The Green Climate Fund’s (GCF) funding portfolio from 2020 to 2023 have been driven by the financial contributions of developed nations gathered through the first replenishment period (GCF-1). After mobilizing USD 10 billion in GCF-1 and investing in climate projects worth over USD 40 billion, including co-financing, a new replenishment period is on the horizon with new streams of funding and revamped priorities. The risk of climate change poses a bigger threat than ever, and the second replenishment period (GCF-2) will be a crucial component in efficiently catalyzing more robust climate finance globally as well as in Indonesia. In the spirit of welcoming GCF-2, it is essential to take a brief look back on the financing priorities of this period and how it has impacted GCF activities in Indonesia over the past few years. co-financing, periode pengisian yang baru akan segera dimulai dengan aliran pendanaan baru dan prioritas yang diperbarui. Risiko perubahan iklim menjadi ancaman yang lebih besar dari sebelumnya, dan periode replenishment kedua (GCF-2) akan menjadi komponen yang penting untuk mengkatalisasi pendanaan iklim yang lebih kuat di dunia dan Indonesia. Dalam menyambut GCF-2, penting untuk melihat kembali secara singkat prioritas-prioritas pendanaan pada periode ini dan bagaimana hal tersebut berdampak pada kegiatan GCF di Indonesia beberapa tahun silam.

The GCF’s strategic plan during GCF-1 revolved around four main priorities, namely strengthening country ownership, fostering portfolio that shifting the public’s paradigm to climate change activities, catalyzing private sector finance at-scale, and improving access to GCF resources. The GCF National Designated Authority (NDA) in Indonesia has reflected these priorities within its own goals and activities, especially through the outcomes of Readiness III Program. Indonesia’s priority activities include improving the balance of funding allocation across priority sectors​, the number of high-quality concept notes and funding proposal submitted by national Direct Access Entities (DAEs)​, and private sector engagement, all of which aligns with GCF-1 priorities.

From the beginning of GCF-1, the NDA has provided continuous technical support to both existing and potential Direct Access Entities (DAEs) in their accreditation processes and relevant capacity building activities, aiming to strengthen Indonesia’s country ownership. Currently, the NDA is working closely with several financial institutions that are nominated DAEs to hone their capacity in preparation for GCF accreditation. Annual Participatory Review (APR) fora, national and regional workshops, and several coordination meetings were also conducted to inform various stakeholders across Indonesia about on how to access international climate financing resources, such as the GCF. Furthermore, the NDA also has put in motion preliminary actions along with relevant stakeholders to identify priority sectors to access GCF funding in the near future, an indispensable step in the right direction to balancing sectors in Indonesia.

In GCF-1, Indonesia contributed USD 500,000 to the USD 9.9 billion of total pledges by countries. Twice as big as the amount contributed to the Initial Resource Mobilisation. In GCF-1 United Kingdom is the biggest donor, followed by France and Germany. GCF-2 was launched in July 2022 on the 33rd GCF Board meeting. The pledging conference took place on 5 October 2023 and since then has received pledge from Germany, Austria, and Czech Republic. Initial Resource Mobilisation. Di GCF-1 Kerajaan Britania adalah donor terbesar, diikuti Perancis dan Jerman. GCF-2 diluncurkan pada Juli 2022 pada Pertemuan Dewan GCF ke-33. Konferensi pengumuman komitmen diadakan pada 5 Oktober 2023dan telah menerima komitmen dari Jerman, Austria, dan Republik Ceko.

The first replenishment period has undoubtedly cleared the pathway for GCF and Indonesia to comprehend the core issues of financing climate action. As developed countries are starting to make more financial pledges and strategies are being formulated for GCF-2, the NDA aims to continue building on the momentum of GCF-1 priorities and activities in Indonesia under a newly replenished funding.