Identification of Financing Options for Adaptation Measures

This GIZ 2011-2012 consulting assignment identified the financing/budgeting instruments with potential to support the climate change adaptation measures at the regional level in Indonesia. The work will consist of the identification of the appropriate financing options based on the existing instruments such as the regional budget (APBD), Specific Allocation Fund (DAK), Private Participation through Corporate Social Responsibility and Public-Private Partnership,   as well as recommendation of other new financing options currently under development in Indonesia such as Indonesian Climate Change Trust Fund. 

Castlerock tasks included:

  • Integrating the work with the study on Climate Risk and Adaptation Assessment: Review on  the results of  the study on Climate Risk and Adaptation Assessment (Kajian Risiko dan Adaptasi Perubahan Iklim, KRAPI)   and discussion with KRAPI team are conducted to identify  the prioritized adaptation actions in targeted regions: Tarakan, South Sumatera and Malang
  • Evaluating the city government/municipal/provincial t fiscal policy and revenue ,including review of  the existing budget capacity, and identify the fiscal capacity in supporting the national emission reduction target.
  • The city fiscal instruments policy/regulatory framework (UU, PP, etc) was also  reviewed together with the ability of city to raise additional financing for supporting the climate change mitigation actions is analysed. 
  • Analyses readily available programmes and initiatives at national level which could be utilized for financing the mitigation options.
  • Identification of the appropriate existing instruments and the possible budget to suit the particular climate change mitigation/adaptation actions and   identifies other financing instrument options possible which may be combined with the existing instruments.

The type of existing financial instruments covered in the analysis are  the National Allocated Budget (APBN), City fiscal instruments, Specific Fund Allocation (DAK),  and private sector financing such as possible funding from CSR, bank and loans.