Presented by SYAMSIDAR THAMRIN (Deputy Director for Weather & Climate, BAPPENAS)

Indonesia Climate Change Trust Fund: Partnership for Achieving Climate Goal

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)

APBN: GOI’s Contribution

SOURCE OF FUNDING

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

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

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

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

PROJECT TYPE AND FOCUS AREAS

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

11

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

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.

6

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

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

TERIMA KASIH THANK YOU

www.icctf.or.id