8

Agenda13h10 -13h25

(UTC)

Introduction and overview of domestic mapping initiatives and tools

Adeline Dontenville, Land-use finance Lead, European Forest Institute

Chavi Meattle, Senior Analyst, Climate Policy Initiative

Padraig Oliver, Programme Officer, UNFCCC

13:25-14:10 Session 1: Using national climate finance tracking to drive increased policy

ambition, improved climate finance reporting and mobilization of resources

Moderator: Tom Beloe, SDG Finance Advisor, UNDP

14:10-14:55 Session 2: How national climate finance tracking can be leveraged to align

public and private actors’ investments with the Paris Agreement?

Moderator: Amal-Lee Amin, Director, Climate Change, CDC Group

14:55-15:00 Closing remarks

Barbara Buchner, Executive Director, Climate Policy Initiative

Introduction

Adeline Dontenville,

Land-use finance

Coordinator,

European Forest

Institute (EFI)

Chavi Meattle,

Senior Analyst,

Climate Policy

Initiative (CPI)

Padraig Oliver,

Programme Officer,

Climate Finance,

UNFCCC

Update of climate

finance mapping

and tracking efforts

5

Climate Expenditure and Institutional Review (CPEIR)

Bangladesh, Benin, Bhutan, Cambodia, Chile , China (Hebei),

Colombia, Ecuador, El Salvador, Ethiopia, Fiji, Ghana, Honduras,

Indonesia, Kenya, Kiribati, Marshall Island, Morocco, Mozambique,

Nauru, Nepal, Nicaragua, Pakistan, Philippines, Samoa, Tanzania,

Thailand, Tonga, Uganda, Vanuatu, Vietnam

Climate Finance Mapping efforts

Climate Budget Tagging

Bangladesh, Cambodia,

Indonesia, Nepal,

Philippines, Pakistan,

South Africa, Thailand

Landscapes of

Climate Finance

Brazil, Cambodia,

Colombia, Côte d’Ivoire,

Czech Rep., DRC,

Ecuador, France,

Germany, India,

Indonesia, Kenya,

Latvia, Morocco, Papua

New Guinea, Poland,

South Africa, Vietnam

Investment and Financial Flows (IF&F),

Critical Investment analysis

Bangladesh, Colombia, Costa Rica,

Dominican Republic, El Salvador, Ecuador,

Gambia, Honduras, Liberia, Morocco,

Namibia, Niger, Nigeria, Paraguay, Peru,

Togo, Turkmenistan, Uruguay, Uzbekistan

Private Sector Climate

Expenditure Review (PCEIR)

Vietnam, Thailand, Ecuador, Chile

6

Objectives and Coverage of Tracking Initiatives

Landscapes CPEIRs PCEIRs CBTs IF&Fs

Objective

Temporal

Coverage

Type of

Finance

Ex-post,

Ex-ante

Ex-post Ex-post,

forecasting

Present, Ex-post Ex-ante,

forecasting

Public and/or

Private

Public Private Public Public and private

Capture

dimensions of

climate finance

flows (sources,

intermediaries,

uses, instruments

etc.)

Policy analysis,

Institutional

review,

expenditure review

Review of private

sector

investments in

selected sector,

estimate

investment needs

Mainstreaming

climate change in

public financial management

Costing of NDC

implementation

based on climate

change impact by

sector

7

Guidance Note on Tracking Domestic Climate Finance

• Note provides a step-by-step guidance on tracking

climate finance at the national level, sharing various

approaches, methodological frameworks, and best

practices.

• Coming soon!

• Kenya Landscape of Climate Finance (28th Jan)

• South African Climate Finance Landscape 2020 (25th Jan)

• Links to relevant material

• CPI - Guidelines for Building a National Landscape of

Climate Finance

• EFI and CPI - Land-use Finance Tool

• UNDP - Climate Public Expenditure and Investment

Review

• UNDP - Private Sector Climate Expenditure and

Institutional Review

• UNDP - Climate Budget Tagging

• UNDP - Investment and Financial Flows

Domestic climate finance tracking in the context of the Global Stocktake 2020 and

the enhanced transparency framework

Padraig Oliver,

Programme Officer, Climate Finance,

UNFCCC

Climate finance reporting under Enhanced Transparency Framework of the Paris Agreement

BTRs

Annex II Parties provide information on financial support provided:• Bilateral, regional and

other channels• Multilateral channels

2020 2022 2024 2026

Enhanced reporting under the Convention Enhanced Transparency Framework under Paris Agreement

Biennial Report

BR5

Biennial Transparency

Report

Biennial Update Report

Non-Annex I Parties may submit BURs at any time containing information on • finance received

BTRs

Developing country Parties should provide information on• financial support needed • finance received

Developed country Parties shall and other Parties that provide support should provide information on financial support through:• Bilateral, regional, and other channels• Multilateral channels• Private finance mobilised by public

interventions

Biennial Transparency

Report

Session 1: Using national climate finance tracking to drive increased policy ambition, improved climate finance reporting and mobilization of resources

Peter Odhengo

Senior Policy Advisor

on Climate Finance

Kenyan Treasury

Sarah McPhail

Director, Financial Sector

Policy

National Treasury of

South Africa

Diego Teca

Undersecretary for

Climate Change

Ministry of

Environment and

Water, Ecuador

Noor Syaifudin

Senior Policy

Analyst

Fiscal Policy

Agency (BKF) of

Indonesia

Moderator:

Tom Beloe

SDG Finance

Advisor, UNDP

MINISTERIO DE AMBIENTE Y AGUA

DOMESTIC CLIMATE

FINANCE MAPPING AND

PLANNING – CHALLENGES

AND OPPORTUNITIES

Ecuador´s progress on domestic

tracking initiatives

January 2021

MINISTERIO DE AMBIENTE Y AGUA

NDC

PLANACCNATIONAL MITIGATION PLAN

IMPLEMENTATION PLAN

LULUCF

MRV SYSTEM

(NATIONAL REGISTRY ON

CLIMATE CHANGE)

NATIONAL STRATEGY ON CLIMATE CHANGE

FINANCETECHNOLOGY

CAPACITIES

MEANS OF IMPLEMENTATION

GENDER APPROACH

WATER HERITAGE

NATURAL HERITAGEHEALTH

HUMAN SETTLEMENTS

STRATEGIC AND

PRODUCTIVE SECTORS

FOOD SOVEREIGNTY,

AGRICULTURE, LIVESTOCK,

AQUACULTURE AND FISHING

ADAPTATION MITIGATION

INDUSTRIAL PROCESSES

WASTE

ENERGY

AGRICULTURE

MEANS OF IMPLEMENTATION ADAPTATION MITIGATION

4

51

3

2

To identify gaps and financing opportunities.

To collect and present available information.

To align climate change priorities whit financing opportunities.

To get the basis for developing a system for MRV system.

To facilitate access and understanding.

It aims to optimize and accelerate the mobilization of resources.

OBJETIVES RELATED TO CLIMATE FINANCING IN ECUADOR

MINISTERIO DE AMBIENTE Y AGUA

• Climate finance institutional frameworks strengthened with methodological tools

• Mainstreaming of gender approach

• Disaggregation and costing of selected initiatives in Energy sector (NDC mitigations)

CLIMATE FINANCE METHODOLOGIESEcuador

CPEIR

IFF

PCEIR

PAST BASE LINE

FUTURE FORECAST

PRESENT REPORTING

Tagging system and monitoring platform for

climate investments

Public &Private

Costing of NDC implementation for

selected sectors

Opportunities and limitations to incorporate

climate change in the country’s budget and

planning process

Data to support country´s climate finance

Project with Ministry of Environment 2020 –2021 includes:

Climate Budget Tagging / monitoring

Gender mainstreaming

Session 2: How national climate finance tracking can be leveraged to align public and private actors’ investments with the Paris Agreement?

Nathan Fabian

Chairperson,

European Platform on

Sustainable Finance

Chief Responsible

Investment Officer, PRI

Chris Dodwell

Head of Policy and

Advocacy

Impax Asset

Management

Clifford Polycarp

Deputy Director,

Country

Programming

GCF

Francisco

Dall'Orso

Climate Change

Professional

Ministry of Energy,

Chile

Moderator:

Amal-Lee Amin

Director, Climate

Change,

CDC Group

Closing remarks

Barbara Buchner

Global Managing Director

Climate Policy Initiative

Thank you for participation!Funders

Ministry of Finance

The Republic of Indonesia

INDONESIA

Climate Budget Tagging

Center for Climate Finance and Multilateral Policy

Fiscal Policy Agency

Ministry of Finance

January 21st, 2020

Ministry of Finance

The Republic of Indonesia

Outline

01 Background

02 Indonesia NDC and Financing Issue

03 Climate Budget Tagging

04 Subnational Climate Budget Tagging

05 Development Plan

Ministry of Finance

The Republic of Indonesia

Background

1992 -

UNFCCC

1997 –

Kyoto Protocol

Kyoto, Japan

2009 –

Copenhagen Accord

Copenhagen, Denmark

2007 –

Bali Road Map

Bali, Indonesia

2016 –

Paris Agreement

Paris, France

2018 –

Katowice Climate Package

Katowice, Poland

National Action Plan on

GHG Emission Reduction

(RAN-GRK), 2011

National Action

Plan on Climate

Adaptation (RAN-

API), 2014

Indonesia Nationally

Determined Contribution

(NDC), 2016

National Mid-Term Development Plan 2020-2024

National Priority No.6: Develop environment, improve

disaster and climate resilience.

Priority Program: Low Carbon Development, Environment,

Disaster, and Climate Resilence

National Action Plan on Sustainable

Development Goals, 2017

Climate Change Action Based on SDGs 13

VULNERABILITY

COMMITMENT

1960 2000

25.2

26.6

26

1980

(YEAR)

(An

nu

al M

ea

n T

em

pe

ratu

re)

(°C

)

Indonesia is vulnerable to the adverse impacts of climate change. The average temperature across the

entire region of Indonesia for the past 100 years shows an increasing trend. It is believed to increase the risk

for hydro-meteorological disasters, which make up more than 80% of the disaster occurrence.

Therefore, Indonesia has strong commitment to tackle climate change. It is

seen through its national regulations and policies active participation on

global actions.

Mitigation target:

29% (conditional)

Up to

41% (conditional)

Ministry of Finance

The Republic of Indonesia

Indonesia NDCBy 2030, Indonesia is

determined to reduce its

Green House Gasses

Emission by:

Unconditional

emission reduction against BAU scenario

conditional

subject to international support

2 9 %

up to

41 %

314497 11 9

3.25650 398 26 4

2.75

(MTonCO2e)

2 9 %IPPUFOREST ENERGY & TRANSPORT WASTE AGRICULTURE

PROGRESSBaU Emission Level in 2030 2.869 Mton CO2eq

Actual Emission Level (Include FOLU) in 2017 1.154 Mton CO2eq

Actual Emission Level (Exclude FOLU) in 2017 861 Mton CO2eq

Emission Reduction in 2017 706 Mton CO2eq

Emission Reduction from BaU (emission Level in 2030) 24,6%

FINANCING ISSUEBased on the 2018 Second Biennial Update Report (BUR),

Indonesia submitted an estimated financing needs to achieve

the emission reduction target in 2030 reaching USD247,2 billion

or around Rp3.461 trillion (Rp266,2 trillion/year).

Climate Financing Needs To

Achieve NDC Target

(in Billion USD)

Energy &

Transportation,

236.2

FOLU, 5.6

Industrial Processes & Product Use,2.9

Waste, 2.17

Agriculture,

0.38

Ministry of Finance

The Republic of Indonesia

Climate Budget Tagging (CBT)Initiatives and Development

Implementation of

Climate Mitigation

Budget Tagging in

ADIK system

2016

Study of Mitigation

Fiscal Framework

(MFF) by FPA

2012

Study of Low

Emission Budget

Tagging and Scoring

System (LESS) by

FPA

2013

• Collaboration between FPA &

UNDP/UNEP in the Sustainable

Development Finance Program.

• Study of Green Planning &

Budgeting

2014

FPA Published Climate

Change Mitigation

Budget Report 2016-

2017

2017201820192020

• FPA launch the Public Climate

Finance Report FY 2016-2018

• Development of Regional

Climate Budget Tagging

• Implementation of

Climate Adaptation

Budget Tagging

• 1st Global Green Sukuk

Issuance based on CBT

data

2nd Global Green Sukuk

Issuance and Green

Sukuk Retail Issuance

based on climate budget

tagging data

Since 2012, the Ministry of Finance has carried out several policy studies in terms of public funding for

climate change as the basis for climate finance policy. One of the study suggested the need of climate

budget tagging to be implemented.

According to the study and as the effort to increase transparency of public funding for climate change in

Indonesia, in 2016 the Government of Indonesia c.q. The Ministry of Finance initiated the climate change

budgeting (Climate Budget Tagging) for state budget.

The implementation of climate budget tagging (a process of marking, tracking and identify climate change

outputs and budgets in planning and budgeting documents) required collaboration between the Ministry of

Finance, Ministry of Planning, and the Ministry of Environment and Forestry by involving a number of related

ministries / institutions, through the KRISNA system (Planning and Budgeting System Collaboration).

Process

Ministry of Finance

The Republic of Indonesia

Since 2016, climate budget was allocated around Rp95,15 trillion per year or 4,1% to State Budget per year. Accumulatively, Government of Indonesia already spent the climate budget around Rp347,01 trillion since 2016 until 2019.In 2016 and 2017, government only spent the climate budget tagging for mitigation actions. In 2018, the climate budget tagging for adaptation actions just been implemented.

Climate Budget Tagging Result

In 2020, even in the midst of pandemic, government continues to encourage climate spending in state budget. The allocation of climate budget around Rp77,7 trillion. Around 57% was allocated for mitigation actions, and the rest for adaptation actions.

In 2020, climate budget allocation was contracted due to refocusing and budget reallocation policy for COVID-19 handling program.

72.4

95.6

132.5

97.7

77.7

52.4

85.0

126.0

83.5

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

2016 2017 2018 2019 2020

Rp

Tri

llio

n

Climate Budget Allocation Climate Budget Realization

Mitigation Spending

57%

Adaptation Spending

43%

Climate Budget Allocation and Realization (Rp Trillion) Climate Budget Allocation in 2020

Ministry of Finance

The Republic of Indonesia

Based on mitigation sectors, government mitigation spending was dominated for energy and transportation. Government already spent around Rp111,8 trillion (83,5%) to support the development of renewable energy infrastructures, energy efficiency programs, sustainable transports and infrastructures. Meanwhile, spending for FOLU was Rp4,4 trillion (3,3%), Waste around Rp6,9 trillion (5,1%), Agriculture was Rp10,5 trillion (7,8%), and IPPU was Rp0,3 trillion (0,2%).

If we refer to the estimation of climate financing needs based on Second Biennial Update Report (2018), the average of climate financing needs for Indonesia worth Rp266,6 trillion per year. On average, for the past 5 years, the government mitigation spending was contributed for 22,6% per year to national climate financing needs to achieve NDC target.

Agriculture

Forestry and Land Use (FOLU)

Energy and Transportation

IPPU

Waste

0

10

20

30

40

50

60

70

80

90

100

Rp0.00 Rp20.00 Rp40.00 Rp60.00 Rp80.00 Rp100.00 Rp120.00

Mit

igat

ion

Ou

tpu

ts

Climate Budget Realization (Rp Trillion)

Government Mitigation Spending by SectorsUsing Climate Budget Realization (2016-2019)

19.7%

31.9%26.0%

18.8% 16.7%

80.3%

68.1%74.0%

81.2% 83.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018 2019 2020

Mitigation Spending on State Budget Financing Gap

Government Mitigation Spending Contribution in National Climate FinanceBased on Financing Needs in Second Biennial Update Report

Ministry of Finance

The Republic of Indonesia

CBT and Green Sukuk

Green Sukuk is an instrument to finance

climate change actions and also achieve

the SDGs target.

Climate Budget Tagging data is used

as reference / underlying asset for

the issuance of Green Sukuk.

Projected Emission

Reduction from Global

Green Sukuk Issuance5,7 millions ton CO2e

First Issuance 2018

3,2 millions ton CO2e

Second Issuance 2019

8% 6%

17%

62%

7%5%

27%

11%

49%

9%

Renewable

Energy

Energy Efficiency Improving

Climate

Resilience for

Vulnerable Areas

Sustainable

Transportation

Waste

Management and

Waste to Energy

2018 2019

Underlying Assets

Underlying asset of 2020 Issuance

1st Global Green Sukuk

USD1,25 billion

2nd Global Green Sukuk

USD750 million

1st Green Sukuk Retail (ST-006)

Rp1,46 trilion

3rd Global Green Sukuk

USD750 million

March 2018

Feb 2019

Nov 2019

June 2020

5 years tenor

2,3% Coupon

• Lowest coupon rate for 5 years tenor

• 7,37x Oversubscribed

Resilience to Climate

Change for Highly Vulnerable

Areas and Sectors/Disaster

Risk Reduction

Waste to Energy and

Waste Management

Sustainable Transport

Ministry of Finance

The Republic of Indonesia

Subnational CBT

MAINSTREAMING CLIMATE CHANGE AT A REGIONAL LEVEL

REGIONAL PLANNING AND BUDGETING

(RKA OPD and APBD)

REGIONAL GHG INVENTORY AND REGIONAL CLIMATE

CHANGE BUDGET PROPORTION

ACHIEVEMENT OF NDC, RAD-GRK, RAN-API AND PPRKD TARGET

(Regional Low Carbon Development Program)

FRAMEWORKTo date, there have been 34 provinces in Indonesia thatalready had RAD-GRK (Subnational Mitigation Plan).

As CBT is also important for planning and budgeting inthe regions, central government encourages subnationalgovernment to implement CBT.

It is conducted by through literacy program forsubnational government which objectives are to increaseawareness of subnational governance on climate actions,to disseminate government climate funding policies andto develop capacity on CBT.

Fiscal Policy Agency (BKF-MoF) has compiled aguidebook consisting of CBT and start the program for 11Sub National Government as pilots in 2020.

Ministry of Finance

The Republic of Indonesia

Development Plan

Climate Budget

Tagging

Continue Literacy Program for Subnational Government

Support for the development of sustainable finance

Integration with emission reduction data

Ministry of Finance

The Republic of Indonesia

INDONESIA

Thankyou

Center for Climate Finance and Multilateral Policy

Fiscal Policy Agency

Ministry of Finance

January 21st, 2020