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CLIMATE CHANGE: CAPACITY BUILDING AND FINANCING Endah Murniningtyas Deputy Minister for Natural Resources and Environment Presented at the INTERNATIONAL WORKSHOP ON FOREST CARBON EMISSIONS JAKARTA 3-5 MARCH 2015

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CLIMATE CHANGE:CAPACITY BUILDING AND

FINANCING

Endah MurniningtyasDeputy Minister for Natural Resources and Environment

Presented at theINTERNATIONAL WORKSHOP ON FOREST CARBON EMISSIONS

JAKARTA 3-5 MARCH 2015

CLIMATE CHANGE ACTIONS

NATIONAL ACTIONS

NATIONAL MITIGATION ACTIONS

LOCAL MITIGATION

ACTIONS

LOCAL MITIGATION

ACTIONS

NATIONAL ADAPTATION

ACTIONS

15 STRATEGIC ACTION AT THE

LOCAL LEVEL

CAPACITY BUILDING

• What is GHG

• Why need to be taking care ofAWARENESS

• Sources, why/in what way

• What to do

• Who/what institutions, partnersKNOWLEDGE

• Plan the activities to be funded and support –mainstream into the development plan

• Estimated emission reductions – format

• Monitor the activities – results – report format

• Bimonthly-quarterly workshop

• Secretariat RAN/AD GRK for support at anyti

KNOWHOW

COLLABORATIONS

National Coordinating team for CC

Experts: national and

local

RAN/RAD GRK SECRETARIATE

M-A action implementations

GOVERNMENT BUDGET

SUPPORT FROM

PARTNERS:JICA, GIZ,

CDKN, ETC

CC FUNDING

6Presented at the Kick-off Meeting of Asia Pacific Gateway to Climate Change and Development,

Bangkok, Thailand, 23 April 2008

RPJMN

2004-2009

RPJMN

2010-2014

RKP

2007

RKP

2008

RKP

2009

RKP

2010

RKP

2011

RKP

2012

RKP

2013

RKP

2014

GovFunding

Loan GrantComm./private/

NGO/CSRCDM

Debt Swap

FUNDING

Climate Change Program

RPJMN’s2015-…

Planning and Funding Mechanism for

Climate Change Program

ICCTF

Climate Change Funding in State Budget

No. Activity RKP 2011 (USD BILL.)

RKP 2012(USD BILL.)

RKP 2013 (USD BILL.)

RKP 2014(USD BILL.)

Total 2011-2014(USD BILL)

1 Adaptation Activities 1.37 1.63 1.73 1.64 6.37

2 Mitigation Activities 0.74 0.47 2.89 5.57 9.67

3 Supporting Activities 0.11 0.13 0.15 0.15 0.54

TOTAL 2.22 2.23 4.77 7.36 16.58

Total budget allocation for climate change in Annual Development Plan (RKP) 2011-2014 is USD 16.58 BILLIONS, exceeding USD 11.03 BILLIONS budget allocated in RPJMN 2010-2014 after issuance of Perpres No. 61/2011 on RAN-GRK, distributed in 16 line mInistries/ agencies

7

No. Activity RPJMN 2010-2014 (USD BILL)

1 Adaptation Activities 6.84

2 Mitigation Activities 3.79

3 Supporting Activities 0.40

TOTAL 11.03

Indicative budget for climate change in National Medium Term Development Plan (RPJMN) 2010-2014 is USD 11.03 BILLIONS

before issuance of Perpres No. 61/2011 on RAN-GRK, distributed in 16 line ministries/agencies

1. Strategic Role

• Implementation of RAN & RAD-GRK

• Support to implementation of RAN-API

• NAMAs support facility

2. Triggering Initiatives

• Alternative funding mechanism to blend

international and domestic funds

• Strategic and innovative pilot projects

funding for further replication

3. Direct Access

Endorsement to be National Implementing Entity

for enhance direct access (eq. AF, GCF)

Investment Windows

Land Based Mitigation

Energy Resilience and Adaptation

What makes ICCTF Unique

Establishment :

3 September 2009

Funding:

Blend the state budget and

international contribution

Goal:

To support the GoI efforts to

reduce GHG emissions, move

the country towards a

low‐carbon economy, and

adapt to the negative impacts

of climate change.

Purpose:

Mainstreaming CC issues

into national, provincial &

local development planning

Implementing GHG

emissions mitigation and

adaptation initiatives

Indonesia Climate Change Trust Fund (ICCTF)

Establishment of The LWA ICCTF

Ministerial Regulation (Permen) No. 3/2013 on the

establishment of Indonesia Climate Change Trust

Fund/Lembaga Wali Amanat Dana Perubahan Iklim;

Ministerial Decree (Kepmen) No.33/M.PPN/HK/03/2014

on ICCTF Board of Trustee;

The board includes representatives of

government, private sector, universities, NGO and

contributing donors;

Bank Mandiri is the National Fund Manager.

APBN: GOI’s

Contribution

FLOW OF FUNDING

*) UK, AusAid, SIDA, Denmark, UNDP, USAID, Germany, CDKN

*)

Between 2010-2014, ICCTF has funded 6 (six) pilot projects, with each projectrepresenting ICCTF’s priority windows: Land-based Mitigation, Energy and Adaptation.

Phase I Projects (2010-2011)

1. Research and Technology Development of Sustainable Peat Management to Enhance Carbon Sequestration and Mitigation of Greenhouse Gas Emissions - (Ministry of Agriculture)

2. Energy Conservation and CO2 Emission Reduction in Industrial Sector - (Ministry of Industry)

3. Public Awareness, Training and Education Program on Climate Change Issue for All Level of Societies in Mitigation and Adaptation – (BMKG)

Phase II Projects (2012-2014)

1. Sustainable Management of Degraded Peatland to Mitigate Greenhouse Gas Emission and Optimize Crop Productivity – (Ministry of Agriculture)

2. Health Vulnerability: Assessment, Mapping and Community-Based Adaptation on Dengue Haemorragic Fever and Malaria Diseases –(Ministry of Health)

3. Enhancing Sustainable Management of Community-Based Wood Pellets Production as Biomass Energy to Support Low Carbon Economy and Climate Change Mitigation in Bangkalan, Madura, East Java – (Ministry of Forestry)

1. ICCTF Funded Project 2010 – 2014

Achievements and Results

2. Small Grant Programs 2014In May 2014, ICCTF’s Steering Committee agreed to fund six projects under Small Grant Program (SGP) scheme.

With the SGP scheme, ICCTF channels around Rp 500 million per project to NGOs and research institutions working on climate change mitigation and adaptation projects

6 (six) NGOs : Yayasan Arupa, IPB, Politeknik ATMI, Yayasan Humaniora, Yayasan Pikul, and Bingkai Indonesia.

The SGP marks a milestone in ICCTF’s portfolio as it is the first time the trust fund channels funds to NGOs and research institutions

3. Other Activities

1.Initiate and engage policy dialogues todevelop national and local policies on GHGemission reduction among stakeholders.

2.Extensive public relation activities, includingactive participation at COP, otherinternational events, journalist & mediaaward, the website (http://www.icctf.or.id),etc.

Best Practice and Lessons Learned The establishment of ICCTF is strategic and in-line with the

international trend of establishing national funding entities to

manage and coordinate international sources of climate change

financing;

Indonesia was amongst the first countries to set up a dedicated

nationally administered institution to direct finance to it’s climate

change response strategies;

ICCTF model has attracted international attention and countries who

want to learn to set up trust fund (eg. Columbia, Philippines, Vietnam,

Spain and others;

The collaboration with the media to disseminate information and

communication the message on climate change, so that can attract a

positive response from the private sector and local government.

Milestones of the ICCTF (2014-2020)

2010-2013

Innovation Phase : institutional development:

- PREP-ICCTF

- Executing pilot projects

2014-2015

Transformation Phase:

- Developing as national trust fund

- Pioneering and up-scaling to private sector

2016-2017

Co-financing with private sectors, channels funds with others

2018-2020

-Fund channeling for international climate funds (as NIE)

-Access to other international climate funds

The Way Forward

Implementation of Business Plan for 2014 – 2020;

The GOI contribution: approx. USD1.5 million;

Fundraising activities to secure new financial commitment

continue, targeting at international funds, development

partners, and other climate change funding mechanisms

e.g.:

Adaptation Fund

Green Climate Fund,

NAMAs Facility,

EU Global Efficiency

Renewable Energy Fund,

etc

TERIMA KASIH

www.bappenas.go.idwww.icctf.or.id