Indonesia starts plans for climate fund

On Friday (December 17) in Manila, Indonesia, the Senate Climate Change Committee sought the aid of government finance agencies to find fund sources for the People's Survival Fund to help with climate change mitigation.

According to Senator Loren Legarda, Chairperson of the committee, the fund would assist climate change action plans of local government units (LGUs) and provide financial assistance for priority adaptation projects by the Climate Change Commission (CCC).

Legarda made the request during a public hearing by her committee on Senate Bill 2558 (People's Survival Fund) authored by Senate President Juan Ponce Enrile.

During the public hearing, Department of Finance (DoF) officials said the proposed sharing of current government funds with the People's Survival Fund could pose a threat to other programmes, currently being funded by other sources.

The Enrile bill proposed that the Survival Fund should be funded using national budget. The bill also says that 10 per cent of funds should come from cash dividends declared by all government-owned and controlled corporations (GOCCs).

Legarda said: "It has been over a year since the Climate Change Act (RA 9729) was enacted, and we recognise that this measure can be further enhanced in terms of the structure of the commission and our climate finance policy. I am glad that Senate President Enrile filed Senate Bill 2558."

"This proposed legislation establishes a framework and mechanism for the proper utilisation and management of climate funds.

It creates a People's Survival Fund that would finance climate adaptation programmes and projects based on the national strategic framework. This law would be toothless without the adequate funding, and so I ask the DoF and the DBM to help us find new sources of funds for this measure," Legarda added.

Legarda explained that the amount of IRP50 million from the national budget, along with funds from other sources stated in the bill that would constitute the People's Survival Fund, would not be enough to finance climate change adaptation measures. She noted that the World Bank assessment of damages from the tropical storms in 2001 has already cost IRP227-billion.

Legarda asked those present, during the hearing, to come up with a comprehensive discussion of their position on the details of the bill, specifically on issues regarding the source of fund. She wanted to know, who could access the fund, what the figure of the initial funding would be, the structure of the People's Survival Fund Board, and the necessary safeguards needed to ensure the proper use of funds and efficient implementation of the law.

Author: Charity Knight | Climate Action

Image: paulinebalba | flickr