Agenda - Climate Policy Initiative...Costing of NDC implementation for selected sectors...
Transcript of Agenda - Climate Policy Initiative...Costing of NDC implementation for selected sectors...
8
Agenda13h10 -13h25
(UTC)
Introduction and overview of domestic mapping initiatives and tools
Adeline Dontenville, Land-use finance Lead, European Forest Institute
Chavi Meattle, Senior Analyst, Climate Policy Initiative
Padraig Oliver, Programme Officer, UNFCCC
13:25-14:10 Session 1: Using national climate finance tracking to drive increased policy
ambition, improved climate finance reporting and mobilization of resources
Moderator: Tom Beloe, SDG Finance Advisor, UNDP
14:10-14:55 Session 2: How national climate finance tracking can be leveraged to align
public and private actors’ investments with the Paris Agreement?
Moderator: Amal-Lee Amin, Director, Climate Change, CDC Group
14:55-15:00 Closing remarks
Barbara Buchner, Executive Director, Climate Policy Initiative
Introduction
Adeline Dontenville,
Land-use finance
Coordinator,
European Forest
Institute (EFI)
Chavi Meattle,
Senior Analyst,
Climate Policy
Initiative (CPI)
Padraig Oliver,
Programme Officer,
Climate Finance,
UNFCCC
Update of climate
finance mapping
and tracking efforts
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Climate Expenditure and Institutional Review (CPEIR)
Bangladesh, Benin, Bhutan, Cambodia, Chile , China (Hebei),
Colombia, Ecuador, El Salvador, Ethiopia, Fiji, Ghana, Honduras,
Indonesia, Kenya, Kiribati, Marshall Island, Morocco, Mozambique,
Nauru, Nepal, Nicaragua, Pakistan, Philippines, Samoa, Tanzania,
Thailand, Tonga, Uganda, Vanuatu, Vietnam
Climate Finance Mapping efforts
Climate Budget Tagging
Bangladesh, Cambodia,
Indonesia, Nepal,
Philippines, Pakistan,
South Africa, Thailand
Landscapes of
Climate Finance
Brazil, Cambodia,
Colombia, Côte d’Ivoire,
Czech Rep., DRC,
Ecuador, France,
Germany, India,
Indonesia, Kenya,
Latvia, Morocco, Papua
New Guinea, Poland,
South Africa, Vietnam
Investment and Financial Flows (IF&F),
Critical Investment analysis
Bangladesh, Colombia, Costa Rica,
Dominican Republic, El Salvador, Ecuador,
Gambia, Honduras, Liberia, Morocco,
Namibia, Niger, Nigeria, Paraguay, Peru,
Togo, Turkmenistan, Uruguay, Uzbekistan
Private Sector Climate
Expenditure Review (PCEIR)
Vietnam, Thailand, Ecuador, Chile
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Objectives and Coverage of Tracking Initiatives
Landscapes CPEIRs PCEIRs CBTs IF&Fs
Objective
Temporal
Coverage
Type of
Finance
Ex-post,
Ex-ante
Ex-post Ex-post,
forecasting
Present, Ex-post Ex-ante,
forecasting
Public and/or
Private
Public Private Public Public and private
Capture
dimensions of
climate finance
flows (sources,
intermediaries,
uses, instruments
etc.)
Policy analysis,
Institutional
review,
expenditure review
Review of private
sector
investments in
selected sector,
estimate
investment needs
Mainstreaming
climate change in
public financial management
Costing of NDC
implementation
based on climate
change impact by
sector
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Guidance Note on Tracking Domestic Climate Finance
• Note provides a step-by-step guidance on tracking
climate finance at the national level, sharing various
approaches, methodological frameworks, and best
practices.
• Coming soon!
• Kenya Landscape of Climate Finance (28th Jan)
• South African Climate Finance Landscape 2020 (25th Jan)
• Links to relevant material
• CPI - Guidelines for Building a National Landscape of
Climate Finance
• EFI and CPI - Land-use Finance Tool
• UNDP - Climate Public Expenditure and Investment
Review
• UNDP - Private Sector Climate Expenditure and
Institutional Review
• UNDP - Climate Budget Tagging
• UNDP - Investment and Financial Flows
Domestic climate finance tracking in the context of the Global Stocktake 2020 and
the enhanced transparency framework
Padraig Oliver,
Programme Officer, Climate Finance,
UNFCCC
Climate finance reporting under Enhanced Transparency Framework of the Paris Agreement
BTRs
Annex II Parties provide information on financial support provided:• Bilateral, regional and
other channels• Multilateral channels
2020 2022 2024 2026
Enhanced reporting under the Convention Enhanced Transparency Framework under Paris Agreement
Biennial Report
BR5
Biennial Transparency
Report
Biennial Update Report
Non-Annex I Parties may submit BURs at any time containing information on • finance received
BTRs
Developing country Parties should provide information on• financial support needed • finance received
Developed country Parties shall and other Parties that provide support should provide information on financial support through:• Bilateral, regional, and other channels• Multilateral channels• Private finance mobilised by public
interventions
Biennial Transparency
Report
Session 1: Using national climate finance tracking to drive increased policy ambition, improved climate finance reporting and mobilization of resources
Peter Odhengo
Senior Policy Advisor
on Climate Finance
Kenyan Treasury
Sarah McPhail
Director, Financial Sector
Policy
National Treasury of
South Africa
Diego Teca
Undersecretary for
Climate Change
Ministry of
Environment and
Water, Ecuador
Noor Syaifudin
Senior Policy
Analyst
Fiscal Policy
Agency (BKF) of
Indonesia
Moderator:
Tom Beloe
SDG Finance
Advisor, UNDP
MINISTERIO DE AMBIENTE Y AGUA
DOMESTIC CLIMATE
FINANCE MAPPING AND
PLANNING – CHALLENGES
AND OPPORTUNITIES
Ecuador´s progress on domestic
tracking initiatives
January 2021
MINISTERIO DE AMBIENTE Y AGUA
NDC
PLANACCNATIONAL MITIGATION PLAN
IMPLEMENTATION PLAN
LULUCF
MRV SYSTEM
(NATIONAL REGISTRY ON
CLIMATE CHANGE)
NATIONAL STRATEGY ON CLIMATE CHANGE
FINANCETECHNOLOGY
CAPACITIES
MEANS OF IMPLEMENTATION
GENDER APPROACH
WATER HERITAGE
NATURAL HERITAGEHEALTH
HUMAN SETTLEMENTS
STRATEGIC AND
PRODUCTIVE SECTORS
FOOD SOVEREIGNTY,
AGRICULTURE, LIVESTOCK,
AQUACULTURE AND FISHING
ADAPTATION MITIGATION
INDUSTRIAL PROCESSES
WASTE
ENERGY
AGRICULTURE
MEANS OF IMPLEMENTATION ADAPTATION MITIGATION
4
51
3
2
To identify gaps and financing opportunities.
To collect and present available information.
To align climate change priorities whit financing opportunities.
To get the basis for developing a system for MRV system.
To facilitate access and understanding.
It aims to optimize and accelerate the mobilization of resources.
OBJETIVES RELATED TO CLIMATE FINANCING IN ECUADOR
MINISTERIO DE AMBIENTE Y AGUA
• Climate finance institutional frameworks strengthened with methodological tools
• Mainstreaming of gender approach
• Disaggregation and costing of selected initiatives in Energy sector (NDC mitigations)
CLIMATE FINANCE METHODOLOGIESEcuador
CPEIR
IFF
PCEIR
PAST BASE LINE
FUTURE FORECAST
PRESENT REPORTING
Tagging system and monitoring platform for
climate investments
Public &Private
Costing of NDC implementation for
selected sectors
Opportunities and limitations to incorporate
climate change in the country’s budget and
planning process
Data to support country´s climate finance
Project with Ministry of Environment 2020 –2021 includes:
Climate Budget Tagging / monitoring
Gender mainstreaming
Session 2: How national climate finance tracking can be leveraged to align public and private actors’ investments with the Paris Agreement?
Nathan Fabian
Chairperson,
European Platform on
Sustainable Finance
Chief Responsible
Investment Officer, PRI
Chris Dodwell
Head of Policy and
Advocacy
Impax Asset
Management
Clifford Polycarp
Deputy Director,
Country
Programming
GCF
Francisco
Dall'Orso
Climate Change
Professional
Ministry of Energy,
Chile
Moderator:
Amal-Lee Amin
Director, Climate
Change,
CDC Group
Closing remarks
Barbara Buchner
Global Managing Director
Climate Policy Initiative
Thank you for participation!Funders
Ministry of Finance
The Republic of Indonesia
INDONESIA
Climate Budget Tagging
Center for Climate Finance and Multilateral Policy
Fiscal Policy Agency
Ministry of Finance
January 21st, 2020
Ministry of Finance
The Republic of Indonesia
Outline
01 Background
02 Indonesia NDC and Financing Issue
03 Climate Budget Tagging
04 Subnational Climate Budget Tagging
05 Development Plan
Ministry of Finance
The Republic of Indonesia
Background
1992 -
UNFCCC
1997 –
Kyoto Protocol
Kyoto, Japan
2009 –
Copenhagen Accord
Copenhagen, Denmark
2007 –
Bali Road Map
Bali, Indonesia
2016 –
Paris Agreement
Paris, France
2018 –
Katowice Climate Package
Katowice, Poland
National Action Plan on
GHG Emission Reduction
(RAN-GRK), 2011
National Action
Plan on Climate
Adaptation (RAN-
API), 2014
Indonesia Nationally
Determined Contribution
(NDC), 2016
National Mid-Term Development Plan 2020-2024
National Priority No.6: Develop environment, improve
disaster and climate resilience.
Priority Program: Low Carbon Development, Environment,
Disaster, and Climate Resilence
National Action Plan on Sustainable
Development Goals, 2017
Climate Change Action Based on SDGs 13
VULNERABILITY
COMMITMENT
1960 2000
25.2
26.6
26
1980
(YEAR)
(An
nu
al M
ea
n T
em
pe
ratu
re)
(°C
)
Indonesia is vulnerable to the adverse impacts of climate change. The average temperature across the
entire region of Indonesia for the past 100 years shows an increasing trend. It is believed to increase the risk
for hydro-meteorological disasters, which make up more than 80% of the disaster occurrence.
Therefore, Indonesia has strong commitment to tackle climate change. It is
seen through its national regulations and policies active participation on
global actions.
Mitigation target:
29% (conditional)
Up to
41% (conditional)
Ministry of Finance
The Republic of Indonesia
Indonesia NDCBy 2030, Indonesia is
determined to reduce its
Green House Gasses
Emission by:
Unconditional
emission reduction against BAU scenario
conditional
subject to international support
2 9 %
up to
41 %
314497 11 9
3.25650 398 26 4
2.75
(MTonCO2e)
2 9 %IPPUFOREST ENERGY & TRANSPORT WASTE AGRICULTURE
PROGRESSBaU Emission Level in 2030 2.869 Mton CO2eq
Actual Emission Level (Include FOLU) in 2017 1.154 Mton CO2eq
Actual Emission Level (Exclude FOLU) in 2017 861 Mton CO2eq
Emission Reduction in 2017 706 Mton CO2eq
Emission Reduction from BaU (emission Level in 2030) 24,6%
FINANCING ISSUEBased on the 2018 Second Biennial Update Report (BUR),
Indonesia submitted an estimated financing needs to achieve
the emission reduction target in 2030 reaching USD247,2 billion
or around Rp3.461 trillion (Rp266,2 trillion/year).
Climate Financing Needs To
Achieve NDC Target
(in Billion USD)
Energy &
Transportation,
236.2
FOLU, 5.6
Industrial Processes & Product Use,2.9
Waste, 2.17
Agriculture,
0.38
Ministry of Finance
The Republic of Indonesia
Climate Budget Tagging (CBT)Initiatives and Development
Implementation of
Climate Mitigation
Budget Tagging in
ADIK system
2016
Study of Mitigation
Fiscal Framework
(MFF) by FPA
2012
Study of Low
Emission Budget
Tagging and Scoring
System (LESS) by
FPA
2013
• Collaboration between FPA &
UNDP/UNEP in the Sustainable
Development Finance Program.
• Study of Green Planning &
Budgeting
2014
FPA Published Climate
Change Mitigation
Budget Report 2016-
2017
2017201820192020
• FPA launch the Public Climate
Finance Report FY 2016-2018
• Development of Regional
Climate Budget Tagging
• Implementation of
Climate Adaptation
Budget Tagging
• 1st Global Green Sukuk
Issuance based on CBT
data
2nd Global Green Sukuk
Issuance and Green
Sukuk Retail Issuance
based on climate budget
tagging data
Since 2012, the Ministry of Finance has carried out several policy studies in terms of public funding for
climate change as the basis for climate finance policy. One of the study suggested the need of climate
budget tagging to be implemented.
According to the study and as the effort to increase transparency of public funding for climate change in
Indonesia, in 2016 the Government of Indonesia c.q. The Ministry of Finance initiated the climate change
budgeting (Climate Budget Tagging) for state budget.
The implementation of climate budget tagging (a process of marking, tracking and identify climate change
outputs and budgets in planning and budgeting documents) required collaboration between the Ministry of
Finance, Ministry of Planning, and the Ministry of Environment and Forestry by involving a number of related
ministries / institutions, through the KRISNA system (Planning and Budgeting System Collaboration).
Process
Ministry of Finance
The Republic of Indonesia
Since 2016, climate budget was allocated around Rp95,15 trillion per year or 4,1% to State Budget per year. Accumulatively, Government of Indonesia already spent the climate budget around Rp347,01 trillion since 2016 until 2019.In 2016 and 2017, government only spent the climate budget tagging for mitigation actions. In 2018, the climate budget tagging for adaptation actions just been implemented.
Climate Budget Tagging Result
In 2020, even in the midst of pandemic, government continues to encourage climate spending in state budget. The allocation of climate budget around Rp77,7 trillion. Around 57% was allocated for mitigation actions, and the rest for adaptation actions.
In 2020, climate budget allocation was contracted due to refocusing and budget reallocation policy for COVID-19 handling program.
72.4
95.6
132.5
97.7
77.7
52.4
85.0
126.0
83.5
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
2016 2017 2018 2019 2020
Rp
Tri
llio
n
Climate Budget Allocation Climate Budget Realization
Mitigation Spending
57%
Adaptation Spending
43%
Climate Budget Allocation and Realization (Rp Trillion) Climate Budget Allocation in 2020
Ministry of Finance
The Republic of Indonesia
Based on mitigation sectors, government mitigation spending was dominated for energy and transportation. Government already spent around Rp111,8 trillion (83,5%) to support the development of renewable energy infrastructures, energy efficiency programs, sustainable transports and infrastructures. Meanwhile, spending for FOLU was Rp4,4 trillion (3,3%), Waste around Rp6,9 trillion (5,1%), Agriculture was Rp10,5 trillion (7,8%), and IPPU was Rp0,3 trillion (0,2%).
If we refer to the estimation of climate financing needs based on Second Biennial Update Report (2018), the average of climate financing needs for Indonesia worth Rp266,6 trillion per year. On average, for the past 5 years, the government mitigation spending was contributed for 22,6% per year to national climate financing needs to achieve NDC target.
Agriculture
Forestry and Land Use (FOLU)
Energy and Transportation
IPPU
Waste
0
10
20
30
40
50
60
70
80
90
100
Rp0.00 Rp20.00 Rp40.00 Rp60.00 Rp80.00 Rp100.00 Rp120.00
Mit
igat
ion
Ou
tpu
ts
Climate Budget Realization (Rp Trillion)
Government Mitigation Spending by SectorsUsing Climate Budget Realization (2016-2019)
19.7%
31.9%26.0%
18.8% 16.7%
80.3%
68.1%74.0%
81.2% 83.3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2016 2017 2018 2019 2020
Mitigation Spending on State Budget Financing Gap
Government Mitigation Spending Contribution in National Climate FinanceBased on Financing Needs in Second Biennial Update Report
Ministry of Finance
The Republic of Indonesia
CBT and Green Sukuk
Green Sukuk is an instrument to finance
climate change actions and also achieve
the SDGs target.
Climate Budget Tagging data is used
as reference / underlying asset for
the issuance of Green Sukuk.
Projected Emission
Reduction from Global
Green Sukuk Issuance5,7 millions ton CO2e
First Issuance 2018
3,2 millions ton CO2e
Second Issuance 2019
8% 6%
17%
62%
7%5%
27%
11%
49%
9%
Renewable
Energy
Energy Efficiency Improving
Climate
Resilience for
Vulnerable Areas
Sustainable
Transportation
Waste
Management and
Waste to Energy
2018 2019
Underlying Assets
Underlying asset of 2020 Issuance
1st Global Green Sukuk
USD1,25 billion
2nd Global Green Sukuk
USD750 million
1st Green Sukuk Retail (ST-006)
Rp1,46 trilion
3rd Global Green Sukuk
USD750 million
March 2018
Feb 2019
Nov 2019
June 2020
5 years tenor
2,3% Coupon
• Lowest coupon rate for 5 years tenor
• 7,37x Oversubscribed
Resilience to Climate
Change for Highly Vulnerable
Areas and Sectors/Disaster
Risk Reduction
Waste to Energy and
Waste Management
Sustainable Transport
Ministry of Finance
The Republic of Indonesia
Subnational CBT
MAINSTREAMING CLIMATE CHANGE AT A REGIONAL LEVEL
REGIONAL PLANNING AND BUDGETING
(RKA OPD and APBD)
REGIONAL GHG INVENTORY AND REGIONAL CLIMATE
CHANGE BUDGET PROPORTION
ACHIEVEMENT OF NDC, RAD-GRK, RAN-API AND PPRKD TARGET
(Regional Low Carbon Development Program)
FRAMEWORKTo date, there have been 34 provinces in Indonesia thatalready had RAD-GRK (Subnational Mitigation Plan).
As CBT is also important for planning and budgeting inthe regions, central government encourages subnationalgovernment to implement CBT.
It is conducted by through literacy program forsubnational government which objectives are to increaseawareness of subnational governance on climate actions,to disseminate government climate funding policies andto develop capacity on CBT.
Fiscal Policy Agency (BKF-MoF) has compiled aguidebook consisting of CBT and start the program for 11Sub National Government as pilots in 2020.
Ministry of Finance
The Republic of Indonesia
Development Plan
Climate Budget
Tagging
Continue Literacy Program for Subnational Government
Support for the development of sustainable finance
Integration with emission reduction data
Ministry of Finance
The Republic of Indonesia
INDONESIA
Thankyou
Center for Climate Finance and Multilateral Policy
Fiscal Policy Agency
Ministry of Finance
January 21st, 2020