Innovative approaches to financing for inclusive green returns: Indonesia case BASAH HERNOWO Director for Forestry and Water Resources Conservation Indonesia National Development Planning Agency Presented at Forest Asia Summit, 5 May 2014, Shangri-La Hotel Jakarta Ministry of National Development Planning
23
Embed
Innovative approaches to financing for inclusive green returns: Indonesia's case
This presentation by Basah Hernowo, Director for Forestry and Water Resources Conservation, Indonesia National Development Planning Agency, given at the Forests Asia summit during the discussion forum "Investments: Innovative approaches to financing for inclusive green returns " introduced the Indonesia Climate Change Trust Fund, explained about the Forest-Climate Finance Institution and the ICCTF pilot project from 2010 to 2011 and how the Green Climate Fund is applied. It furthermore introduces a plethora of other projects that have launched during the "Innovation Phase".
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Innovative approaches to financing for inclusive green returns:
Indonesia case
BASAH HERNOWODirector for Forestry and Water Resources Conservation
Indonesia National Development Planning Agency
Presented at Forest Asia Summit, 5 May 2014, Shangri-La Hotel Jakarta
Ministry of National Development Planning
www.icctf.or.idIndonesia Climate Change Trust Fund
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: 1.Mainstreaming CC issues into national, provincial & local development planning2.Implementing GHG emissions mitigation and adaptation initiatives
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: 1.Mainstreaming CC issues into national, provincial & local development planning2.Implementing GHG emissions mitigation and adaptation initiatives
What makes ICCTF Unique
1. Strategic Role• Implementation of RAN & RAD-GRK• Support to implementation of RAN-API• NAMAs support facility for Indonesia
2. Triggering Initiatives • Alternative funding mechanism to blend
international and domestic funds• Strategic and innovative pilot projects funding
for further replication
3. Direct AccessEndorsement to be National Funding Entity accredited
with the GCF
What makes ICCTF Unique
1. Strategic Role• Implementation of RAN & RAD-GRK• Support to implementation of RAN-API• NAMAs support facility for Indonesia
2. Triggering Initiatives • Alternative funding mechanism to blend
international and domestic funds• Strategic and innovative pilot projects funding
for further replication
3. Direct AccessEndorsement to be National Funding Entity accredited
with the GCF
Investment Windows
Land Based Mitigation
Energy Resilience and Adaptation
Indonesia Climate Change Trust Fund
www.icctf.or.idIndonesia Climate Change Trust Fund
Forest-Climate Finance Institution
Government’sState Budget
International Development Cooperation
Bilateral Multilateral
Ministry of National Development Planning (Bappenas)
REDD+ AgencyMinistry of Forestry
Funding Source
Responsible Ministry/ Agency
Institution
Disbursement Mechanism
Focus Area
Forest Management Unit
Indonesia Climate Change Trust Fund
(ICCTF)
Millennium Challenge Account Indonesia
(MCAI)
Fund for REDD+ Indonesia (FREDDI)*
• Direct grant to FMU through state budget mechanism
• Joint venture with communities, cooperatives, private comp.
Grant to Executing Agency (central govt.) & Implementing Agency (central & local govt., academia, CSO, private)
• Grant to community; • Loan to private sector.
Grant, loan, equity investment, performance base.
non-timber forest products, environmental services, community timber products, carbon business
1. Land Based Mitigation2. Energy
3. Resilience & Adaptation
1. Participatory Land Use Planning;
2. Technical and Oversight Assistance
3. Financial Facility4. Green Knowledge
Implementation of REDD+ National Strategy
Other Gov’t Ministries/ Agencies
Develop-ment
Programs
Grant, research, technical assistance
1.Mitigation
2.Adaptation
*) Under discussion
www.icctf.or.idIndonesia Climate Change Trust Fund
www.icctf.or.idIndonesia Climate Change Trust Fund
Sustainable Peatland Management 1.Banjarbaru, South Kalimantan2.Jabiren, Central Kalimantan3.Muaro, Jambi4.Pelalawan, Riau
11. Sidoarjo, East Java12. Kediri, East Java13. Kudus, Central Java14. Muara Enim, South
Sumatra15. Pekanbaru, Riau16. Tanjab Barat, Jambi17. Porsea, North
Sumatra18. Deli, North Sumatra
Energy Conservation1. DKI Jakarta, Jakarta2. Tangerang, Banten3. Serang, Banten4. Bekasi, West Java5. Bandung, West Java6. Bogor, West Java7. Klaten, Central Java8. Semarang, Central Java9. Surabaya, East Java10. Gresik, East Java
Public Awareness & Education
1. Serdang Bedagai. 2. North Sumatra 3. Batu, Malang, East Java4. Bau-Bau, SouthEast Sulawesi5. Kamal Muara, North Jakarta6. Indramayu, West Java
ICCTF Pilot Project 2010-2011
www.icctf.or.idIndonesia Climate Change Trust Fund
Health Vulnerability: Assessment, Mapping, and Community Based Adaptation on Dengue Hemorrhagic Fever and Malaria Diseases (ICCTF-MoH)1. West Sumatra2. DKI Jakarta3. East Java4. Bali5. Central Kalimantan
ICCTF On-going Projects 2012-2014
Sustainable Management of Degraded Peatland to Mitigate Green House Gas Emissions and Optimize Crop Productivity (ICCTF-MoA)1.Papua 4. Riau2. Kalimantan Barat 5. Jambi3. Kalimantan Tengah
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 (ICCTF-MoFor)1. Bangkalan, Madura
www.icctf.or.idIndonesia Climate Change Trust Fund
Toward NFE Application for the Green Climate Fund
Lessons learned•Organizational set up needs to be clear and certain (The ICCTF is transitioning to become a self-managed National Trust Fund)
– ICCTF is currently at the final stage on a transition plan to a National Trust Fund management structure that comprises of a Board of Trustees (Majelis Wali Amanat/MWA), a National Fund Manager (Pengelola Dana Amanat/PDA), a Secretariat and a Supporting Unit of State Budget Owner (Kuasa Pemegang Anggaran/KPA).
•Applicants need to be able to meet fiduciary standards related to financial management (transparency and efficient spending is key)•requires existing successful track record in delivering development programs.•Further strategically important investments are made in the institutional development of the ICCTF through funds provided by the German government to enhance “climate finance readiness”
www.icctf.or.idIndonesia Climate Change Trust Fund
Milestones ICCTF 2020
www.icctf.or.idIndonesia Climate Change Trust Fund
SGP (Small Grants Program) Projects as Innovation Phase
Enhancing Carbon Sequestration in
Community Forest as a Landbased
Mitigation Action (ARuPA, Bantul)
Public-Private Partnership
Model in Climate Change Mitigation
Action in Conservation Area
(FoF-IPB, Riau)
Adaptation on Seaweed
Aquaculture (LSM HUMANIORA,
Kendari)
Planning and Information System for Street Lighting Energy Efficiency (Politeknik ATMI,
Surakarta)
Strengthening Climate Information System for Farmers and Fishers (PIKUL,
Kupang)
Strengthening Coastal Community Resilience through Participatory
Multimedia Technology (Bingkai)
www.icctf.or.idIndonesia Climate Change Trust Fund
1. ICCTF pools and aligns resources provided either by Indonesian government or by private sector entities to support a mutually agreed ‐portfolio of projects and programmes.
2. ICCTF will act as a financial portal to receive and distribute funds from international Funds, development partners, and other climate change funding mechanisms (Green Climate Fund, NAMAs Facility, Adaptation Fund, EU Global Efficiency and Renewable Energy Fund, etc).
3. ICCTF could be the main vehicle to fund the programs/activities of internationally supported NAMAs (up to 41% target).
Role of ICCTF: ‘NAMAs Support Facility’
Note: ICCTF as ‘Climate Change Finance Registry’ is decided on Policy Coordination on July 15, 2013
www.icctf.or.idIndonesia Climate Change Trust Fund
Proposed Approach for PPP
ICCTF will support (capacity building, FS development etc) directly the project on the pipeline – special procedure apply
ICCTF is ready with procedure & SOP for open tender for all projects
ICCTF is ready to finance not only ‘enabling condition’ but also investments needed
Indonesia innovative approaches to financing: Climate Change and Forest
Sustainable forest ,
improved community livelihood ,
while reducing carbon
emission
Examples from ICCTF on Biomass Energy Estate
Forest Management Unit or Kesatuan Pengelolaan Hutan (KPH) Gerbang Lestari at Bangkalan, Madura plants Calliandra callothyrsus or Red Calliandra to produce wood pellet.
FOREST MANAGEMENT UNIT (FMU)/ KESATUAN PENGELOLAAN HUTAN (KPH)
Forestry Sector Main Challenge:Contribution to the Sustainable Development
• Generating revenues from forest resources through timber and non-timber forest products, biodiversity, food, energy, and medicine
• Forest based clustery industry to improve the synergy between up-stream and down-stream industry
• Provide employment opportunities• Reduce poverty on the communities living inside and
surrounding forest areas• Environmental and biodiversity protection, including
development of environmental services• Implementation of good forest governance
Forest Management Unit (FMU) or Kesatuan Pengelolaan Hutan (KPH)
FMU FINANCING SCHEME FOR SUSTAINABLE FOREST MANAGEMENT