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Adaptation Financing in Indonesia. Ade Rachmi Yuliantri National Council on Climate Change Indonesia. Source of Climate Finance in Indonesia. FINANCIAL SOURCES. MECHANISM. RECIPIENTS. Sectoral agencies/line ministries Local governments Public-private partnership projects.
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Adaptation Financing in Indonesia Ade Rachmi Yuliantri National Council on Climate Change Indonesia
FINANCIAL SOURCES MECHANISM RECIPIENTS • Sectoral agencies/line ministries • Local governments • Public-private partnership projects Annual budget; Gov. investment in SOEs; Gov. investment bodies. Government Multilateral & Bilateral Develepment Agencies (ODA) Grants; loans; investments; export credit; debt swaps; etc • Government agencies • NGOs • Private sector • Public-private partnership projects Existing Climate Multilateral & Bilateral Assistance Grants; loans; investments; debt swaps; etc Philanthropic organization Grants; loans; investments, etc • Civil society or private sector initiated projects Direct investments; commercial bank loans; asset finance (lease); forward contract; IPOs). • Project developers (private sector initiated projects or public-private partnership) Domestic & Foreign Private Sectors Potentials CDM & Offsets; Payment for International Services. Market-based Project developers, retailers & resellers of offsets Sumber: NEEDS report, DNPI & UNFCCC (2009)
National Landscape of International Public Finance in Indonesia Source: ODI Working Paper No.11, 2011
International Funds that have been Committed • Clean Technology Fund: USD 400 million (debt) • Forest Investment Program: USD 80 million (grant and soft loans) • Climate Change Program Loan (CCPL) • Step I: USD 500 million (JBIC & AFD) • Step II: USD 900 million (JBIC, AFD & WB) • Debt to Nature Swap • Germany: reduce EUR 12,5000,000 MoE obligate to do 2 environment programme: financial assistance for environmental investment for micro and small enterprises project • US: reduce USD 30,000,000 Tropical Forest Conservation Act (TFCA) implemented by CI-IP and Biodiversity Foundation (KEHATI) in Sumatera
Bilateral (USAID) agreement running by Private Sector • IMACs MMAF and Chemonics Inc. Resilience and CCA for Coastal area and fisherman • IFACs Tetra Tech ARD Deforestation and climate change • Bilateral (USAID) agreement running by Civil Society • Scale Resilience MercyCorps – URDI – MPBI - ISET West Sumatera, Lampung, DKI Jakarta, Maluku • Funds from Private Sectors (Rockefeller Foundation) running by Civil Society • ACCRN (Asian Cities Climate Change Resilience Network) MercyCorps – URDI Bandar Lampung, Semarang - ICCTF (grant) Total: USD 11,342,310 • DFiD/UK CCU: USD 9,518,110 • AusAID: AUD 1,404,470 • SIDA: USD 331,730 • UNDP: USD 88,000
Fund Disbursement and Allocation Available Fund as of 2012 Funds Approved by SC Proposed Budget to be considered in SC www.icctf.or.id Note: It is expected that all remaining fund under UNDP will be totally disbursed by end of 2014
Conclution Indonesia already have the commitment to financing Adaptation, although the amount was not as much as financing Mitigation
Recommendation • Need more capacity building for climate finance institution as beneficiaries of public finance that came from donor countries and national government budget (APBN). • Lack of information about climate change funding that has been accept (data and report). • Lack of understanding about the mechanism and disbursement of climate change finance. • Need more policies about climate change finance and trust fund to cope with the differences of donor countries or funding institutions disbursement system with government regulation.
Thank You… rachmi.dnpi@gmail.com www.dnpi.go.id