Jakarta – Indonesia can now formally apply for funding under the global Loss and Damage mechanism following key decisions at the latest UN climate summit, a senior official from the Ministry of Environment said.
Franky Zamzani, Director of Climate Change Adaptation at the Ministry of Environment, said on Friday, February 13, at the “Dissemination of UNFCCC COP30 Adaptation and Loss and Damage Results” event organised by Mercy Corps Indonesia and GIZ.
He said the new funding window offers a concrete opportunity for Indonesia to address the increasing impacts of extreme weather events. COP30 completed the review of the Warsaw International Mechanism (WIM), aligning it with newer institutions established in recent years, including the Santiago Network and the Fund for Responding to Loss and Damage (FRLD).
At COP30, the FRLD launched a new funding access pilot, known as the Barbados Implementation Mechanism (BIM). Under this mechanism, all developing countries are eligible to access financial support for climate-related loss and damage.
“This is a translation of the country-driven principle,” Franky said. “Access to FRLD funding must receive endorsement from the National Designated Authority of each country.”
In Indonesia, the National Designated Authority (NDA) function is shared among the Ministry of Environment—particularly the Deputy for Climate Change and Carbon Governance—and the Ministry of Finance, including its Directorate of Sustainable Finance.
Franky explained that BIM applies a direct access model, meaning funding proposals must be submitted through accredited national entities. Institutions already accredited by global climate funds automatically qualify as implementing entities under the FRLD mechanism.
In Indonesia, Kemitraan (Partnership for Governance Reform) and PT Sarana Multi Infrastruktur (PT SMI), which the Green Climate Fund accredits, are among the institutions positioned to serve as implementing entities.
“With the NDA already established and accredited institutions in place, Indonesia now has the opportunity to access FRLD funding through the BIM mechanism,” Franky said.
The funding is designed to respond to rapid-onset climate events, such as extreme weather disasters that cause significant damage and economic loss. Franky cited recent disasters in Aceh and West Sumatra as examples of loss and damage linked to extreme weather anomalies.
He noted that unusual climate phenomena—such as rare cyclonic activity affecting areas near the equator—have led to rainfall far above normal levels, triggering severe floods. While multiple drivers contribute to worsening impacts, the pattern underscores Indonesia’s growing vulnerability to climate-related loss and damage.
Beyond financial access, Indonesia can also utilise the Santiago Network for technical assistance to support the preparation and implementation of loss and damage responses.
Franky called on government agencies, development partners, and civil society organisations to collaborate in preparing proposals aligned with the objectives of the Loss and Damage framework.
“As the National Designated Authority, we are ready to assist and support stakeholders,” he said, adding that Indonesia also needs to update its WIM contact point to strengthen coordination with the Santiago Network. (nsh)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)
