Support to the Indonesia Climate Change Trust Fund (ICCTF): Enhancing governance of climate finance in Indonesia
As of: July 2020
Objective and activities
The project has strengthened the capacity of the Indonesia Climate Change Trust Fund (ICCTF) to manage climate finance resources, thereby helping to provide both the public and private sectors with better access to climate finance. The aim of this work was also to ensure that the standards of the international community are met, which allow direct contributions to be made to the ICCTF. The ICCTF is tasked with pooling international donor resources and private resources and managing their use within the scope of the Indonesian climate programmes and strategies. Local governments are able to access funding via the ICCTF in order to finance their mitigation and adaptation activities.
State of implementation/results
- The project supported the ICCTF in the development and application of Standard Operating Procedures (SOPs). The SOPs address processes such as project selection, allocation of funds, accounting, information and technology as well as monitoring and evaluation.
- The Indonesian Financial Market Authority (OJK) carried out a study on the inhibiting factors for national banks in the application of project financing models for sustainable infrastructure projects in Indonesia. The study contains recommendations for improving banking regulation and practice to facilitate project financing. The results of the study were used as training material for credit analysis officers.
- The project developed financing models for projects for energy efficiency (industrial cooling systems) and renewable energies (solar roof systems).
- The project supported the Indonesian Ministry of Finance in reviewing its fiscal policy for renewable energy (including taxes, expenditures and financing). In this context, a study was carried out to assess cost structures for renewable energy production, which served as a basis for identifying appropriate tax and financing instruments to support the development of renewable energy.