Indonesian NAMAs Financing Support (INFIS)

Indonesian NAMAs Financing Support (INFIS)
Indonesian NAMAs Financing Support (INFIS)
Indonesian NAMAs Financing Support (INFIS)
Indonesian NAMAs Financing Support (INFIS)
Indonesian NAMAs Financing Support (INFIS)

Objective

  • Support the Government of Indonesia to better implement Nationally Appropriate Mitigation Actions (NAMAs)
  • Implement NAMAs through variety of public and private financing mechanisms so that it can achieve the national Greenhouse Gas (GHG) emission reduction target

Description

Indonesia is one of the first countries worldwide to have established a National Climate Fund, the Indonesian Climate Change Trust Fund (ICCTF). The ICCTF reflects the need to pool and coordinate funds at the national level for the implementation of the Nationally Appropriate Mitigation Actions (NAMAs) within the context of the National Climate Change Mitigation Action Plan (RAN-GRK) and to support the implementation of the Adaptation Action Plan (RAN-API). Set up in 2009 by the Government of Indonesia (GoI), ICCTF underwent from 2009-2014 the so-called “PREP-ICCTF” phase, during which UNDP acted as the interim trustee of the ICCTF. Objective of this phase was to build up the necessary processes and organisational capacity of the Indonesian Government to self-manage the trust fund in a subsequent phase. In 2015, the management was handed over to a unit within the Ministry of Development Planning (Bappenas). Starting from this basis, the project intends to further develop the ICCTF in its institutional arrangements and mechanism as well as in its procedures and capacities to enhance access of local public and private sectors to international climate finance according to good financial governance principles.

Field of intervention

  • The ICCTF is conceptualized as a public financing mechanism for the financing of NAMAs.
  • The capacities of ICCTF for the implementation of the public financing mechanism are developed.
  • Private financing mechanisms for the Implementation of NAMAs are identified and adapted to the Indonesian context.
  • The inter-institutional coordination for the financing of national measures via a combination of public and private financing mechanisms is improved.

Targeted beneficiaries

Direct target groups:

  • Ministry of National Development Planning (BAPPENAS), Ministry of Finance, Financial Service Authority (OJK), ICCTF and local institutions.

Indirect target groups:

  • All beneficiaries of the ICCTF as a public finance mechanism for supported NAMAs.
  • The Indonesian population that would benefit from low emissions growth programs as well as the international community due to enhanced mitigation actions by Indonesia.

Achievements

  • Recommendation on legal options for an improved governance of the ICCTF
  • ICCTF Grant Channelling Procedure
  • ICCTF Accounting Manual
  • Assessment on the compliance of the ICCTF to the GCF standards
  • Business plan for the ICCTF
  • Capacity building for the ICCTF has been provided on various aspects: grant channelling, project cycle management, financial and operational procedures, international climate finance, Green Climate Fund (GCF), renewable energy finance, fraud, procurement, monitoring evaluation reporting (MER), knowledge management, international exchange has been facilitated for the ICCTF for example at COP, etc.
  • Fundraising for the ICCTF (resulted in the current fund managed by the ICCTF)
  • NAMA Summit has been conducted in 2014
  • Analysis and stakeholder discussions on the barriers for investment in renewable energy and energy efficiency projects
  • Stakeholder dialogue on renewable energy finance (facilitated by Frankfurt School of Finance and Management, and E-Quadrat)
  • Study on identifying factors inhibiting local banks to employ project finance for renewable energy projects
  • Stakeholder dialogue on mitigation actions in land-based sector

Knowledge Product / Innovations

COUNTRY

Indonesia

DURATION

December 2013 - October 2018

Contact Person