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Vol. 4 No. 2 (2020): NOVEMBER

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Indicators to Evaluate the Institutional Effectiveness of National Climate Financing Mechanisms

https://doi.org/10.24259/fs.v4i2.10309
Muhammad Sheriffdeen
IPB University, Indonesia and University of Ilorin, Nigeria
http://orcid.org/0000-0002-9197-1771
Dodik Ridho Nurrochmat
IPB University
http://orcid.org/0000-0002-4876-8612
Perdinan Perdinan
IPB University
Monica Di Gregorio
University of Leeds, Leeds
http://orcid.org/0000-0003-2545-217X

Corresponding Author(s) : Dodik Ridho Nurrochmat

[email protected]

Forest and Society, Vol. 4 No. 2 (2020): NOVEMBER

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.

Keywords

Climate governance policy trust funds finance readiness ICCTF
Sheriffdeen, M., Nurrochmat, D. R., Perdinan, P., & Di Gregorio, M. . (2020). Indicators to Evaluate the Institutional Effectiveness of National Climate Financing Mechanisms. Forest and Society, 4(2), 358-378. https://doi.org/10.24259/fs.v4i2.10309
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Author Biographies

Muhammad Sheriffdeen, IPB University, Indonesia and University of Ilorin, Nigeria
Graduate Program of Natural Resource and Environmental Management, IPB University Bogor, West Java, Indonesia and Department of Geography and Environmental Management, University of Ilorin, Ilorin Nigeria
Dodik Ridho Nurrochmat, IPB University
Department of Forest Management, Faculty of Forestry and Environment, IPB University Bogor, West Java, Indonesia
Perdinan Perdinan, IPB University
Department of Geophysics and Meteorology, Faculty of Mathematics and Natural Sciences, IPB University Bogor, West Java, Indonesia
Monica Di Gregorio, University of Leeds, Leeds
Sustainability Research Institute, School of Earth and Environment, University of Leeds
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