Climate Change Mitigation Board chairman Sarwono Kusumaatmaja.(Antara//ho/Dedi)

The Indonesia Climate Change Trust Fund (ICCTF) has not yet been disbursed at all due to the fund'€™s limited scope of work, according to Climate Change Mitigation Board chairman Sarwono Kusumaatmaja.

During a focus group discussion in Jakarta on Thursday, Sarwono recommended the establishment of an institution to accommodate the diverse types of financing needed to address climate change, both in terms of funding targets and sourcing.

"The mechanism [of climate change funding] should be transparent and accountable. The funding outcomes should also be quantifiable. Its monitoring, reporting and verification must be excellent and in accordance with the guidelines issued by the United Nations Forum Convention on Climate Change [UNFCCC]," said Sarwono.

Since the ICCTF is an agency under the National Development Planning Agency (Bappenas), its scope of work is limited to planning and development. "[That's why] it has difficulty in implementation," he said.

According to Biodiversity Foundation (Yayasan Kehati) governing board chairman Ismid Hadad, climate change mitigation needs large-scale and long-term funds that may not be available only from the state and regional budgets.

"The existence of a trust fund for climate change is necessary, but it will only be effective if it can operate independently, outside the government bureaucracy, and meet internationally recognized standards for trust funds," said Ismid.

Unfortunately, Government Regulation (PP) No. 80/2011 only regulates trust funds that do not meet international standards and PP No. 23/2005 on special public service agencies (BLU) is only applicable for to the management of funds from state and regional budgets.

Bappenas environmental affairs director and ICCTF secretary Wahyuningsih Darajati said that regulation adjustments were needed to legally clear the way for climate change trust funds to operate in the country.

She added that Indonesia was currently receiving US$600 million for a duration of three years from US-based Millennium Challenge Corporation (MCC) to increase household incomes in project areas.

"We are still considering the best institutional schemes for allowing these funds to be disbursed," she said, adding that Indonesia also received an international fund of US$1 billion for a duration of five years from Norway for emissions reduction programs with reimbursed performance-based schemes. (kes)(+)

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