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5. Funding and investment in mitigation efforts in the context of sustainable garbage management.
6. Developing cooperation among stakeholders, especially in the garbage sector for implementing integrated mitigation efforts in the context of
sustainable garbage management.
So, the measures to be taken in developing the waste sector NAMAs are: 1. Deining coordinator for developing the waste sector NAMAs at the national
level. 2. Coordinating with local levels in data collection for waste management.
3. Determining projection for future waste sector planning, for example infrastructure projection, macro data such as population, GDP, projected
waste composition and projected technologies. 4. Agreeing to assumptions used for developing baseline scenarios.
5. Determining calculation tools or methodologies for supporting baseline development.
6. Identifying potential mitigation action scenarios. 7. Proposing policies and funding for supporting mitigation scenarios.
8. Proposing local mitigation action plans for the waste sector from the local
level to the national level coordinator, included in RAD-GRK. 9. Developing MRV mechanisms for the waste sector NAMAs development
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5. FUNDING
Indonesia’s commitment to reducing GHG emission by 26 per cent from baseline by 2020 is related to the government’s capacity in mobilizing
domestic funding sources. Not only that, additional commitment achievement for GHG emission reduction up to 41 per cent from baseline also requires
international funding mobilization.
Domestic and international funding source mobilization is based on the needs for funding GHG emission reduction programs as identiied in the
previous chapter. Chapter 5 will discuss general policy on funding sources and mechanisms for funding GHG emission reduction activities.
5.1 Funding Sources
Funding for supporting GHG emission reduction activities may come from domestic and international funding. Domestic funding may come from APBN
and APBD as well as participation from theprivate sector. On the other hand, international funding may come from bilateral and multilateral cooperation as well
as the carbon market. The following is a brief explanation of the funding sources.
5.1.1 Domestic Funding Sources
Funding policy for supporting voluntary GHG emission reduction commitment is part of the policy established in the 2010-2014 RPJMN. Thus, climate
change issues have obtained funding priority through the APBN mechanism. GHG emission reduction programs are an integral part of the national
development program with an adjustment to addressing climate change impacts so that it is not exclusive. Most of GHG emission reduction activities
will be conducted by the regions. Therefore, the funding must be integrated with local government programs funded by the APBD. Additional funding of
GHG emission reduction activities can come from private sectors.
APBN’s funding source may take the form of pure rupiah and International Loans and Grants PHLN. Based on the 2010-2014 RPJM, the estimated resource
envelope for the timeframe related to GHG emission is budgetted around IDR37,889 trillion Book 2 Chapter I Cross-cutting Climate Change of Mitigation
Group, 2010-2014 RPJM. In the period of 2015-2020, the government needs to provide a suficient resource envelope to inance the following programs so
that it can reach the GHG emission reduction of 26 per cent.
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Funding of GHG emission reduction programs implemented by the regions are basically conducted through APBD. GHG emission reduction programs are
not completely new special programs, but are also within local governments’ existing programs with adjustment so that they can contribute to GHG
emission reduction. Therefore, the inancing can as much as possible use
the existing APBD. Considering the limited local inancial capacity, it is likely that funding will be chanelled from APBN to APBD.
Other potential fund sources to deal with climate change are domestic grants from the private sector and community managed by the government. The
government will develop regulations and mechanisms that enable grantors to channel the funds.
Some expected domestic private fund sources that can inance GHG emission reduction activities come from banking, non-banking and Corporate Social
Responsibility CSR. Fund sources coming from banking general banks and syariah banks and non-banking domestic capital markets, insurance,
inancial institutions, pension fund institutions, etc can be mobilized to inance
private investment by beneicial inancial returns. Therefore, there needs to be an incentive policy from the government to banking and non-banking
institutions that provide soft loans to industries that apply green technologies or support GHG emission reduction. To realize that, it is necessary to have
coordination between the government and the Bank Indonesia in developing banking and non-banking strategic policy.
CSR is a voluntary initiative from an enterprise to provide positive contribution to the surrounding community, so that it opens up opportunities to use it for
inancing activities related to GHG emission reduction efforts in line with the economic growth and green technology campaign. In the future potential
funds from CRS are predicted to be fairly large.
5.1.2 International Funding Sources
International funding for GHG emission reduction programs consists of bilateral and multilateral cooperation and the carbon market. International
fund use should not, as far as possible, put excessive burden on the state’s inance.
At Copenhagen’s 15th COP and Cancun’s 16th COP, it was agreed that developed countries must provide new and additional fund sources to support
developing countries in implementing mitigation actions and climate change adaptation. The fund is predicted to reach US30 billion for 2010-2012 and a
