Indonesia receives $300m climate change mitigation loan from Japan International Cooperation Agency

19 July 2010

The bilateral development agency Japan International Cooperation Agency (JICA) has signed a $307m loan with Indonesia to fund its ambitious climate change mitigation agenda.

This loan, titled Climate Change Programme Loan III, is to provide assistance for country-wide policy and institutional reforms aimed at improving Indonesia’s readiness to the threat of climate change.

This Japanese ODA loan, formed by interaction between the governments in Japan and Indonesia, is to help fund a national response to climate change, focusing on the development of several clear areas of policy.

A presidential decree will be formed by Indonesia to implement the national action plan aiming at reducing carbon emissions by 26 per cent by 2020. In addition, a finance scheme will be established to implement a number of climate change measures and create a national greenhouse gas inventory in order to track progress.

To help halt climate change, the loan will strengthen structural tools such as forest conservation and management, renewable energy development and the promotion of energy efficiency.

The loan will also give Indonesia the means to adapt to a low-carbon society by strengthening the management of its water resources and improving its climate forecasting models, JICA said.

The grant, now in its third phase, was the first policy loan on climate change ever granted in the world when its first phase was provided in 2008.

Indonesia is currently the fourth largest emitter of greenhouse gas after China, the US and Brazil.

The French development agency has provided co-financing since phase one, and the World Bank is providing funding in phase three.

Copyright © 2010 NewNet

Tags: energy, energy efficiency, renewable energy

This story was published on Monday, July 19th, 2010 at 5:19 pm and is filed under Asia, deals, energy efficiency. You can follow any responses to article entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

Leave a Reply