MWA ICCTF Meeting. Jakarta, 27 June 2014

Transcription

1 MWA ICCTF Meeting Jakarta, 27 June 2014 ICCTF Secretariat Wisma Bakrie 2, 20 th floor Jl. H.R. Rasuna Said Kav. B-2, Jakarta 12920, Indonesia Phone: , Fax: Web:

2 Indonesia Climate Change Trust Fund 2 Meeting Agenda Objective: to introduce MWA members about role and responsibility; to update the progress of ICCTF activities and transition milestone; to make key decisions/endorsement on PDA, Executive Director, Business Plan and bylaw. Agenda: I. Introduction to MWA II. Update on ICCTF progress III. Update on transition milestones: 1. Appointment of PDA (Pengelola Dana Amanat/Fund Manager) 2. Appointment of Executive Director 3. Endorsement on bylaw (Pedoman Tata Kelola) 4. Endorsement on Fundraising Strategy and Business Plan IV. Decision and Recommendation

3 Indonesia Climate Change Trust Fund 3 I. Introduction to MWA ICCTF 1. Membership 2. Responsibility (Presented by the Chairman of MWA ICCTF)

4 Indonesia Climate Change Trust Fund 4 1. MWA ICCTF Membership MWA ICCTF membership based on Bappenas Ministerial Decree No. KEP.33/M.PPN/HK/03/2014 No Position Institution Name/Current Official 1 Chairman Ministry of National Development Planning /Development Planning Agency (Bappenas) 2 Secretary Ministry of National Development Planning /Development Planning Agency (Bappenas) 3 Member Ministry of National Development Planning /Development Planning Agency (Bappenas) Lukita Dinarsyah Tuwo, Vice Minister of National Development Planning Endah Murniningtyas, Deputy Minister for Natural Resources & Environment Wismana Adisuryabrata, Deputy Minister for Development Funding 4 Member Coordinating Ministry of Economy Bobby Hamzar Rafinus, Deputy Minister for Fiscal & Monetary Coordination a.i. 3 Member Coordinating Ministry of People s Welfare Asep Djembar Muhammad, Expert Staff for Climate Change and Disaster Mitigation 4 Member Ministry of Finance Andin Hadiyanto, Head of Fiscal Policy Agency 5 Member National Council on Climate Change (DNPI) Agus Purnomo, Head of Secretariat 6 Member Representative of private sector Shinta Widjaja Kamdani 7 Member Representative of civil society organization Fabby Tumiwa 8 Member Representative of academia Jatna Supriatna 9 Member Representative of donor contributor: UK Jenny Yates, Head of UKCCU 10 Member Representative of donor contributor: Denmark Mikael Ekman, Chargé d'affaires, the Embassy of Denmark 11 Member Representative of donor contributor: Germany Andreas Beckermann, Counsellor & Head of Development Cooperation

5 Indonesia Climate Change Trust Fund 5 2. Responsibility of MWA 1. Responsibility of MWA ICCTF based on Bappenas Ministerial Regulation No.3/2013 on LWA-ICCTF a. to appoint the Fund Manager (PDA) ; b. to set the policy for program implementation, carry out activities and manage the fund as agreed in the grant agreement; c. to select and appoint the Executive Director; d. to establish the work plans and budgeting for activities; e. to prepare the financial reporting of the ICCTF; f. to make withdrawals of the Grant and channeling of the Grant g. to order the payments of the Grant to the parties concerned; h. to carry out procurement of goods/services; and i. to endorse the bylaw 2. Responsibility of Chairman of MWA ICCTF: a. to facilitate the decision making process in MWA; b. to sign a letter/document MWA s decisions; and c. to submit reports on the implementation of activities and fund management of the ICCTF to the Minister of National Development Planning and the Minister of Finance. 3. Responsibility of Secretary of MWA ICCTF: a. to manage documents and decisions of MWA, convene MWA meetings, maintain the records of the process and results of the meetings, and publish decisions of MWA; b. to prepare supporting materials for the decision making by MWA; c. to coordinate the reporting of the ICCTF; and d. to perform other secretarial duties

6 Indonesia Climate Change Trust Fund 6 II. Update on ICCTF Progress 1. Milestone & Description of ICCTF Transition 2. Small Grant Program 3. ICCTF Media Fellowship Progress of Ongoing Projects 5. Financial Status (Presented by the Secretary of MWA ICCTF)

7 Indonesia Climate Change Trust Fund 7 1. Milestone of ICCTF Transition in 2014 Q1 SC meeting: 1. Signed Kepmen MWA ICCTF 2. Presented draft of Fundraising Strategy and Business Plan Q3 MWA meeting: 1. Signed new Prodoc with LWA-ICCTF 2. Established Satker ICCTF Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Q2 MWA meeting: 1. Appointed PDA 2. Appointed Executive Director 3. Endorsed Fundraising Strategy and Business Plan Q4 MWA meeting: 1. PREP-ICCTF project closing Description of Milestones

8 Indonesia Climate Change Trust Fund 8 2. Small Grant Program (SGP) 1. Progress a. funding approvals were granted to 6 projects under SGP scheme b. Letter of Agreement for project implementation were signed in May/early June c. Projects will end in November Funded Projects SGP 2014 projects include: 1) Enhancing Carbon Sequestration in Community Forest (AruPA, Yogyakarta) 2) Public-Private Partnership Model in Tackling Deforestation and Forest Degradation (Forestry Faculty IPB, Bogor) 3) Planning and Information System for Street Lighting Energy Efficiency (Politeknik ATMI, Surakarta) 4) Adaptation on Seaweed Aquaculture (Humaniora, Kendari) 5) Strengthening Climate Information System for Farmer and Fisherman (PIKUL, Kupang) 6) Strengthening Coastal Community Resilience through Participatory Multimedia Technology (BINGKAI Indonesia, Yogyakarta)

9 Indonesia Climate Change Trust Fund 9 3. ICCTF Media Fellowship Progress a. The media fellowship program was launched in May 2014 b. Receiving more than 60 proposals. Ten groups of journalist have been selected as the winner/recipient of the fellowship in May c. The first session of mentoring for the journalist has been carried out on 7-8 June 2014 d. Implementation collaboration: Independent Journalist Alliance (AJI) Jakarta. 2. Next Steps a. In-depth & on-the-ground coverage supported by sessions of mentoring/coaching from senior journalists: June Aug b. Publication of the reportage in each participating media: Aug c. Compilation of the published reportage in a book: Sep d. Launching of the book on published reportage: Oct ICCTF Media Advertorial The advertorial placement is aimed to disseminate information on ICCTF s activities to public and all stakeholders and to attract possible future donors. The advertorial will be placed in The Jakarta Post and Tempo English, two English-language media in Indonesia, between April and December 2014.

10 Indonesia Climate Change Trust Fund Progress of On-going Projects ( ) Sust. Degraded Peatland Management (Ministry of Agriculture) Finalized map of degraded peat land for Sumatera, Papua and Kalimantan Completed training of GHG measurement Sustainable management and optimized crop production is ongoing. Policy inputs and guidelines is ongoing. Delivery status as of 31 May 2014: 74%. Schedule of completion: August Sust. Community Forest & Biomass Energy Estate (Ministry of Forestry) Planted Red Caliandra planting in 214 ha degraded land (target 170 ha) of community forest. Conducted field work baseline for carbon accounting of 214 ha. Installed machinery for wood pellet factory, and fully operational/production in June 2014 Delivery status as of 31 May 2014: 78%. Schedule of completion: September Health Vulnerability Assessment & Adaptation (Ministry of Health) Finalized vulnerability assessment report for 5 provinces Draft of guideline and toolkits to facilitate community adaptation strategic planning are available and has been piloted in East Java on Mid March 2014 Finalized public awareness materials for local government Delivery status as of 31 May 2014: 75%. Schedule of completion: August 2014.

11 Indonesia Climate Change Trust Fund Financial Status Allocation (USD) Total (USD) Total Fund Contribution 11,727,394 DFID/UKCCU 9,507,403 AusAID 1,415,184 SIDA 309,502 UNDP (TRAC) 179,835 Unprogrammed 315,470 Total Disbursement & Budget Plan ,727,394 Total Disbursement for ,913,025 Total Budget Plan for ,814,369 Budget Allocation Note: Fund contribution from the donors was made in Remaining undisbursed fund in 2014 is proposed to be transferred to PDA of LWA-ICCTF (Bank Mandiri). There are no new fund contributions committed by the donors for the LWA-ICCTF, except from Danida. fundraising to donors is urgently needed.

12 Indonesia Climate Change Trust Fund 12 III. Update on Transition Milestone 1. Appointment of PDA (Fund Manager) 2. Appointment of Executive Director 3. Endorsement on Bylaw (Pedoman Tata Kelola) 4. Endorsement on Fundraising Strategy and Business Plan (Presented by the Secretary of MWA)

13 Indonesia Climate Change Trust Fund 1. Appointment of PDA Progress a. in 2012 UNDP recommended Bank Mandiri as selected Fund Manager. b. Steering Committee approved Bank Mandiri on 29 Nov c. Bank Mandiri was formally appointed on 4 February 2013 (Letter of Chairman of Steering Committee). d. Draft of legal agreement with Bank Mandiri is finalized in Dec e. In compliance with Permen Bappenas No.3/2013 on LWA ICCTF, MWA ICCTF needs to appoint Bank Mandiri as the PDA. 2. Next Steps a. Appointment of Bank Mandiri as PDA by MWA b. Finalizing and signing contract with Bank Mandiri

14 Indonesia Climate Change Trust Fund 2. Appointment of Executive Director Progress a. Executive Director of ICCTF Secretariat will be responsible for supporting MWA and dayto-day operation of ICCTF. b. After 2 rounds of procurement process, the Bappenas Procurement Team could not find any suitable candidate for the position. This allows for direct appointment method. c. Assessment on potential candidates was carried out and nominated top three best candidates to be approved by MWA in this MWA meeting d. ToR, Key Performance Indicator and CV of the candidates have been shared to MWA members before this MWA meeting 2. Next Steps a. MWA to agree upon and appoint the best candidate for Executive Director position. b. Contract will be made to enable the Executive Director join at earliest possible (expected: July 2014) Candidates Profile

15 Indonesia Climate Change Trust Fund 3. Bylaw / Pedoman Tata Kelola Progress a. Pedoman Tata Kelola regulates the organizational management of LWA ICCTF that include: 1) Role & responsibility of LWA ICCTF organs (MWA, PDA, Secretariat) 2) Project management 3) Financial management b. Pedoman Tata Kelola is finalized and awaits MWA endorsement c. Detail procedures of ICCTF operation will be regulated in Standard Operating Procedures (SOPs) 2. Next Steps a. MWA to endorse Pedoman Tata Kelola b. Detail SOPs to be finalized by Secretariat and endorsed by Chairman of MWA ICCTF

16 4. Fundraising Strategy and Business Plan Indonesia Climate Change Trust Fund Progress a. ICCTF Steering Committee on 24 Mar approved the draft of Fundraising Strategy and Business Plan and recommend further improvements of the document. b. Improvements to the Business Plan has been finalized accommodating inputs from various stakeholders. c. The document contains the following strategy: i. Indonesia s Policy on Climate Change ii. ICCTF Profile iii. Investment and Fundraising Strategy iv. Monitoring and Evaluation v. Financial Management vi. Organizational Development d. The Business Plan document has been circulated to MWA members before this MWA meeting 2. Next Steps a. MWA to endorse the Business Plan for its implementation under LWA ICCTF arrangement Overview of ICCTF Business Plan

17 Indonesia Climate Change Trust Fund 17 IV. Decision and Recommendation

18 Indonesia Climate Change Trust Fund 18 III. Decision and Recommendation No Issues Decision and Recommendation 1. Appointment of PDA (Fund Manager) Bank Mandiri is approved to be the Fund Manager (PDA) 2. Appointment of Executive Director - Candidate #1 (Mr. Noorsalam R. Nganro) is approved to be the Executive Director under 6 months probation. - KPI for the Executive Director is to be developed further with inputs from MWA members, decision by circular. 3. Endorsement on Fundraising Strategy and Business Plan Endorsement is postponed, awaiting inputs from MWA members until mid of July Endorsement on bylaw (Pedoman Tata Kelola) Endorsement is postponed, awaiting inputs from MWA members until mid of July Other issues Next MWA meeting on 24 July 2014 to discuss Issue No.3 and 4

19 Indonesia Climate Change Trust Fund 19 Thank you...

20 Indonesia Climate Change Trust Fund 20 Description of Milestones of ICCTF Transition in 2014 MILESTONES MILESTONES/ACTIVITIES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 1. LEGAL BASIS a. Finalization and signing of Kepmen MWA ICCTF. b. Finalization and signing of new Prodoc with LWA ICCTF as Implementing Partner c. Grant registration of new Prodoc of LWA ICCTF to MoFin. d. Closing of PREP-ICCTF project 2. SATKER ICCTF a. Appointment of structure/ officials for Satker ICCTF b. Submission to and approval of ICCTF Satker by MoFin. 3. PDA a. Appoint. of Bank Mandiri as PDA b. opening escrow account at PDA 4. SECRETARIAT a. Recruitment and appointment of Executive Director b. Conversion of staffs contract from PREP-ICCTF to MWA ICCTF c. Finalization and endorsement of bylaw (Pedoman Tata Kelola) d. Finalization & endorsement of Fundraising Strategy & Business Plan back Kepmen MWA, PDA, Executive Director, bylaw, Business Plan Satker, Prodoc PREP-ICCTF Closing

21 Indonesia Climate Change Trust Fund 21 ICCTF Business Plan (1) I. Private Sector Participation back Enabling policy frameworks have to be fostered in order to incentivize private sector investments. New ICCTF business models are being developed, specifically in the context of early stage development risk mitigation and leveraging of funds. Early strategic dialogues with financing institutions and project developers are ongoing. Potential Green PPPs are being screened and evaluated whether they qualify as fundable projects in compliance with ICCTF s rules and regulations/thematic foci. No direct private sector investments are expected before 2016/2017 to leverage public and/or donor funds.

22 Indonesia Climate Change Trust Fund 22 ICCTF Business Plan (2) II. Project Pipeline Development back Scaling up climate finance requires a well-functioning project cycle process to develop a robust project pipeline. Close cooperation between the ICCTF and the CCNCT secretariat increases synergies but requires thoughtful resource planning and coordination. The availability of robust data for both RAN/RAD-GRK and RAN-API is essential to account for any changes. Quality control gaps still exist, especially related to human competencies and methodological verifications. Ultimately the CCNCT secretariat is supposed to develop long lists of incoming proposals based on clear selection criteria before submitted to the ICCTF.

23 Indonesia Climate Change Trust Fund 23 ICCTF Business Plan (3) III. Forecasted Earnings Forecasted earnings are based on the best case scenario. As information becomes more certain related to funds committed to the ICCTF, budgets will be developed accordingly. Source of funding USD (mio) SUTRI NAMA* SSL* DANIDA * Additional donor funds (est.)* FREDDI* APBN * * * Multilateral (GCF)* Totals (in million $ USD) , Total earnings The figures shown should be used with caution, they do not represent firm commitments as in most cases specific agreements have not been signed. Financial sources for which back confirmation has not been received yet are marked with an asterisk.

24 IV. Identified Funding Sources and Timelines back ICCTF Business Plan (4) Prime funding sources for the ICCTF will remain funds raised/received from development partners in the foreseeable future. APBN funds are expected to remain low in efforts to achieve the 26% GHG reduction goal (APBN funding only for operational expenses ICCTF/CCNCT and SGP). Contributions from bilateral development partners are expected to peak (presidential elections). An summit will be organized in September which requires the creation of attractive proposals for targeted audiences. Establishment of a FREDDI fund for REDD+ activities remains uncertain which poses an opportunity for the ICCTF to engage in negotiations with the Norwegian government. The securitization of SUTRI NAMA funds by 2015 will be a test to receive direct transfers from development partners which is of strategic importance to qualify as NFE for the Green Climate Fund. Indonesia Climate Change Trust Fund 24

25 Indonesia Climate Change Trust Fund 25 ICCTF Business Plan (5) V. Recommendations 1) SOPs are currently revised in order to effectuate the channeling of funds to beneficiaries other than line ministries. Such tasks require the ongoing support of Bappenas and MoF. 2) For the ICCTF to become recognized as the only national trust fund dedicated to climate finance in Indonesia, coordination with the CCNCT as well as the REDD+ secretariat is essential. 3) Bappenas should differentiate between the 26% and 41% reduction targets. This suggests specific accounting for any reductions being achieved through international donor funds. 4) Bappenas should engage with the MoT to develop a contribution agreement in lieu of the SUTRI NAMA project to safeguard ICCTF s role as a channeling partner. back

26 Budget Allocation No A ICCTF Operation Activity Disbursed Budget Plan 2014 Disbursed May 14 Remaining to disburse till Dec ICCTF M&E, policy dialogue, capc. dev. 1,396, ,524 1,485, ,601 2.ICCTF Secretariat overhead 868, , , ,231 3.UNDP TRAC 131,035 49, ,349 20,686 4.Capacity development by UNDP 107,094 84, ,466 79,841 5.Unallocated (remaining from funded projects) ,559 Subtotal A 2,503,689 1,368,370 2,720,700 1,408,918 B Project Funding 1.Energy Conservation (MoI) 2,135,672-2,135,672-2.Sustainable Peatland Management (MoA) 1,272,243-1,272, , , , ,347 3.Public Awareness & Education (BMKG) 1,198,918-1,198,918-4.Community Forest Management (MoFor) 469, , , ,567 5.Health Vulnerability Assessment (MoH) 561, , , ,708 6.Small Grant Program for CSO - 291, ,818 Subtotal B 6,409,336 1,445,999 6,409,336 1,188,440 T O T A L 8,913,025 2,814,369 9,130,037 2,597,358 back Indonesia Climate Change Trust Fund 26

27 Executive Director Candidates Profile Noorsalam R. Nganro Junino Jahja Nico Slamet Education PhD Masters Masters Work Experience 29 years 31 years 32 years Field of Expertise Environment Finance Banking & trading Strength Available for full-time engagement with ICCTF. Familiar with environment and climate change fields. Involved in the establishment of a national trust fund (MCAI), familiar with trust fund management. Extensively involved in community development projects and also biomass project (one of ICCTF funded project). Expertise and extensive work experience in finance and financial management. Experienced working at strategic posts at the Corruption Eradication Commission (KPK), Peruri, and at several state-owned enterprises. Highly interested in community development projects. Expertise and work experience in the banking and trading business. Expertise in monitoring & evaluation. Weakness Work experience in trust fund and fund management, but his educational background not in Finance/Accounting. Less experience in climate change issues. Only available for part-time engagement with ICCTS. He s currently a Commissioner at Rajawali Nusantara Indonesia (RNI) and lecturer at University of Indonesia. Less experience in climate change issues. Only available for part-time engagement with ICCTS. He s currently an individual commodity trader and has some other business activities. back Indonesia Climate Change Trust Fund 27