Climate challenges in Indonesia are intertwined with the country’s growth and development trajectories. Indonesia’s Country Climate and Development Report (CCDR) takes a historical look at climate and development challenges in Indonesia to: (i) present a baseline for the future low-carbon and climate-resilient journey; and (ii) develop a framework to illustrate climate-growth dynamics. The framework is centered around Indonesia’s abundant supply of carbon-intensive natural resources-land and energy-matched by high demand for those resources in parts of the economy that drive growth-agriculture, urban expansion, industry, transportation, and trade. The resulting emissions have direct and indirect costs. They erode climate resilience and increase costs from climate shocks. Rising carbon content in the economy also imposes sunk costs for the low-carbon transition. Although these challenges are known, and efforts are being made to tackle them, the framework aims to link these economy-wide issues to the ongoing and future reforms that are discussed in the CCDR.
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