assessment (EIA), it shows that although EIA is quite effective at the individual project level, this tool is not sufficient in providing overall solution to cumulative environmental impacts, indirect impacts and synergistic environmental impacts. The government now realizes that sustainable development efforts will be more effective if they focus on approaches at the macro/national level rather than at the limited project-level.
In the context of this strategic shift, the Green Growth Program emphasizes the importance of using Strategic Environmental Assessment (SEA) as a tool to evaluate how far government policies, plans and programs—both national and sub-national—have considered and applied green growth principles. SEA is expected to anticipate cross-border and cross-sectoral environmental impacts. The program also encourages the integration of the Extended Cost Benefit Analysis (eCBA) in SEA, as one of the tools to measure financial viability and ensure sustainable development.