«Status of Climate Finance in Indonesia Country Assessment Report Dennis Tänzler (adelphi) Martha Maulidia (GIZ) August 2013 Funded by: Climate and ...»
First example is the public-private dialogue forum at the local level taken up by the KALTIM Carbon Alliance (KCA). The Indonesian province of East Kalimantan faces the task of integrating climate change mitigation into the system of local development planning and combining national climate change targets and green growth strategies. If successful, green growth in the province will decouple economic development from increase in GHG emissions.KCA is a discussion and work forum focussing on three sectors: palm oil plantations, natural forest management and open-pit mining. Its objective is to unlock the private sector’s potential to contribute to green growth in the province of East Kalimantan.
Under the KCA the provincial government of East Kalimantan and the 'environmental champions' from the private sector would work together as part of a working group for green growth under the provincialgovernment’s climate change council, the DDPI.
KCA activities are divided into three phases. A first phase focuses on discussions between the private sector companies and documents the contributions of 'environmental champions' to green growth recognized as such by the government. In a second phase companies would commit to improving their management practices and receive training sponsored and potentially incentives to support advances. In a third phase experiences will be transformed P a g e | 43 Strengthening Public and Private Climate Finance in Indonesia Final Report, June 2013 into government policies and potentially scaled-up to the national level. Elements of the KCA
• The government takes a proactive stance to recognizing the private sector’s contribution to climate change mitigation and passes regulations to create incentives.
• With capacity building support and using government incentives the private sector works towards improving the business practices to enhance productivity and reduce carbon emissions at the same time.
• International donors and agencies, including GIZ, support the KCA, providing this capacity building support. Some international donors may even consider cofunding a government support/incentive programme for the KCA and the participating private sector firms.
• For all of these activities, the companies and the government join together under the KCA where they can engage in a constructive dialogue that provides a semiindependent forum to track progress and contributions to green growth and emission reductions.
The second example in bridging investor groups and the public sector on a regional level is the Alliance for Public Private Climate Finance Asia-Pacific that was launched in November 2012 by GIZ and the Asia Investor Group on Climate Change (AIGCC) in Jakarta to facilitate private investment in climate action. The initiative aims to combine the considerable climate finance work carried out globally with a detailed understanding of the policy and investment environment in the Asia-Pacific region. This is expected to help support the development of effective public private financing mechanisms that can most efficiently facilitate investments in these regional markets. A regional platform to host stakeholder dialogues at many levels and regular consultations is planned, along with supporting capacity building of financial institutions and policy makers in developing countries and emerging markets and to strengthen communication between public and private sectors.. The intention is to have public and private sector actors actively exchange ideas on climate finance development and come up with concrete concepts on the design of the climate finance architecture in the region and within the different countries.
8. Recommendations - Next steps in improving improve climate finance readiness As we see from the analyses in this report, there is good climate finance momentum underway in Indonesia, but further effort is still needed to improve national readiness for receiving and using climate finance. The following recommendations seek to build upon the mechanism and results achieved already while addressing some of the remaining gaps and
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