Efektivitas kelembagaan untuk mendanai adaptasi perubahan iklim: pelajaran dari Dana Perwalian Perubahan Iklim Indonesia (ICCTF).

Abstract

Climate change is regarded as a key environment and development challenge of the 21st century. Affecting every continent, climate change impacts threaten to undo progress made toward poverty reduction and the achievement of the Millennium Development Goals. Over the past few decades, tackling climate change has featured ceaselessly in international discussions, with the main issues centering on mobilizing adequate global response and how to effectively align and coordinate this global response at the sub national level. These require not just huge and prudent utilization of financial resources but also highly efficient national institutions and systems especially in developing countries where underlying development issues exist. In response, the idea of establishing national climate finance institutions (NCFIs) with the capacity to mobilize, manage and allocate funds to implement climate change actions is gaining prominence among developing countries, hence necessitating the need to ensure that these institutions are capable of carrying out their primary functions. This objectives of this study were to first, examine the operationalization of the Indonesian climate change trust fund (ICCTF), identify and develop an indicator-based framework to evaluate the effectiveness of national climate finance institutions (NCFIs), then evaluate the institutional effectiveness of the Indonesian climate change trust fund (ICCTF) as a national climate finance institution (NCFI). The data used included both primary and secondary data sourced through questionnaire administration to a group of targeted respondents, as well as data from relevant official documents and academic literature available online. The data was analyzed using both qualitative and quantitative analysis (multi-criteria decision making) techniques adapted from previous studies. A total of 21 indicators were identified and categorized into 5 effectiveness components, which are; Legal and regulatory framework, Fund mobilization and sustainability, Fund management and allocation, Monitoring and evaluation, and Transparency and accountability. Respectively, the five components obtained index scores of 3.705, 3.497, 4.015, 3.668 and 3.727 on a scale of 5. 0 based on multicriteria analysis. This indicates that the major 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 also enabled us to identify critical legal gaps in the operationalization of the ICCTF. It was found that the current legal foundation of the ICCTF ensures transparency and accountability, but significantly constrains the ICCTFs flexibility and innovative potentials.