ICCTF Indonesian Climate Change Trust Funds

Vrilly Rondonuwu

Assistant for Assistant Minister of Environment for Global Environmental Affairs and International Cooperation

Ministry of Environment Republic of Indonesia

Paris, 21 April 2010

• Indonesia is vulnerable to climate change (an archipelagic country with thousands of low-lying islands which are sinking/will sink, including the coasts of Java island)

• Indonesia as a developing country has done and will continue its efforts to

develop resilience of the country and the society from the impacts of climate change

• Indonesia can play an important role in the global efforts of combating

climate change. • Indonesia is seriously combating climate change by integrating CC

consideration in our development plan, both national and provincial development plan

• ‘20 Years Climate Change Sectoral Roadmap (20-CCSR)’ is being

finalised before Copenhagen, prepared for Mid-term Development Plan 2010-2014. The Government of Indonesia has encouraged that line ministries develop sectoral programs and cross-sectoral programs to take into consideration climate change programs, to be included in the Roadmap.

Background

ICCTF - Vrilly Rondonuwu

Indonesia’s vulnerability to climate change impacts

Sea level rise & land inundation threatens coastal zones North coast Java, south Kalimantan, west Sumatra

Water changed water balance leads to droughts and floods – regionally

differentiated

Agriculture food security threatened, and declining productivity in particular rice

cultivation

Health spread of diseases correlated to effects of climate change (malaria,

dengue, cholera, diarrhea etc)

Vulnerability assessment method developed First national assessment and scientific basis for the roadmap V-A in “hotspots” proposed

03/26/09 Seite

Linkage between Roadmap and Development Plan Documents

Department Strategy

Department Plan of Actions

MTDP National 2010-2014 Plan of

Actions

National budget (APBN)

Provincial Budget (APBD)

Plan of Actions

provincial

MTDP provincial

LTDP National

2005-2025

ROAD MAP Climate Change

2010-2030

GLOBAL

WARMING

IPCC MODEL

LTDP (provincial/local)

Strategies SKPD

Plan of Actions SKPD

Risk Analysis of local areas

Indonesia’s national budget for climate change for 2010 reached 500

million dollars

Note: LTDP: Long Term Development Plan MTDP: Mid-term Development Plan

The need for integration of adaptation and mitigation of climate change into development plan

Scientific Basis

Vulnerability Assessment

Impact Assessment

Developing Strategies of Adaptation

Priority Sectors for adaptation:

Agriculture, Ocean, Health, and Water

Resources

Current Emission

Emission Reduction Target

Developing Strategies of Mitigation

Priority Sectors for mitigation:

Forestry, Energy, Industry, Transportation

and Waste

Monitoring and E

valuation

National Development Plan

Roadmap and ICCTF 14 September 2009 Indonesia launched Indonesia

Climate Change Trust Fund (ICCTF) to overcome emerging and immediate needs of Climate Change Sectoral Roadmap program investments – Ministerial Decree no. 44//M.PPN/HK/09/2009 – Will provide illustrative estimates of the

dimension of economic climate change impacts, costs, and possible benefits

– A number of donors have pledged their support to the Trust Fund

ICCTF - Vrilly Rondonuwu

Projects

Programs

Gov. Annual Budget

Foreign Loans/ Grants

Mid-Term Plan

2010-2014 Long term

plan 2004-2025

Mid term plan 2004-2009

Annual plan 2009

Climate Change

Mainstreaming climate change into the national development agenda

ICCTF

Energy Forestry

Resilience

ICCTF is linked to national budget, roadmap and Mid term plan

ICCTF - Vrilly Rondonuwu

 Priority Sectors 1. Agriculture 2. Coastal, ocean and fishery 3. Energy 4. Forestry Secondary Sectors 1. Health 2. Transportation 3. Infrastructure 4. water 5. Industry Cross Cutting Issues 1. Research and Technology 2. National security 3. Biodiversity 4. Poverty  

Climate change roadmap: Integrating Climate Change into National Development Planning

Current Status

Policy instrument

and regulation Program Project Funding scheme

Capacity building

Objectives Mainstreaming climate change

into development

planning

CLIMATE CHANGE ROADMAP

ICCTF • The goal of the ICCTF is to support the GOI's efforts to reduce

emissions, move towards a low-carbon economy and adapt to the impact of climate change.

• The purpose of the ICCTF is to attract, manage and mobilise funding to contribute efficiently and effectively to 1) the mainstreaming of climate change issues in national, provincial and local development planning and 2) the implementation of mitigation and adaptation climate change initiatives.

• The ICCTF operates across 3 priority windows: energy, forestry/peatlands (mitigation) and focuses on adaptation and resilience initiatives in agriculture, health, coastal zone management and water resources.

ICCTF - Vrilly Rondonuwu

ICCTF • Principles:

– transparency in the governance of the fund with independeng monitoring, evaluation and financial audits.

Programs carried out will be monitored and evaluated by the Steering Committee, and audited by independent auditor appointed by the government.

Annual review reports and final program report will be prepared and made public. – accountability in management, operation and the use of funds with sound financial

management including the use of international financial standard.

• Interim trustee: UNDP, while national trustee is building its capacity to serve as the trustee to the ICCTF

• Two phases:

– Expenditure fund (initial phase). • invest its resources in activities that require investment but do not generate direct

financial revenues • Sources from grants made by bilateral and multilateral development partners.

– Revolving fund (later stage) to ensure sustainability • Invest in revenue-generating activities. • Sources from domestic funds, international loans, global capital markets, etc.

ICCTF - Vrilly Rondonuwu

Bilateral Multilateral

CDM, REDD, PRIVATE, CARBON MARKET, PUBLIC PRIVATE PARTNERSHIP

MECHANISMS

Loan Grant

G-to-G

Trustee Management

GOI host TA & financial & management support

ICCTF

ICCTF and international financing schemes

FINANCING

Bilateral Multilateral

O t h e r s UNFCCC, international trust funds: GEF, Adaptation fund, CIF Private Sector, carbon fees

NATIONAL BUDGET

Innovation Fund

Transformation Fund

For more information: Website of ICCTF

www.icctf.org

THANK YOU

http://www.menlh.go.id vrilly@gmail.com

ICCTF - Vrilly Rondonuwu