establishment of indonesia climate change trust fund (icctf) and
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Establishment of Indonesia Climate Change Trust Fund (ICCTF) and Formulation of Climate Change Program Loan (CCPL)
Tri DewiVirgiyantiDeputy Director for Environmental Pollution and Degradation ControlMinistry of National Development Planning/National Development Planning Agency (BAPPENAS) - Republic of Indonesia
Presented at ADAPT Asia Pacific 1st Annual ForumBangkok, 14th March 2012
DEVELOPING COUNTRY EXPERIENCE IN PREPARING ADAPTATION PROJECTS AND ACCESSING ADAPTATION FUNDS
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ICCTF
The ICCTF is a Trust Fund receiving non-refundable contributions from bilateral and multilateral contributors serving as a channel to attract, mobilize and manage investments and financial resources for climate change mitigation and adaptation programs, projects and activities
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Establishment Process Started in 2007-2008 with a study on Climate Change
Financing possibilities of CC financing Real work started in 2008 with establishment of core
team in Bappenas to prepare concept of ICCTF Prepare options for trust fund scheme, governance,
procedures, mechanism, timeframe, organization, legal basis compare 3 options
Involve core stakeholders: Ministry of Finance, Coordinating Ministry of Economy, Ministry of Environment, National Council of Climate Change
Gain Political support from Minister level Discussed in Donor Coordination Meeting get feedback
from bilateral and multilateral financial institution
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Establishment Process (2) Detailed concept of: procedures mechanism,
Blueprint of ICCTF, Standard Operating Procedures (SOP)
Establishment of Steering Committee (GOI parts), Technical Committee, Secretariat
Commitment from donor (Sweden, Australia and United Kingdom)
Launched in August 2009 at national level, and launched internationally in Copenhagen December 2009.
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Transition …. Option 2 was chosen for ICCTF however with
limited time and capacity, decided to use interim trustee Fund Manager (UNDP) Prep ICCTF
Detailed Monitoring Evaluation System, Audit and Exit Strategy National Trustee 2012
Operationalized in 2010 3 pilot projects land based (agriculture), energy (industry), and resilience (public awareness)
ICCTF has been proposed as NIE for Adaptation Fund
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CCPLis a policy loan to support general budget
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Purpose of CCPL To fill national fiscal gap (by general budget
support) To support climate change policy program with
steady implementation of Policy Matrix (indirect) Policy Matrix includes sectors:◦ Forestry – CO2 absorption; forest management ;
◦ Energy and Industry- renewable energy; energy efficiency;
◦ Water Resource Management and Water Supply and Sanitation;
◦ Agriculture - food security;
◦ Marine, Coastal and Fisheries;
◦ Disaster Management; and
◦ Cross-sectoral issues – spatial plan, early warning systems, fiscal incentives, national communication, climate change integration into development plan.
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Follow up of Joint Statement between President RI dan Prime Minister of Japan on Enhancement of Cooperation on Climate Change, Environment and Energy Issues (20 August 2007)
Follow up of Donor Coordination Meeting on Indonesian Financing Program for Climate Change (Bali, 12 December 2007)
Internal meeting between Ministers (Finance, Coord. Min of Economy, Bappenas, MoE, MoForestry) decided to take CCPL
Formulation Process (1)
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Formulation Process (2)
Bappenas to coordinate formulation of policy actions with Donors (JICA and AFD) and 13 Line Ministries + Ministry of Finance
Phase 1-II of CCPL – Policy Actions for 2007-2009
In 2009 formulate Phase III of CCPL –Policy Actions for 2010
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Policy Matrix for the Climate Change Program Loan Phase 1-2 covering 2007-2009 was agreed in Aug. 2008, and CCPL 2010 (phase-3) started in 2010
Disbursement of loans 1st tranche (2008): USD 300 million (JICA) and USD 200
million (AFD) 2nd tranche (2009): USD 400 million (JICA) and USD 300
million (AFD) 3rd tranche (2010): USD 300 million (JICA) and USD 300
million (AFD) and 200 million (World Bank)
Development of CCPL
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Thank you
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Annex
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Climate Change Financing Scheme
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Options of ICCTF Governance and Scheme
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Option 1 Option 2 Option 3
TF Mechanism Established Proposed Proposed
National Capacity Building Marginal Creation of additional capability on managing fund
Enhancement of existing
Trustee Experienced but limited availability
Open bidding Selected (MoF)
Role of trustee Financial and Program Management Unit
Financial Management Unit
Treasury
Rate for Management Fee Relatively fixed Competitive Free
Audit trustee Internal audit by MI; limited intervention by GOI
Independent auditor External auditor – BPK
DIPA Bappenas and K/L (Project Executing / Implementing Agency)
Bappenas and K/L (Project Executing / Implementing Agency)
Bappenas and K/L (Project Executing / Implementing Agency)
Disbursement mechanism Grant mechanism (according to MI standard)
Grant mechanism (to be proposed and negotiated)
Special Account (Reksus) through KPPN Mechanism
Procurement According to grant agreement
According to grant agreement
GoI regulation
Comparison between Options
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GOI Members
Chairman : Chief Secretary, Bappenas;Co-Chair : 1. Deputy for Natural Resources and
Environment, Bappenas 2. DG Debt Management, MOF3. Head of Secretariat NCCC
Members : Echelon I of MoF, Bappenas, MoE, and Related Ministries
ICCTF Steering CommitteePlenary Members
Selected Development Partner Representatives (DFID, AUSAID, GTZ, UNDP, JICA)
Chairperson : Director of Environment, BappenasMembers : - Echelons-II of MoF, Echelons II of Bappenas,
- Echelons-II of Related Ministries, - Dev. Partner Representatives
Technical Committee (TC)
Executing Agency/Implementing Agency : Ministries / Agencies / Local Government/ NGOs
Multi Donor Fund*
Financing
Approval and Assignment
Fund Channeling
Prep ICCTF Trustee
Project Proposal
Monitoring and Supervision
Notes :
ICCTF Secretariat(Administration Staff & Thematic Working Groups)
PREP-ICCTF Governance Structure
Observers (no vote)
CSO representatives
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Steering Committee
Non-implementing GOI, Donor
Technical Committee
Secretariat(Consultant) for technical, monev, supervisi, financial
Multilateral
Proposal
Bilateral
Donor
Others (CSR, etc)
Indonesia Climate Change Trust Fund:Procedures and Mechanisms
Management Team
Trustee
ApprovalTechnical Review
Information Only
K/L
NGOs, community,
others
Recipient
Fund DisbursementPayment Request
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Coordination Structure of CCPLRPJM
RKP
POLICY MATRIX
STEERING COMMITTEE
Chaired by BappenasCo‐Chairs: Menko Ekonomi, Kesra, MoFMembers: Eschelon 1 of Line Ministries
Meeting 2 times a year
JICA(Japan) and AFD (France)
Technical Committee
Chaired by BappenasMembers: Eschelon 2 of Line Ministries
Meeting 4‐6 times a year
JICA/AFD Team of Experts
s
Members: Eschelon 2 of Line Line Ministries
Policy MonitoringPolicy MonitoringPolicy DialoguePolicy Dialogue
Technical DialogueTechnical Dialogue
Indicators
Technical MonitoringTechnical Monitoring
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Technical Assistance Scheme (CCPL)Program Loan/ General Budget Support
Pillar 1: Mitigation
1.1:LULUCF
1.2:Energy
Pillar 2: Adaptation
2.1:Water Resource
2.2:Water Supply
and Sanitation
Pillar 3: Cross-cutting Issues
2.3:Agriculture
3.1:Understanding the Impact of Climate Change
3.2:Mainstreaming Climate Change
3.4:CDM
3.7:Early Warning System
TA
Project
Projects/TAs addressing climate change
JICA/AFD Ministry of Finance
Line ministry A
Line ministry B
Line ministry C
Line ministry D
Project
TA
TA
Project
TA Project
TA
Possible AssistanceLoan
Technical CooperationGrant
Should be reported toDirector of Environment
BAPPENAS
Donors includingJICA/AFD
3.3; Spatial
Planning
3.5:Co-Benefit
3.6 :Fiscal
Incentives