Realizing a more prosperous and sustainable vision for Indonesia requires a set of
policies and interventions that provide clear incentives and signals for businesses
and investors. These policies and interventions, among other things, can be combined into the following targets:
• Advancing a transition to renewable sources of energy and away from coal:
Scaling up the share of renewable energy to 30% by 2045.
• Increasing energy efficiency: Decreasing the energy intensity (i.e., the ratio of
energy demand to GDP) by an average of 3.5% per year through 2045.
• Fully enforcing moratoria on forest, palm oil, and peatland harvesting and
mining: Protecting primary peatland forests and mangroves, which enhance
resilience and support biodiversity and carbon storage.
• More than tripling targets for reforestation: Reaching over one million hectares
per year by 2024.
• Meeting water, fisheries, and biodiversity targets: Following through on the
actions defined by the Aichi Targets, the Nagoya Protocol and the Convention
on Biological Diversity, which are reflected in the Indonesia Biodiversity Strategy and Action Plan (IBSAP) 2015–2020.
• Increasing land productivity: Increasing productivity by 4% per year, enabling
Indonesian farmers to grow more food while using less land and resources.
The combined effect of these policies and interventions includes an improvement
in labor productivity, increased economic efficiency, increased agricultural productivity, an accelerated rate of technological progress on renewable energy, and a
higher provision of better quality environmental goods and services. Furthermore,
with even more ambitious policy measures, Indonesia could sustain a long-term
decline in GHG emissions, such that by 2045, they would be projected to fall to
nearly 75% below baseline.
6.7.2 Concepts of Energy Return and Use Efficiency (EROI
or EPR)
To discuss energy quality and energy economy, the concept of energy return on
investment (EROI) was proposed by Hall et al. (1981) and Cleveland et al. (1984). A
similar concept, the energy profit ratio (EPR), was introduced mainly in Japan
(Uchiyama and Yamamoto 1991; Amano 2008). These concepts are defined as
EROI ¼ EPR ¼ E out =E in,
where E in is the energy invested for producing the output energy, E out . How much
energy is obtained for every unit of energy invested? The “rabbit limit” is a fable
(Günther 2013) that explains how the energy obtained by a person from the prey he
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231
policies and interventions that provide clear incentives and signals for businesses
and investors. These policies and interventions, among other things, can be combined into the following targets:
• Advancing a transition to renewable sources of energy and away from coal:
Scaling up the share of renewable energy to 30% by 2045.
• Increasing energy efficiency: Decreasing the energy intensity (i.e., the ratio of
energy demand to GDP) by an average of 3.5% per year through 2045.
• Fully enforcing moratoria on forest, palm oil, and peatland harvesting and
mining: Protecting primary peatland forests and mangroves, which enhance
resilience and support biodiversity and carbon storage.
• More than tripling targets for reforestation: Reaching over one million hectares
per year by 2024.
• Meeting water, fisheries, and biodiversity targets: Following through on the
actions defined by the Aichi Targets, the Nagoya Protocol and the Convention
on Biological Diversity, which are reflected in the Indonesia Biodiversity Strategy and Action Plan (IBSAP) 2015–2020.
• Increasing land productivity: Increasing productivity by 4% per year, enabling
Indonesian farmers to grow more food while using less land and resources.
The combined effect of these policies and interventions includes an improvement
in labor productivity, increased economic efficiency, increased agricultural productivity, an accelerated rate of technological progress on renewable energy, and a
higher provision of better quality environmental goods and services. Furthermore,
with even more ambitious policy measures, Indonesia could sustain a long-term
decline in GHG emissions, such that by 2045, they would be projected to fall to
nearly 75% below baseline.
6.7.2 Concepts of Energy Return and Use Efficiency (EROI
or EPR)
To discuss energy quality and energy economy, the concept of energy return on
investment (EROI) was proposed by Hall et al. (1981) and Cleveland et al. (1984). A
similar concept, the energy profit ratio (EPR), was introduced mainly in Japan
(Uchiyama and Yamamoto 1991; Amano 2008). These concepts are defined as
EROI ¼ EPR ¼ E out =E in,
where E in is the energy invested for producing the output energy, E out . How much
energy is obtained for every unit of energy invested? The “rabbit limit” is a fable
(Günther 2013) that explains how the energy obtained by a person from the prey he
6 Natural Capital-Based Societies in the Tropics
231