Mitigation and Adaptation Actions and Financing Frameworks

Transcription

1 NATIONAL DEVELOPMENT PLANNING AGENCY (BAPPENAS) Mitigation and Adaptation Actions and Financing Frameworks Endah Murniningtyas Deputy Minister for Natural Resources and Environment Ministry of National Development Planning (Bappenas) Indonesia Side Event COP-19 Warsaw, 18 November 2013

2 1. Development Planning and Climate Change 2

3 Low Emission Development Economic Development Target + 7% Economic Growth LED Reducing emission, maintaining growth: Low Emission Development (LED) We are devising a policy that will reduce our emissions by 26 percent by 2020 from BAU (Business As Usual). With international support we can reduce emissions by as much as 41 percent - 26/41% Reduction of GHG Climate Change Objective President Susilo Bambang Yudhoyono at the G20 Summit in Pittsburgh,

4 Medium-Term Development Plan National Priority 1 Bureaucratic reform and governance 2 Education 3 Health 4 Poverty Alleviation 5 Food Security 6 Infrastructure 7 Invest and Business Climate 8 Energy 9 Environment and Disaster Management 10 Disadvantage, Border & Post Conflict Area 11 Culture, Creativity and Technology Innovation 12 Politics, Law and Security Economic Social Welfare SUSTAINABLE GROWTH WITH EQUITY 4

5 Response to Climate Change BAPPENAS CLIMATE CHANGE MITIGATION: Mitigate the cause of climate change ADAPTATION: Adapt to climate change Perpres No.61/2011 (Presidential Regulation on RAN-GRK) RAN-API (National Action Plan on Adaptation) Outcome: emission reduction to achieve sustainable development and support global effort preventing global warming Outcome: Development system sustainable and resilient to climate change impact 5

6 Overall Coordination on Mitigation Action National Level Overall coordination, technical assistance & capacity development : Guideline Training Materials Training, TOT Bottom-up: Province develop action plan on local context RAN-GRK (NAP on Mitigation) Top-down: Province develop mitigation action plan Provicial Level (Coordination with District/City) RAD-GRK RAD-GRK RAD-GRK Inter-province Coordination General Methodology and process 6

7 2. Climate Change Financing Frameworks 7

8 REGULATORY FRAMEWORK TO INDUCE PRIVATE SECTOR PARTICIPATION Development Funding Strategy TO ENHANCE QUALITY OF SPENDING REGULATORY FRAMEWORK TO ACCELERATE PUBLIC PRIVATE PARTNERSHIP GOV T EXPENDITURE < 20% of GDP 8

9 Climate Change Funding in State Budget Indicative budget for climate change in National Medium Term Development Plan (RPJMN) is USD billions before issuance of Perpres No. 61/2011 on RAN-GRK, distributed in 16 line ministries/agencies No. Activity RPJMN (USD bill) 1 Adaptation Activities Mitigation Activities Supporting Activities 0.40 No. Activity RKP 2011 (USD bill.) TOTAL Total budget allocation for climate change in Annual Development Plan (RKP) is USD billions, exceeding USD billions budget allocated in RPJMN after issuance of Perpres No. 61/2011 on RAN-GRK, distributed in 16 line ministries/agencies RKP 2012 (USD bill) RKP 2013 (USD bill) RKP 2014 (USD bill) Total (USD bill) 1 Adaptation Activities Mitigation Activities Supporting Activities TOTAL

10 3. External Funding Mechanism 10

11 Public Climate Finance Institution BAPPENAS Funding Source Government s State Budget International Development Cooperation Bilateral Multilateral Responsible Ministry/ Agency Ministry of Finance Ministry of National Development Planning (Bappenas) REDD+ Agency Other Gov t Ministries/ Agencies Climate Finance Institution Indonesia Investment Agency (PIP) Indonesia Climate Change Trust Fund (ICCTF) Millennium Challenge Account Indonesia (MCAI) Fund for REDD+ Indonesia (FREDDI) Development Programs Disbursement Mechanism Focus Area n: - Mitigation - Adaptation Direct Investment: loan and equity participation (PPP and Non-PPP) Marketable securities: Debt Securities/Bond and share Renewable energy: mini hydro power plant and geothermal Grant to Executing Agency (central govt.) and Implementing Agency (central & local govt., academia, CSO, private) 1. Land Based Mitigation 2. Energy 3. Resilience & Adaptation Grant to community; Loan to private sector. 1. Participatory Land Use Planning; 2. Technical and Oversight Assistance 3. Financial Facility 4. Green Knowledge Grant, loan, equity investment, performance base. Implementation of REDD+ National Strategy Grant, research, technical assistance 1.Mitigation 2.Adaptation 11

12 Indonesia Climate Change Trust Fund (ICCTF) Investment Windows 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 2. Implementing GHG emissions mitigation and adaptation initiatives Land Based Mitigation Energy What makes ICCTF Unique 1. Strategic Role Implementation of RAN & RAD-GRK Support to implementation of RAN-API NAMAs support facility Resilience and Adaptation 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 direct access (AF, GCF) 12

13 ICCTF Projects BAPPENAS Sustainable Peatland Management Community Forest & Energy Estate 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 Energy Conservation 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 Public Awareness & Education Adaptation in Health Sector 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 13

14 Implementation Financing BAPPENAS ICCTF s Concept for further Financial Support: Eq. Wood to Energy (WOTE) NAMA Facility Unilateral NAMA finance MoFinance APBN/D DAK SOE (eq: loans) BAPPENAS RAN-GRK Secretariat Supported NAMA proposal WOTE NAMA facility ICCTF Supported NAMA finance Option 2 Grants Option 1 Bilateral (e.g. GER via KfW) Trilateral (e.g. GER/UK NAMA facility) Multilateral (e.g. ADB, WB) GCF Ministry of Forestry Province XYZ Communities/CSO A-Z Prov A Prov B WOTE proposals C A Prov C Prov Z Privates D B 14

15 Millennium Challenge Account Indonesia (MCAI) BAPPENAS Establishment : 19 November 2011 Funding: Millenium Challeng Corporation (MCC) Goal: Compact goal is to reduce poverty in Indonesia through economic growth in Indonesia Purpose: MCAI will act as the Government s primary agent to implement the Compact and perform the Government s right and obligation to oversee, manage and implement the Compact. Indonesia Compact USD 600 million Projects: 1. Green Prosperity 2. Community Health and Nutrition Project to Reduce Stunting 3. Procurement Modernization Green Prosperity Objective: i. increase productivity and reduce reliance on fossil fuels by expanding renewable energy; and ii. increase productivity and reduce landbased greenhouse gas emissions by improving land use practices and management of natural resources 15

16 MCAI s Proposed Disbursement Mechanism 16

17 NATIONAL DEVELOPMENT PLANNING AGENCY (BAPPENAS)