CONNECT Launching

Climate Finance Network

Background

To achieve Indonesia’s national climate finance goals, a total of USD 285 million (IDR 4.000 trillion) is needed to achieve 31,89% reduction on greenhouse gas emissions by 2030. To build climate resilience and adaptation capacity, a total of USD 2,3 to 12,14 billion is needed to reduce the projected GDP decline of 2,87% due to climate impacts. 

At the subnational level, local governments often struggle to track climate spending, access funding, and implement inclusive, low-carbon development strategies due to limited capacity and tools.  

The Climate Finance Network (CFN) is one of UNDP’s key interventions on climate change, particularly climate finance, and operates across 17 countries in Asia-Pacific, including Indonesia. In Indonesia, CFN works with the Ministry of Finance, technical ministries/agencies, regulators, policymakers, and local governments to promote climate finance innovation and support Indonesia’s commitments under the Paris Agreement. 

In its implementation, CFN Indonesia ensures that government and relevant stakeholders, at the national and sub-national level, can effectively mobilize, manage, and evaluate climate finance—particularly from public funding sources, while ensuring gender mainstreaming in each of its activities. 

Objectives

In Indonesia, CFN focuses on the following priority areas:  

  • Climate-responsive planning and budgeting
  • Access to climate finance sources
  • Gender-responsive and inclusive climate finance
  • Transparent and accountable climate finance

Contribution to Gender Equality and Social Inclusion (GESI)

The impacts and risks of climate change for communities can vary depending on region, generation, social class, type of employment, age, income, and gender. Each group has different levels of exposure, sensitivity, and adaptive capacity to the various impacts of climate change.

The project aims to integrate gender mainstreaming within the context of public climate finance, both at the national and sub-national level, to ensure inclusivity through technical assistance, and capacity building. Efforts of the project include gender mainstreaming within climate budgeting, specifically climate budget tagging. Implementation of gender responsive climate budget tagging itself has been done in over 7 Ministries/Institutions, piloted in 2 provinces. The intervention has also resulted in the development of the gender responsive climate budget tagging technical guidance document that offers quick identification of gender and climate activities and budgets. 

Our Impact

USD 11.8B

in green-aligned project values were identified by Climate Budget Tagging between 2022 and 2025.

USD 2.8B

in regional climate change-related spendings tagged (2022-2023) through Regional Climate Budget Tagging.

USD 5.8B

was mobilized through Green Sukuk issuances from 2022 to 2025, indirectly supported by the project through CBT

2.9 million CO₂e

in greenhouse gas emissions were reduced and 865,000 households benefited from improved wastewater management through the project's contributions, under the Green Sukuk issuances 2022-2025

USD 333 million

was mobilized in 2023-2025 through Blue Bond issuances, indirectly supported by the project through CBT.

41,000+ hectares

of mangrove forests and more than 2,100 m² of coral reefs rehabilitated through the project's contributions, under the Blue Bonds issuance in 2023.

15 countries

have participated in 3 South-South exchange activities in climate finance, facilitated by the project.

580+ individuals

including 250+ women and 330+ men from various ministries and institutions have received capacity building in national climate budgeting through the project.

630+ participants

from 10+ provinces, regencies, and cities received hands-on capacity building in regional climate budgeting through the project

Publications