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The Landscape of Public Climate Finance in Indonesia: Annexes

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The Landscape of Public Climate Finance in Indonesia: Annexes The Landscape of Public Climate Finance in Indonesia: Annexes July 2014 An Indonesian Ministry of Finance & CPI Report July 2014 The Landscape of Public Climate Finance in Indonesia Table of Contents Annex A: Uses of Public Climate Finance in Indonesia in 2011 3 Annex B: Definition of Climate Finance 4 Annex C: MFF/CPI Budget Line Comparison 9 Annex D: List of Laws, Policies, and Regulations of Relevance for the Regulation of Climate Finance in Indonesia 14 Annex E: Indonesian Climate-relevant Policy Incentives in 2011 15 Annex F: Local Government Climate Finance: Supplementary Analysis 16 Annex G: Summary of Literature Review of State-owned Enterprises’ Climate-related Activities 19 Annex H: List of meetings/ data providers 21 An Indonesian Ministry of Finance & CPI Report 2 July 2014 The Landscape of Public Climate Finance in Indonesia 3 Table 2: Use of public climate finance in Indonesia in 2011 (billion IDR/ million USD) FROM DOMESTIC SOURCES VIA STATE FROM INTERNATIONAL SOURCES VIA STATE FROM INTERNATIONAL SOURCES USES BUDGET EXPENDITURE BUDGET EXPENDITURE (IDR BILLION) (USD MILLION) (IDR BILLION) (USD MILLION) (IDR BILLION) (USD MILLION) Identified Potentially Identified Potentially Identified Potentially Identified Potentially Identified Potentially Identified Potentially as provide as provide as cli- provide as provide as provide as provide climate- climate climate- climate mate-spe- climate climate- climate climate- climate climate- climate specific relevant specific relevant cific relevant specific relevant specific relevant specific relevant outcomes outcomes outcomes outcomes outcomes outcomes DIRECT ACTION Mitigation 1,471 22 167 2 254 29 - 1,280 145 provide climate –relevant outcomes. In addition to outcomes. –relevant climate provide the table also depicts the finance, domestic climate channeled through finance climate of international share budget. and outside of the state budget the state Adaptation 9 8,007 1 909 208 385 24 44 166 19 INDIRECT ACTIVITIES Policy 3,117 897 354 102 0 7 0 1 108 12 develop- ment Capacity 241 291 27 33 12 4 1 0 108 12 develop- ment MRV/ 285 75 32 9 10 1 23 3 Inventory/ Databases Uses of Public Climate Finance in Indonesia in 2011 in Indonesia in Finance Climate Public of Uses R&D 402 303 46 34 0 0 115 13 Other 8 1 5 1 - 573 65 GRAND 5,526 9,603 627 1.09 479 405 54 46 2,372 269 TOTAL Source: Study team analysis of budget data and international development partner survey Note: Flows are expressed in IDR billions and are rounded to produce whole numbers, and as such may not add up. The range for international climate finance results from using state budget data to estimate the full scale of international climate finance channeled through, while answers from the international development partner survey were clear. An Indonesian Ministry of Finance & CPI Report scale of activities that we could clearly identify as could scale of activities that we and those activities that potentially climate-specific Table 2 provides an overview of the uses of state budget budget of the uses of state an overview 2 provides Table both the It shows in 2011. finance as climate transfers Annex A.Annex July 2014 The Landscape of Public Climate Finance in Indonesia Annex B. Definition of Climate Finance Table 3: Definition of sector uses of climate finance SECTOR DIRECT: MITIGATION DIRECT: ADAPTATION INDIRECT ACTIVITIES Agriculture RAN-GRK core activities: Improving RAN-GRK core activities: use of (agricul- RAN-GRK supporting activities: R&D on and livestock food security and enhancing agricultural tural farming) technology that helps to water management systems in irrigation management products with low GHG emissions e.g. protect crops from infestation by pests/ areas, R&D on GHG emission reduction optimize land and water resources such climate change effects methods in reservoirs, R&D on low as managing crops without burning, use RAN-GRK supporting activities: water emission technology which produces high of (agricultural farming) technology that conservation area management/ yields/ MRV methodology emits less GHG emissions/ supports rehabilitation [included as mitigation in absorption of CO2 , organic fertilizers RAN-GRK] and bio-pesticides, enhancement of Additional CPI examples: Climate- productivity and reduction of emissions resilient crops, conservation agriculture, from agriculture on peat lands, productive climate field school, enhance resilience use of degraded/ non-forest/ abandoned and response to extreme climate (e.g. lands for development of plantation (oil technical and financial support to secure palm, rubber, cacao)/ horticulture/ animal rice production, technical research, seeds raising, maintenance/ improvement/ resistant to drought), active participation enhancement of the irrigation system/ of the community populations in e.g. network income generation and management, and Additional CPI examples: restoration of management of risks in extreme events organic soils and degraded lands; CO2/ e.g. Climate Resilient Villages Program, methane/N20 reduction via improved reduce vulnerability of crop storage facil- agricultural practices, crop and grazing ities, crop diversification options so that land management. to strengthen famers’ resilience, adoption of sustainable aquaculture techniques to face changes in fish stocks; etc. An Indonesian Ministry of Finance & CPI Report 4 July 2014 The Landscape of Public Climate Finance in Indonesia SECTOR DIRECT: MITIGATION DIRECT: ADAPTATION INDIRECT ACTIVITIES Forestry and RAN-GRK core activities: secure forest CPI examples: Species better adapted RAN-GRK core activities: licences for eco- land use areas from illegal logging, suppress to new climate conditions, management system restoration on logged over areas, deforestation/ degradation rate, of slopes and basins to avoid/reduce the law enforcement in forest areas sustainable forest management, Forest impacts caused by soil erosion; restore RAN-GRK supporting activities: Data col- Management Units (Production Forest), and maintain environmental services lection on (geo)hydrology of peat lands, improving non-timber product services, (including watershed functions, establish- marsh land conservation/ cultivation, development of environmental services, ing protected areas etc.) R&D on peat land water systems and on inauguration of forest areas/ forest forest climate change policy, National area outer boundaries, rehabilitation/ Strategic Zones (NSZ) and national/ reclamation of forests in watershed areas, island/ provincial region/ river Spatial support for Community/ Social Forestry, Planning (SP), Strategic Environment forest fire control, , forest conservation, Assessment (SEA), Forest Resources (FR) ecosystem protection, protected areas, inventory and monitoring, peat ecosystem planting to increase GHGs absorption, management including inventory, damage enhancement of plantation forest criteria formulation and planning, formu- businesses, post-mining land reclamation lation of REDD+ Strategy, establishment through tree planting, optimize land and of REDD+ Nat. Coordination Agency/ water resource without deforestation, REDD+ MRV agency/ REDD+ financing improvement, rehabilitation, operation instrument and maintenance of (marsh) water system e.g. stabilize water level elevation on, swamp/ marsh reclamation network (including peat lands) Additional CPI examples: Reforestation, afforestation, soil carbon, restoration of organic soils and degraded lands. Energy: RAN-GRK core activities: Enhancement RAN-GRK supporting activities: guidance Renewable of new and renewable energy includ- on renewable energy provision, setting energy ing micro and mini hydro, solar, wind, up geothermal groundwater regulations, generation biomass, biogas from agricultural wastes data classification of geothermal reserves, such as manure/ urine of cattle establishment of geothermal Mining Additional CPI examples: Geothermal, Work Areas (MWAs), update of electricity tidal grid emission factors, R&D/ modelling on Manufacturing i.e., the production of sea wave/ tidal potential equipment for renewable generation and R&D activities for such technologies should be excluded. An Indonesian Ministry of Finance & CPI Report 5 July 2014 The Landscape of Public Climate Finance in Indonesia SECTOR DIRECT: MITIGATION DIRECT: ADAPTATION INDIRECT ACTIVITIES Energy: RAN-GRK core activities: Increased RAN-GRK core activities: energy conser- Energy energy saving e.g. energy management vation partnership program with private efficiency systems/ audit especially for energy-in- parties/ communities, strategies/ policies (demand- tense industries, efficient technologies/ for travel demand management (TDM) side) household appliances, energy efficient RAN-GRK supporting activities: guidance and low carbon motorized vehicles on energy conservation provision, EURO Additional CPI examples: Demand- IV standard for new motor vehicles side energy efficiency in buildings and industry (and transport if not model shift) e.g. replacement of machinery, efficient working procedures, efficient building design, vehicles retrofit, hybrid/ electric vehicles, retrofit of transmission lines, distribution systems or substations to reduce energy use or losses Energy: Fuel Switch from coal or oil to gas in energy switch and production; efficient coal and gas power efficiency plants; fossil-fuel based co-generation improvement technologies that generate electricity in to fossil fuel addition to providing cooling/heating fired power excluded plants Energy trans- CPI category:
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