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My short recommendation on financing climate change adaptation in Indonesia

Updated: Nov 25, 2020

We had the final workshop for an Asian Development Bank (ADB)’s climate change project on Friday. The last 1 year, I worked on a financial mapping and success factors on adaptation.

My recommendation can be applied for other climate change adaptation projects in Indonesia.

Green Climate Fund (GCF) and Adaptation Fund (AF) will be, in theory, good funds to support adaptation activities with private sector, but it will be too difficult or takes too long to process. It needs an intermediate for companies to apply, in most cases. If your adaptation activities are related to the bankable activities of bigger players such as ADB and UN and need significant financial supports, these funds are still your option.

Climate Change Trust Fund (ICCTF) is a good option if you are not a government. It is a grant fund and has relatively a simpler and faster process. It is not open for local governments, but they can team up with universities and companies.

If you do not need a large fund, you may consider CSR or microfinance. You neither need to check a government intention nor make a 200-page-fortunetelling proposal for this option.

My person lesson learnt are as below:

1) As ADB is a "bank", assessing financial demands and supply are a part of their business.

2) Cases, tasks, and schedules changed often and often these were arranged in the last minute. This reminded me to be flexible to work in Indonesia.

3) I was the only foreigner in this international project. In this case, it is much more efficient to use their local language. I should learn more Bahasa Indonesia.

Lastly, CCROM is a good local consultant team and hope to work with them more!











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