Climate finance training in Indonesia
A series of capacity-building programs on climate finance for adaptation and mitigation actions has been successfully implemented, empowering approximately 70 residents from vulnerable villages in four administrative districts of Indonesia.
Climate change continues to disrupt various aspects of life in Indonesia, particularly in vulnerable regions facing rising sea levels, coastal flooding, extreme weather events, and shifting agricultural patterns. To address these challenges, it is crucial to empower local communities with the knowledge and tools necessary to proactively adapt and build resilience to climate- related risks.
Initiated by the International Climate Initiative funded GIZ project Green Economy Transformation 4.0. and its partners from GIZ Indonesia prject Climate and Biodiversity and the Ministry of Environment in Indonesia, the “Capacity Building on Climate Finance for Adaptation and Mitigation Actions” took place from October to December 2024 in five villages highly vulnerable to climate impacts,namely in Boyolali, Pekalongan Regency and Pekalongan City. In collaboration with Mercy Corps Indonesia, this programme was designed to equip participants with the knowledge and skills needed to mobilise and effectively use climate finance for resilience-building activities that protect lives, livelihoods, and ecosystems.
Empowering Sruni Village through carbon market readiness
The programme began in Sruni Village, Boyolali Regency, a community known for its dairy farming. Sruni Village has demonstrated its potential for sustainable development by using dairy farm waste to produce biogas for household use. The programme, which involved trainers from Biru Karbon Nusantara and LPTP (Institute for Advancement of Rural Technology), aims to introduce Sruni Village to the process of registering its biogas production within the Indonesia Carbon Exchange. This initiative aims to equip the community and government of Sruni Village with the necessary knowledge to participate in Indonesia’s carbon trading system, thereby contributing to methane emissions reduction. The conversion of these emission reductions into tradable carbon credits would then generate economic benefits for the community.
Addressing regional vulnerabilities and expanding financial access
In Pekalongan Regency and City, capacity building sessions were conducted in four villages: Jolotigo and Simego in the upstream area of a major watershed, and Krapyak and Jeruksari in the downstream area. Each region faces different challenges and opportunities. Jolotigo and Simego have significant potential for agricultural production but are threatened by shifting agricultural rain patterns and extreme weather events. In contrast, Krapyak and Jeruksari thrive on marine and fisheries sector but are increasingly vulnerable to coastal flooding, tidal inundation, and sea level rise.
These threats pose a risk of economic disruption. To address these issues, this programme facilitated capacity building initiatives for communities to analyse their vulnerabilities and opportunities in the context of climate change, help them to develop action plans, and introduce them to potential sources of funding or funding mechanisms yet to developed, such as payments for ecosystem services and CSR by local businesses.
The programme’s outcomes were well received by local and regional governments, who expressed their satisfaction with the capacity building efforts and extended their support to the action plans developed by the participants.
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