Indicators to Evaluate the Institutional Effectiveness of National Climate Financing Mechanisms

Abstract

Over the past few decades, tackling climate change has persistently featured in international discussions, with the main issues centring on mobilising adequate global response and effectively coordinating and channelling this response at the sub-national levels. In order to effectively mobilize and harmonize resources to address climate change at country level, the idea of establishing national climate finance institutions (NCFIs) with the duty to mobilise, manage and allocate funds to implement climate change actions has gained prominence among developing countries. This study develops an indicator-based framework to evaluate the institutional effectiveness of the Indonesian Climate Change Trust Fund (ICCTF) as a case study. Building on previous frameworks and principles of climate finance, a total of 21 indicators were identified, these indicators were categorized into five effectiveness components, which are: were identified, and these indicators were categorized into five effectiveness components, which include: legal and regulatory framework, fund mobilization and sustainability, fund management and allocation, monitoring and evaluation, and transparency and accountability. We find that the major and fundamental weakness of the ICCTF is its inability to adequately mobilize funds, while its strength is in management and allocation of available resources. Inclusion of the legal and regulatory framework component, which has been largely absent in previous studies, further enabled us to identify critical legal gaps in the operationalization of the ICCTF. While the current legal foundation of the ICCTF ensures transparency and accountability, it significantly constrains the ICCTFs flexibility and innovative potentials.

Assessing the monetary value of ecosystem services provided by Gaung – Batang Tuaka Peat Hydrological Unit (KHG), Riau Province

“…It can be used to evaluate the impacts of ecosystem change on economic activity, among others (UN et al 2014). There has been an increased number of studies related to ecosystem accounting in Indonesia, to assess the physical and monetary value of ES (Sumarga and Hein 2014;Suwarno et al 2016), to integrate environmental value into the fiscal policy (Nurfatriani et al 2015), to develop indicators for a green financing mechanism (Sheriffdeen et al 2020), to utilize non-timber forest products (Adalina et al 2014), and to use spatial information of ES as the basis for future forest governance and land use strategy (Sumarga and Hein 2014; J o u r n a l P r e -p r o o f al. 2017; Suwarno et al 2018).…”

Climate financing: institutional effectiveness of the national fund on climate change

“…The objective of this study is to examine the institutional effectiveness of the FNMC from 2009 to 2020, by employing these five dimensions, as proposed by Sheriffdeen et al (2020). This is an exploratory study, and it adopted documentary research as the technical data collection method.…”

“…The authors employ the term "institutional effectiveness" to refer to institutional capacity for attracting and managing climate finance appropriately, and to monitor and evaluate impacts. Through an extensive literature review on climate finance frameworks and principles, Sheriffdeen et al (2020), identified 21 indicators, which they categorized into five dimensions:…”

The Impacts of Investment in the Forestry Sector on the Indonesian Economy

“…P. Hmyria et al, 2019). The tremendous economic potential of forest resources can be used as capital in developing the forestry sector (Nurfatriani et al, 2015;Sheriffdeen et al, 2020). However, the performance of the forestry sector in the economy tends to decline (Asosiasi Pengusaha Hutan Indonesia, 2019;Mäkelä, 2017;Zendrato et al, 2020).…”