Strengthening the Capacity of Institutions in Indonesia to comply with the Transparency Requirements of the Paris Agreement (CBIT) To strengthen Indonesia's technical and institutional capacity, to meet the Paris Agreement on Climate Change Enhanced Transparency Framework (ETF) requirements when implementing priority actions for achieving its Nationally Determined Contributions (NDC) and its goals related to low carbon emission development Note: Disbursement data provided is cumulative and covers disbursement made by the project Agency. This project will improve the quality of benefits and services for individuals and groups who support marginalized groups. Through capacity building undertaken for stakeholders, the project is expected to indirectly enhance the fulfillment of community rights in programs related to climate change. Also, this capacity-building project is expected to improve various climate transparency programs. As a result, it can improve the efficiency of policymaking in selected sectors, increase the participation of marginalized groups in the decision-making process related to climate change, and fulfillment of people’s fundamental rights to a livable environment.    Improvement of data collection of peatland fire and other LULUCF sectors deterioration may also create socioeconomic benefits at local levels on top of the benefits of more precise GHG emissions and better climate action.    The project will support the achievement of global environment benefits or adaptation benefits through implementation of its 3 components:    Component 1: National Institutions Strengthening for Climate Transparency  This component will help strengthen the capacities of national and local institutions and stakeholders in managing properly transparency and MRV systems, so that Indonesia has the proper political and institutional structures in place. It will improve knowledge on what MRV arrangements, and the ETF are, highlight in particular the benefits it can provide at the national and local level, in terms for example of improved governance and by supporting results-based payments. This awareness exercise will be provided to a broad range of stakeholders, from ministerial staff to policy makers, civil society, academia and the private sector. Further, a clear explanation of roles will be realized in order to clarify what each role in the transparency systems entails and how those are related to each other’s, thus strengthening the institutional arrangements dealing with climate change and climate transparency.  It will elaborate, validate and adopt a national long-term strategy on climate transparency, with the objective of supporting Indonesia in switching away from a project-based approach to MRV toward a full institutionalization of the ETF. By defining long-term and mid-term goals, key milestones, roles and responsibilities – all of which, as a state policy, should not be impacted by change of governments and authorities- Indonesia will be able to count with the proper policies and legal framework to support its transparency actions over the next decades.  The project is expected to strengthen the NDC implementation strategy that consists of (1) ownership and commitment development, (2) capacity development, (3) enabling environment, (4) communication network and framework development, (5) One GHG Data Policy, (6) Intervention programme, planning, and policy development, (7) NDC Implementation Guidelines development, (8) NDC implementation, and (9) NDC review and monitoring.  Under Outcome 1.1, the project will establish Indonesia’s transparency mechanism, which will be technically in charge of managing national communications, biennial update reports and more in general of every component of the MRV/enhanced transparency framework in the country. This mechanism, built on existing institutions and key part of the newly defined climate institutional arrangements, will support the preparation of greenhouse gas inventories as well as well as the proper tracking of NDCs and will gradually be staffed with government experts and increasingly funded by the national budget.  The proposed inter-ministerial coordination mechanism will have a dual role: on one side, it will support the coordination and communication among transparency actors thus supporting quickly and efficiently the requests originating by the transparency mechanism/unit. On the other side, it will provide strategic advice and orientation to the transparency mechanism itself as well as to policy makers in order to support the implementation of sound and innovative climate transparency policies. The National Institutions for Climate Transparency will be established through a ministerial decree. The framework will provide tools for data and information management (developed by the MOEF). Meanwhile, the transparency mechanism will develop and regulate inter-ministerial and private sector collaboration to increase data and information quality.  The mechanism of coordination is indirectly meant to include the participation of a broad range of stakeholders, including those from academia, civil society, and different ministries.  Within the context of this component, the project will not only capacitate government agencies but also non-governmental stakeholders (private sector, etc.) to establish a long-term strategy linked to the existing mechanism.  The project will also work with regional networks, conduct regular monitoring, and undertake public awareness to assure strengthened institutional arrangements for climate transparency are in place.  Under Outcome 1.2, the will work with government institutions and non-governmental stakeholders to establish long-term strategy and access to financial resources, capacity building and technology transfer through the development of: (1) a detailed gap analysis on gender equality, (2) a long-term strategy on the access to financial resources, capacity building and and technology transfer, and (3) knowledge sharing.  Recently, international agreements on Climate Change have offered the provision of various means of support through new financial resources, capacity building activities, and transfer of technology. In the meantime, it is unfortunate that local government agencies and non-governmental stakeholders in the country, are not well informed about the availability of such support. Therefore, it is important to introduce/ promote the availability of a broad range of support (including the information on ways to access the support) to the relevant stakeholders.  Considering the vastness of Indonesia’s territory, it is important to develop strategic activities to facilitate the access of stakeholders to support for climate-change related activities, such as a matchmaking tool or a platform with guidance and linkages to available support.  In line with the transparency mechanism, the tools or platform would also help Indonesia to identify on financial, technology transfer and capacity-building support needed and received, to ensure a better quality of report and a smooth engagement with the information of support provided from developed countries.  Therefore this project will work with government institutions and nonparty stakeholders to establish long-term strategy and access to financial resources, capacity building and technology transfer through the development of: (1) gap analysis on gender equality, (2) a long-term strategy on the access to financial resources, capacity building and and technology transfer, and (3) knowledge sharing.  Component 2: The Development and Establishment of Robust Systems to Measure, Report and Verify (MRV) Emissions in compliance with the Paris Agreement  The outcome of this component will aim at strengthened GHG inventory mechanism and domestic MRV system and designed domestic MRV system capable of tracking and exchanging data on GHG emissions. It will facilitate relevant agencies to calculate GHG inventories using the established guidelines, especially the IPCC 2006 guidelines as well as support the development of a proper time series.  It will focus on the development of proper activity data and emission factors, with a particular attention on the most important sectors in terms of emissions (LULUCF sector and other related sectors (energy, IPPU), as Indonesia has so far only used -for example- IPCC defaults data, which do not describe appropriately national conditions and thus increase uncertainty over national emissions.  Improvement plan on LULUCF sector is to include these following activities: (a) Improve emission factor on peatland fire; (b) Activity data availability, especially land cover change analysis, can be improved into 1 (one) year earlier; and (c) Peatland decomposition calculation, carbon stock determination must be harmonized with the Forest Reference Emission Level (FREL). For the sector of energy, especially for the sub sector of transportation, the GHG emission is disaggregated into Civil Aviation, Land Transportation (Road Transportation and Railway), and Water Borne Navigation. In this sub-sector of transportation, fuel combustion data for land transportation cannot be disaggregated into land and railway (train) transportation. For the sector of Industrial Process and Product Use (IPPU), the improvement on the estimation of GHG calculation is based on the real production data or manufacturers’ data report directly by the industry to the Ministry of Industry through SIINAS system https://siinas.kemenperin.go.id/ This system has been applied to the industries of cement, ammonia, urea fertilizer, iron and steel, and chemicals. It is expected that other industries will be able to follow to minimize assumption-based data to measure the emissions.  It will support the development of a QA/QC protocol, up to now missing, which will allow Indonesia to correct uncertainties and mistakes at the national level, before inventories are formally submitted to the Convention. This output will thus help the Party to avoid submission of incorrect values for GHG inventories as happened in the past.  It will be aimed at supporting Indonesia in its transition toward the use of the 2006 IPCC guidelines and will be focused at training national entities, including academia, with the objective of reducing significantly the use of external consultants in future climate reports. This is particularly important as up to now there are very limited human capacities in the elaboration of GHG inventories.  It will support the establishment of data management sharing protocols, with the goal of improving data exchange, communication and coordination among different public and private institutions, thus creating the basis for better data management.  Under the component, the project will strengthen GoI to improve data collection as well as assist in the design of an online MRV platform, with the objective of improving the stocking and reporting of GHG data, a key piece instrumental to establishing a national MRV system.  The component will support GoI in designing sectorial interfaces for the MRV system in order to engage further public and private institutions--together with outputs under Component 1--in collecting and entering data directly into the MRV system. Under this component, the project will strengthen domestic MRV system through piloting MRV systems in selected areas among the regions of Ministry of Environment and Forestry (KLHK), i.e. Sumatera, Java-Kalimantan, Bali-Nusa Tenggara, and Sumapapua (Sulawesi, Maluku and Papua) in coordination with relevant parties at national and sub-national agencies. The project will select one or two pilot area(s) on each environment development regions, so there will be 5 to 10 pilot provinces to be implementing the MRV system. Regular workshops will be conducted both nationally and regionally to bridge consultations and sharing experience between stakeholder on the national level as well as provincial level.  Methodology Panel has been formed to support the implementation of MRV consisting of experts from universities, research institutions and sectoral ministries. The function of the Panel is to identify, analyze, and asses methodologies developed by parties to measure the emission reduction and also to formulate recommendations for policy makers in making and planning climate action programs. The panel was established based on MoEF Regulation No.22/PPI/IGAS/PPI.2/6/2017.  Component 3: Strengthened NDC Implementation and Tracking Progress  Under this component, the project will support the re-assessment of information reported in the NDC, with a focus on the assumptions and methodologies used for establishing the business as usual scenario for 2030 and the low carbon scenario. It will incorporate data provided by the most recent GHG inventory (2017) elaborated under the BUR. The project will also review the methodological approaches previously used with the goal of improving the estimates generated for both scenarios and achieving more robust estimates without backpedaling on the ambitious commitments presented at COP 21.  Activities under this component will also address the gaps flagged in the NDC regarding data from certain sectors. Regarding the LULUCF sector and other related sectors (energy, IPPU), Indonesia’s NDC stated that “Emissions from this important sector in Indonesia will need to be analyzed more precise by 2020 in order to be integrated into the overall objective.” While the CBIT will not specifically be directed at improving information on land use, it will work closely with other initiatives (such as the REDD + national programme and future BUR/NC programmes) in order to guarantee that this newly elaborated information will feed in into the revised NDC.  This component will also aim at elaborating a new methodology and tools, to be designed by key national stakeholders, that will allow Indonesia to properly keep track of its progress in the implementation of its NDC. Improved tracking will allow the country to provide proper accounting of its mitigation and adaptation efforts and to provide useful and correct inputs to the global stocktakes under the Enhanced Transparency Framework established by the Paris Agreement.  Indonesia will use CBIT support to “elevate” the technically sound methodology as described under the previous output into a national climate policy recognized and implemented by all ministries, the private sector and civil society, thus further strengthening the institutional arrangements already supported by relevant outcome(s). This output will ensure that NDC accounting efforts will be applied at all levels, thus increasing the validity of the data to be reported in the future by the Party.  Finally, Indonesia believes strongly on the value of peer to peer support in the South-East Asian region and is willing both to provide expertise to others as well as to learn their lessons learnt to make its own transparency framework as effective as possible, also with the support of the UNDP/FAO and its MRV/Transparency South-East Asian network. Output 3.5 will cover different sort of exchanges, both in person and virtual. It will facilitate knowledge exchanges and lessons learnt also outside the region, by being actively engaged in the CBIT global coordination platform and by providing feedbacks on inter alia project implementation, barriers, lessons learnt, information which will be made available virtually through the platform to a wide range of stakeholders around the world.