The COP (Conference of the Parties) is the highest decision-making body of the Convention. A key function of the COP is to review the national communications and emission inventories submitted by Parties. This year, the 28th COP was held in Dubai, United Arab Emirates, for 13 days, beginning on November 30 and ending on December 12.
The COP 28 action agenda focuses on four key issues:
- Accelerating a just and orderly transition
- Fixing climate finance
- Focus on nature, lives and livelihoods
- Promoting inclusiveness for all.
The President of the Republic of Indonesia, Joko Widodo, said that Indonesia needs to take and has taken “systematic and innovative steps” to achieve its goal of becoming a net carbon sink in forestry and other sectors by 2030. According to the statement, Indonesia has set an example by “combining economic and social considerations and developing a partnership for sustainable forest management”.
Last year, Indonesia enacted a new law on intergovernmental fiscal relations between the central and subnational levels, known as the HKPD law. One of the indicators that Indonesia uses for regional characteristics is the forest cover index.
According to the formula applied in 2023, 1 billion US dollars (or 17 trillion rupiah) of these fiscal transfers to subnational jurisdictions can be attributed to the presence of their forest cover. Of this amount, US$823 million would be added to local governments, i.e., districts and municipalities, based on their forest cover.
Mr. Fathan Subchi, Vice-Chairman of Commission XI, said in his speech at the Indonesian Pavilion Forum, “We can add that the partnership should involve sub-national jurisdictions in protecting their forests. I would like to emphasize that the benefits of protecting their forests go beyond the boundaries of their provinces, districts or municipalities. In doing so, they contribute to the protection of global public goods and become nature-based solutions from Indonesia to the world”.
CCSF UI accompanied honorable members of the national parliament to COP 28. As a research center focused on climate and sustainable finance, our mission and goals are linked to the COP. We focus on finance and related outcomes to address nature and climate issues. We are also responding to the urgent need to address global challenges and design finance policies that really work for Indonesia.
This is not the first time we have participated in the UN Climate Change Conference to convey the main substances that align with our core competencies in climate and sustainability finance.
