As the largest climate finance mechanism in the world, it is important for the Green Climate Fund (GCF) to tailor its business processes to the needs of its target countries, namely developing countries. A strong sense of ownership from developing countries is a great asset for the GCF that no other climate finance mechanism has. In order to provide a platform for stakeholders to strengthen their relationship with the GCF and related partners, the GCF organized a Regional Programming Dialogue, including with countries in Asia Pacific. The meeting was held on August 7-11, 2023, in Songdo, Republic of Korea. The purpose of the meeting was to identify climate mitigation and adaptation initiatives and share experiential learning to strengthen the impact of programs and projects funded by GCF in the Asia Pacific region.
Indonesia, represented by the Fiscal Policy Agency as the National Designated Authority (NDA) of GCF in Indonesia, along with Accredited Entities, PT Sarana Multi Infrastruktur (PT SMI) and the Partnership, attended this event.
From the series of meetings, there is some information related to potential sectors and some new programs that will start in 2024. This information can serve as a guide for NDAs, project applicants, and potential accredited entities in accessing GCF funding in the future.
A. Increased focus on supporting national entities to access the GCF
The GCF Strategic Plan 2024-2027 adopted at the 36th Board meeting (B.36) states that GCF will increase readiness support for national entities. This includes the accreditation process as well as project development. Going forward, in addition to grant funding through implementing partners, NDAs can also access technical support from GCF on an ad-hoc basis. This support can be in the form of assistance for potential Direct Access Entities (DAEs) in preparing for the accreditation application process, or the preparation of project proposals. GCF is also currently preparing a new readiness support window that can be accessed directly by DAEs. This funding window will be discussed in the upcoming B.37.
B. Increased focus on adaptation and cross-cutting projects to achieve balanced funding portfolio
To date, mitigation funding still dominates the GCF. In the GCF Strategic Plan 2024-2027, GCF states that it will address urgent adaptation and resilience needs. In addition, GCF also mentions local actors as target recipients of funding. For example, small-scale farmers can adopt climate-resilient and low-emission agriculture and fisheries practices, which will also secure livelihoods and improve food systems.
C. Potential Sectors in Indonesia
National reference documents on climate change, such as those issued by Bappenas and the Ministry of Environment can guide potential project developers, due to GCF's "country-driven" principle. However after some discussion, there are several sub sectors in Indonesia which are align with the GCF Strategic Okan 2024-2027. Some sub-sectors that can be considered according to the GCF are:
climate change adaptation activities in coastal areas,
development or securing climate-resilient infrastructure
energy efficiency and transportation. One example is green shipping, given the geographical condition of Indonesia which is an archipelago country
Expanding access to affordable and reliable renewable energy, especially in the most difficult to reach areas.
D. Synergy between projects
GCF senantiasa mendorong adanya program dengan skala yang lebih luas dan strategis. Saat ini, Indonesia memiliki beberapa pipeline proyek dalam satu lingkup result area. Untuk memastikan adanya sinergi dan meningkatkan strategi negara dalam mengakses pendanaan GCF, perwakilan GCF akan memberikan pendampingan advis secara langsung, melalui kunjungan ke negara mitra seperti Indonesia.
The Way Forward
The Regional Programming Dialogue meeting generated a lot of learning that stakeholders can review, whether accredited entities, project proponents, or those who want to become partners of GCF projects. The NDA also has several strategies under the Third Phase Readiness Program that are in line with some of the new focuses of the GCF. These strategies include focusing support for national entities, increasing synergies between projects, and building concept notes with a programmatic approach. It is hoped that this can help Indonesia achieve national climate targets.
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