UNDP appointed as interim trustee for Indonesia Climate Change Trust Fund

Jakarta, 14 September 2009 – The Government of Indonesia has officially launched a grant mechanism to manage climate change donations from donor countries today.  The Indonesia Climate Change Trust Fund or ICCTF is expected to support programme related to climate change mitigation and adaptation. UNDP has been appointed as interim trustee to manage the fund during the transitional period before the appointment of a National Trustee.

The establishment of the trust fund is important not only in showing Indonesia’s commitment to fight climate change but also marking assurance for more efficient, transparent and accountable financing mechanism. It aims at combining domestic and international source of fund in order to invest them into those that are most vulnerable to the negative impacts of climate change.

The Minister of Finance, Sri Mulyani Indrawati, who attended the launch said that the trust fund is critically important to mobilize support and coordinate donors, both bilateral and multilateral donors.  Ms Sri Mulyani added, “Climate change issue is not a single environmental issue, but related to various other issues, including the Indonesia’s commitment to achieve the MDGs.”

Meanwhile, the Minister of National Development Planning, Paskah Suzetta said that he expected the   formation of the ICCTF would trigger more interest from non-governmental and philanthropic organizations to help Indonesia cope with climate change. He also mentioned that the Government of Indonesia was formulating 20-Year Indonesia Climate Change Sectoral Roadmap that would prioritize development programs related to climate change.

United Kingdom, Australia, Norway, and the Netherlands have committed to allocate grants to ICCTF. The UK government has allocated 10 million poundsterling to help Indonesia fighting the climate change through this newly founded financing mechanism. The energy, forestry, transportation, waste management, agriculture, maritime and fisheries, water resources and health sectors will receive priority from the trust fund.

According to UNDP Resident Representative/UN Resident Coordinator, El-Mostafa Benlamlih, UNDP will not decide about fund allocation and programme approval decisions, thereby ensuring there will not be any conflict with the important national ownership of the Jakarta commitment. “Fund allocation and programme approval are exclusively the responsibility of the ICCTF Steering Committee that will be chaired by the Government,” Mr Benlamlih added.

UNDP will work closely with the Government of Indonesia during this transitional period and it will endeavor to strengthen national capacity to take over this responsibility while ensuring efficiency, effectiveness, transparency and accountability.

In the area of environment, besides working to combat climate change, UNDP Indonesia also promotes the use and the widespread application of renewable energy as well as the reduction of Indonesia’s greenhouse gas emissions. 

For further information, please contact:

• Tomoyuki Uno : tomoyuki.uno@undp.org, phone: +62.21.3141308 Ext. 203
• Olenka Priyadarsani : olenka.priyadarsani@undp.org , phone: +62.21.3141308 Ext. 179