Climate Finance Readiness and ICCTF
Transcript of Climate Finance Readiness and ICCTF
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Presented by SYAMSIDAR THAMRIN (Deputy Director for Weather & Climate, BAPPENAS)
Indonesia Climate Change Trust Fund: Partnership for Achieving Climate Goal
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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:
1.Mainstreaming CC issues into
national, provincial & local
development planning
1.Implementing GHG emissions
mitigation and adaptation initiatives
Indonesia Climate Change Trust Fund (ICCTF)
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APBN: GOI’s Contribution
SOURCE OF FUNDING
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Achievements: • Reference for national peatland mapping • Technical guideline for GHG emission
measurement & degraded peatland management
• Capacity development on GHG emission & carbon stock measurement at local level
• Replication & up-scaling by local beneficiaries • Establishment of 214-hectare of Biomass
Energy Estate in Bangkalan, Madura • Development of Wood Pellet Industry business
model
Achievements: • Baseline of CO2 emission,
EEMIS, and technical guideline of energy conservation in steel and pulp & paper industries
• Implementation of energy conservation program by participating industries
Achievements: • Community radio programs on CC awareness • Trainings & modules for field extension workers of
agriculture and fishery • Curricula modules on climate change for all levels
of formal schools • Replication & up-scaling by central & local
government, CSOs • Model on Dengue Haemorragic Fever and Malaria
relation with climate change in five provinces • Capacity building on climate change-related health
issues for communities and health officers
Energy Conservation Public Awareness & Education Adaptation in Health Sector
Sustainable Peatland Management Community Forest & Energy Estate
ICCTF PROJECT 2010-2014
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Between 2010-2014, ICCTF has funded six pilot projects, with each project representing ICCTF’s priority windows: Land-based Mitigation, Energy and Adaptation. The first three projects between 2010-2011 are called as Phase I. ICCTF has since continued with Phase II, consisting of also three projects that are implemented between 2012-2014.
Phase I Projects (2010-2011) 1. Research and Technology Development of
Sustainable Peat Management to Enhance Carbon Sequestration and Mitigation of Greenhouse Gas Emissions
2. Energy Conservation and CO2 Emission Reduction in Industrial Sector
3. Public Awareness, Training and Education Program on Climate Change Issue for All Level of Societies in Mitigation and Adaptation.
Phase II Projects (2012-2014) 1. Sustainable Management of Degraded Peatland to
Mitigate Greenhouse Gas Emission and Optimize Crop Productivity
2. Health Vulnerability: Assessment, Mapping and Community-Based Adaptation on Dengue Haemorragic Fever and Malaria Diseases
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
ICCTF Funded Project 2010 – 2014
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Small Grant Programs 2014
In 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 to NGOs and research institutions working on climate change mitigation and adaptation projects. 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
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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
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PROJECT TYPE AND FOCUS AREAS
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NAMA project Proposed Activities Funding Opportunities
• Reduce GHG emission by increasing the level of energy efficiency of street lighting systems in Indonesian cities,
• Trigger broader implementation for financing through the Ministry of Finance’ Indonesia Investment Agency
(PIP) and create a bigger ESCO market.
Co-fund the implementation of transport demand management (TDM) measures: • Building ‘park and ride’ facilities, • Sidewalks and bicycle networks, • Introducing private vehicle restrictions.
SMART Street Lighting
SUTRI (Sustainable Transportation)
The NAMA Facility of Germany and United Kingdom
Solid Waste
• Introduce transformational changes in municipal solid waste management • Promote waste minimization and 3R
approach
Development partners, private
sector participation and technology
providers
Leverage private investments and public funds
MITIGATION INVESTMENT STRATEGY Implementation of NAMAs
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NAMA project Proposed Activities Funding Opportunities
• Introduce replacement of coal as primary fuel in cement production • Encourage the improvement of the
waste management system in Indonesia.
Cement NAMA Leverage private investments and public incentives
SWEET NAMA
• Introduce a better land management by planting kaliandra to enhance and enrich the soil. • Provide alternative energy sources
from biomass
Leverage private investments, community participations and public funds
MITIGATION INVESTMENT STRATEGY Implementation of NAMAs
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Value added services of the ICCTF
The ICCTF is the only Trust Fund institution with a legal status to receive donor funds.
1
Next to project specific monitoring and evaluation services, the ICCTF offers professional, efficient and transparent grant channeling.
2
ICCTF’s funding mechanism enhances direct participation with development partners, government and private sector.
3
Direct transfer of funds and direct access to funds are important features aligned with the Paris Declaration and the Green Climate Fund. 4
ICCTF will deploy commercial ERP system solutions that further increase transparency, reduce processing times and bureaucratic bottlenecks.
5
DANIDA is the first development partner that transfer funds to the ICCTF’s trustee/PDA (Bank Mandiri). This first direct transfer to the ICCTF is an important signal to others to follow this example.
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Eq.: Option for Financial Mechanism of SUTRI NAMA projects
Donors ICCTF
(Bappenas)
State Treasurer
(KPKN)
K/L (Ministries)
CSO’s/Universities/Private Sector
Local Governments
Communities
Grant Agreements
A B C
A: Funding to Kementerian Lembaga (Ministries); B: Funding to Civil Society Organizations C: Funding to Local Governments
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Toward NIE 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 starting to operate as fully National Trust Fund management structure
that comprises of a Board of Trustees (Majelis Wali Amanat/MWA), a National Fund Manager/trustee (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” and additional support from CDKN.
• Actively participate on GCF capacity building program
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TERIMA KASIH THANK YOU
www.icctf.or.id