MRV of Finance Received: Potential Practice and Issues in Indonesia Suzanty Sitorus Finance Working Group, National Council on Climate Change Global Forum on Environment Event/ Climate Change Expert Group (CCXG) Seminar on MRV and Carbon Markets Paris, 19-20 September 2011
Outline of presentation Regulatory framework for monitoring, evaluation and publication of international assistance Potential institutional arrangement for MRV of finance received Parallel tracks of tracking international climate finance Potential issues in the implementation of MRV of finance received
Reporting, monitoring, evaluation, publication of external loan and/or grants Government agencies or corporations receiving external loan and/or grants shall provide 3 monthly report to the Minister of Finance and Minister of Planning (Bappenas), with information on: Procurement of goods and services Physical progress of activities Realisation of absorption Problems in implementation Follow-up on problems resolution. Ministry of Finance: 3-monthly monitoring, evaluation and reporting on realisation of absorption of external loans and/or grants & other financial aspects. Ministry of Planning: 3-monthly monitoring, evaluation and reporting on performance of activities financed by external loan and/or grants. Joint evaluation could be done by Ministry of Finance and Ministry of Planning once in every 6 months. *Government Regulation No 10 Year 2011 in replacement of GR 2 Year 2006
Publication on external loan and/or grants* Ministry of Finance publishes information on external loans and grant periodically at least once in every six months. Publication on external loans shall present info on: External loan policy Position on external loan including structure of maturity and interest composition Sources of external loan Realisation of absorption Fulfilment of obligation (to repay the loan). Publication on grant, shall at least cover : Grant policy Amount, position, and composition of grant currencies Sources and receivers of grant Types of grant. *Government Regulation No 10 Year 2011
UNFCCC Possible institutional arrangement for MRV of finance received by Indonesia DNPI National Communication and BUR Periodical (6-monthly) Publication Ministry of Environment Government agencies and corporations receiving external loan and grant 3-monthly reporting Ministry of Finance Bappenas 6-monthly Joint evaluation = Flow of information
Parallel tracks of reporting on international climate finance Developed countries National Communication and BR UNFCCC Survey on Monitoring the Paris Declaration DNPI Donor agencies AIMS (Bappenas) OECD National Communication and BUR Periodical (6-monthly) Publication Ministry of Environment Government agencies and corporations receiving external loan and grant 3-monthly Reporting Ministry of Finance Bappenas 6-monthly Joint Evaluation = Flow of information
Progress on monitoring, evaluation and publication of international assistance Information management, reporting and publication system for external loan is functional. Debt and Management and Analysis System + External Debt Information System = External Debt Statistics of Indonesia (joint publication between Bank Indonesia and Ministry of Finance) Data on external loan of Government of Indonesia, central bank and private sector It can also be used to monitor potentials of external loan risks Tracking grants is more complex than external loan Too many varieties in scheme and means of implementation, e.g. donor-executed grants, grants to NGOs
Issues Climate finance marker is inexistent Definition of climate finance (vs development assistance) would need discussion with donor countries Where and how to start? Comparability between national government reports to UNFCCC and other reports (incl. OECD survey) Who has to do the analysis, comparability and verification? Reporting timeframe. Domestic reports vs reports to UNFCCC (National Communication, BUR) For comparability: NatCom/BUR vs NatCom/BR National reports and non-unfccc reports, e.g. OECD survey. The need to incorporate MRV of finance from domestic sources. Overall framework of MRV: mitigation and support should be coherent, considering 3 types of NAMAs. How to incorporate non-financial support, i.e. technology and capacity building, into the system?
Thank you