Well into the second decade of the 21st century, the effects of climate change are being felt across the world. Economic activity and population growth have resulted in unprecedented concentrations of greenhouse gases in the atmosphere and led to a warming of the Earth's temperature. Sea level is rising, ocean's acidity is increasing, and the changing climate is affecting natural and human systems on all continents. In 2009, Indonesia became the first developing country to announce a cut of greenhouse gas emissions. The biggest archipelago of the world realized its vulnerability to climate change and committed to reduce emissions by 26% by 2020 or 41% with international support. With almost 250 million people, Indonesia is the world's fourth most populous nation and one of the world's largest emitters of greenhouse gases. Converting the 16th largest economy of the world to clean technologies will be no easy task. Emissions are expected to increase further due to a growing population and an expanding economy highly dependent on fossil fuels. greenhouse industry, transport, housing and commerce sectors will require profound changes to become energy efficient. Since 2009, many policies, action plans and commitments have been made. But how much is the government of Indonesia really spending on climate change mitigation? Is the money being spent in activities that can achieve the country's ambitious emissions reduction targets? With that purpose, the Indonesian Finance Ministry launched a budget tagging system to track financial flows to activities that mitigate climate change with the support of UNDP and UNEP. The Ministry of Finance aims at understanding whether activities that are currently being funded can achieve the emissions reduction targets. The system will put a tag and later will rate activities based on their contribution to reduce emissions. It is a way to identify how much budget has been allocated and how it has been spent. Whether it contributed to reach the country's emission reduction target through development of financial incentives to produce policies or for practical activities like reforestation, renewable energy, eco-efficient transportation, energy-efficient buildings, waste-to-energy or restoration of degraded land. Indonesia is the first country of the world to have adopted such a tracking system. Seven ministries are legally required to put it in place by 2015. Spending the government's budget wisely and setting up the right incentives and disincentives is expected to encourage investors in technologies that reduce greenhouse gas emissions. Investors like Mr. Mohamed Badawi and Mr. Douglas Manorum. Mr. Mohamed Badawi's office is overcrowded with national and international trophies, rewarding his pioneering entrepreneurial career. He proudly explains how he struggled to get his business started when he was only 27 and nobody believed in him. Today, he manages a plastic recycling network that operates from Papua New Guinea to Sumatra. He has supported entrepreneurs all over Indonesia to establish plastic recycling depots and equip them with his personally designed plastic grinding machine. He buys all their plastic pellets production and sells it to China. There are some people who are still working on plastic. But we will explore more about it. Plastic recycling reduces greenhouse gas emissions because producing new plastic from scratch would consume more energy than just recycling plastic. Mohamed started his factory with two employees. Today, he employs 50 people in Jakarta and his plastic recycling network has created jobs for thousands of people. And the most common thing is that many people can live here, work here and that is just a contribution for the future. Douglas Manorum is the managing director of TPST Bantar Gabbang, a waste treatment facility that works in Bantar Gabbang, the biggest landfill of Indonesia. The company receives 6,000 tons of waste every day from Jakarta province. They sort it out, convert organic waste into organic fertilizer and convert plastic waste into plastic pellets that can be sold. Decomposing garbage releases methane into the atmosphere and has an impact on climate change 20 times worse than carbon dioxide. Douglas's company collects and treats the methane gas released by waste to produce electricity that is sent to the grid. The plant is generating 10 megawatts of electricity and Douglas hopes to reach 26 megawatts. While projects like Majestic Boana Group or TPST Bantar Gabbang are doing extraordinary work to reduce emissions, it is eventually the government's incentives or disincentives that will allow them to fail or flourish. It is crucial for the government to identify the type of strategic activity that can create a friendly environment for public and private investments to succeed, and the tagging and scoring system can help to do so.