BIOFIN in Indonesia works to transform the institutional and financial contexts of biodiversity financing while promoting national dialogues that capacitate stakeholders to accelerate the easing of their financial needs to achieve the national biodiversity target. Currently, BIOFIN pilot the finance solution at the implementation stage, including Sukuk, a faith-based biodiversity fund, EFT, and result-based budget tracking. Other solutions are being explored for feasibility, biodiversity offset, nature disclosure, etc.
- Country : ARG, BLZ, BRA, BTN, BWA, CHL, CHN, COL, CRI, CUB, ECU, FJI, GEO, GTM, IDN, IND, KAZ, KGZ, KHM, LKA, MDG, MEX, MNG, MOZ, MWI, MYS, NPL, PER, PHL, RWA, SYC, THA, TZA, UGA, VNM, ZAF, ZMB
- Project Sites : In general, BIOFIN projects are carried out at the national level, although some pilot projects have also been carried out, such as: Central Sulawesi: Tuva Village Central Java: Semarang
- Support Area : Biodiversity
- IKI Funding : 40.000.000,00 € (BIOFIN on 2019-2025: US$1.350.000)
- Duration : 01.01.2018 - 31.12.2027
- Implementing Organisation : United Nations Development Programme (UNDP),United Nations Development Programme (UNDP) - Slovakia
Policy Priorities :
Biodiversity Financing
Policy Targets :
– Less than US$143 billion is spent on biodiversity every year globally, this is far below the estimated US$824 billion needed to protect and restore nature. BIOFIN is working to close this gap. BIOFIN is working with governments and the private sector demonstrate how tailored investments and incentives in biodiversity not only protect nature but also create jobs, reduce pandemics, and combat climate change.
1. Unlocking Sukuk for Biodiversity Project Financing
BIOFIN and Bappenas technical unit in creating criteria and indicators for Sukuk allocation regulation, enhancing green project capacity. These finalized criteria cover green energy, climate resilience, sustainable transport, waste management, resource management, and green building, and are incorporated into supplementary technical guidelines for ministerial regulations. In 2024, efforts will expand with the Directorate of Development Financing, ensuring broader integration of these criteria into the institutional framework.
2. Leveraging Faith-based Fund for Biodiversity
This finance solution intends to institutionalize the process of identifying, implementing, and reporting on faith-based funds for biodiversity. BIOFIN collaborating with Bappenas and BAZNAS to start pilot implementation cocoa field school activities in Tuva Village from Mei 2023 to February 2024, with 40 cocoa farmers as participants. In 2024, activities in Tuva village will continue, BIOFIN will discuss furthermore with BAZNAS and Bappenas.
3. Ecological Fiscal Transfer (EFT)
BIOFIN, Bappenas, and the Central Java Government collaborated to establish the implementation of Ecological Fiscal Transfer (EFT). EFT design and criteria were developed, and the criteria outlined in the appendix of Governor Regulation Number 61/2023. In 2024, BIOFIN will continue to monitoring regional governments to implementing biodiversity and environmental activities according to Governor Regulation.
4. Institutionalize Results-based Budget Tracking for Biodiversity Expenditure
The solution aims to migrate biodiversity expenditure assessment from a manual to an online system, promoting its institutionalization into the performance-based budgeting system. BIOFIN and Bappenas collaborated to formulated and develop guidelines for budget tracking for ministries/institutions, and obtaining training to 8 prioritized ministries/institutions for dynamic tagging in 2024.
5. Assessment of the Nature of Financial Disclosure Framework (TNFD)
The TNFD recommendations provide companies and financial institutions of all sizes with a risk management and disclosure framework to identify, assess, manage, and where appropriate, disclosure nature-related issues. BIOFIN will be facilitating development and delivery of training and education activities based on the TNFD recommendations and implementation guidance. This will include Certified Professional Development (CPD) courses – both online and in person training programs in cooperation with local training providers.N65
Website & Social Media
Relevant Links: https://www.international-climate-initiative.com/PROJECT701-1
