Knowledge Platform

Overview

The Indonesian economy is composed of many sectors, each with its own challenges and opportunities. This page explores the sectors identified as high priority in Indonesia, with significant mitigation and adaptation potentials, with support by the GCF. In a capacity needs assessment conducted in Indonesia, it was uncovered that the distribution of GCF funding has been unequally distributed between different sectors in the country. Therefore, by understanding the significance of distinct sectors, the GCF funding can be efficiently allocated to fulfil both the country’s needs, as well as national climate goals. To initiate writing a funding proposal to the GCF, with a theme matching any of Indonesia’s priority sectors (Energy, Water, FOLU, Food), this page can be navigated through to find sector-specific information, specific to Indonesia’s needs, and to GCF applications.

The food sector as a strategic area for climate mitigation and adaptation, and a national priority under Indonesia’s new government. Currently, the Ministry of Agriculture is implementing climate-related initiatives regarding food security as part of its strategic plan. These initiatives focus on maintaining national food resilience and sovereignty while ensuring the sustainability of agricultural resources. They align with GCF priorities, especially the promotion of climate-resilient agriculture, making them strong candidates for support under future GCF-funded programs or project proposals.

The first step to begin preparing for a project’s funding proposal, is determining whether the project proponents have sufficient knowledge, resources, and tools at disposal. An eligibility survey tool has been developed in the form of a self-assessment questionnaire that can be taken on the following page: Link. The survey includes information on the priority sectors in Indonesia, which include the food sector.

Sector Expertise

For a successful funding proposal, appropriate professional experience in the food sector of the underlying technologies and governance in the food sector must be included. To strengthen the proposal and increase chances of succeeding in obtaining funding from the GCF, as well as to be able to answer technical questions as they arise, assistance and support from experts in the field of project are needed. A potential pool of experts that may support your proposal is provided in form of a Knowledge Expert Pool at GCF Knowledge Platform on the Indonesian NDA website. By searching for certain expertise (e.g. food), experts with the respective expertise can be identified. Identifies experts can be directly contacted via the platform: Link

Sector specific considerations for applying to GCF

Alignment to sector specific aspects, policies and regulations

In the context of climate change, the complexity of the food sector requires comprehensive collaboration among various stakeholders across multiple sectors. It is essential to align these efforts with climate change-related documents to effectively contribute to achieving the Nationally Determined Contributions (NDC) and other climate-related objectives. Under the current direction of government policy., food security has been prioritized in Indonesia's development agenda. As outlined in the National Mid-Term Development Plan for 2025-2029, food security is included in Mission 2, which aims to strengthen the national defense and security system while promoting self-reliance in areas such as food, energy, water, the Islamic economy, the digital economy, the green economy, and the blue economy. Therefore, food-related projects within the climate change framework must be aligned with the development plan to ensure their integration into the broader development strategy. Overall, the relevant documents include, but are not limited to, the following:

The intersection of food and climate change has a direct relevance with multiple Indonesian ministries, which are as follow but not limited to these:

Indonesia's NDC has prioritized food as one of the three key areas of resilience in the Climate Change Adaptation Road Map. The key program to achieve this objective is the promotion of sustainable agriculture and plantations. This initiative focuses on integrating climate change adaptation strategies into the agricultural sector and developing and implementing climate-adaptive technologies to ensure the sustainable production of agricultural crops and plantations. By enhancing food security, this effort will also enhance Indonesia's resilience to climate change.

Concept and Proposal development

Indonesian GCF priorities are listed in the CPD of Indonesia (find on: Link),and they fall in-line with Indonesia’s national priority to strengthen food security. Indonesia outlines the climate-related strategies on the food sector through several focus areas, including: maintaining national food resilience and sovereignty, climate-smart agriculture to maintain food production and GHG mitigation, local food diversification, and pest control. For more information on the GCF’s focus areas and investment framework, the practical guide can be reviewed on: Link. In the practical guide, the detailed steps needed to prepare and submit a concept note and funding proposal are included. Additionally, Indonesia-specific GCF investment criteria can be found in the CPD (see pages 48-50).

Food Sector: Specific guidance by the GCF

The GCF has published sector-specific documents that draw out pathways leading to transformative change within these sectors, with some of these sectors falling under the scope of food. By familiarising oneself with the priorities and the focus areas of the GCF, the project’s alignment with the GCF’s climate goals is ensured, and the project work is aligned with the paradigm shift pathways for transformational contributions to both national and international climate ambitions. Additionally, barriers expected to hinder the progress in each of the listed sectors are presented in the guides, which can help to better understand and anticipate the challenges possibly awaiting as project development progresses.

The documents as published by GCF can be reviewed for the detailed actions to bring the country onto each of the paradigm shift pathways (link). The following table lists out some of the potential barriers from the sectors related to food, as relevant to the Indonesian context.

	Paradigm shifting pathways	Barriers
Low emission food system	Low emission practices in agriculture Transformative move towards solutions that decouple agricultural production from land use changes causing deforestation and peatland degradation Reduce GHG emissions from livestock production The use of low emission agricultural practices aimed at reducing GHG emissions from rice fields and from the use of nitrogen fertilizers	Socio-economic barriers: Low level of education of farmers Lack of knowledge and information on low-emission farming practices Cultural and behavioural resistance to changing food production systems Innovation and technology barriers: Limited access to technology for smallholder farmers Slow adoption of renewable energy in food production, processing, and transport Provision of organic fertilizer for farmers including its impact on product quality Institutional and regulatory barriers: Lack of integrated agricultural development planning for climate resilience
Resilient Agriculture	Development of resilient farming communities Facilitating farmers’ access to risk-sharing tools that mitigate the impact of co-variant climatic shocks and where farmers use agricultural practices that enable them to cope with climatic extreme events. Agricultural communities can be strengthened through capacity building, leading to more sustainable and resilient practices Use of climate smart crop varieties To be classified as climate smart, a crop variety must meet at least one of two criteria: early maturity, and/or tolerance to extreme weather conditions such as drought, flooding, or frost. Proposals should include a comparative analysis showing extension of use and performances of varieties normally used by farmers in the intervention area and of the climate resilient varieties proposed. Crop insurance Option to leverage co-funding from purpose-built capital for the development of insurance products. GCF financial support could be used for de-risking.	Economic and financial barriers: Insufficient investment in innovative, climate-resilient practices Lack of incentives or subsidies for farmers Limited budget for sustainable agriculture transition Institutional and regulatory barriers: Lack of integrated agricultural development planning for climate resilience Infrastructure and technical barriers: Lack of knowledge and information on low-emission farming practices Cultural and behavioural resistance to changing food production systems Environmental barriers: Climate change reducing productivity and increasing risks in the food sector Soil degradation, poor water availability, pest outbreaks, etc.
Early warning systems for food sector	Early Warning System for Agriculture Activities include, among others, broadening the range of users of EWS, improve quality, accessibility and integration of data Link EWS to decision making by establishing rules for early response based on contingency plans or parametric triggers	Financial barriers: High cost of the development of EWS, including the operation and maintenance cost Limited funding option for the development of EWS on agriculture Social barriers: Low awareness and understanding on the function on the EWS Resistance to behavioral changes, more trust in traditional methods for climate forecasting Low level of education of farmers Technology barriers: Insufficient technological infrastructure: poor internet connectivity and limited access to modern devices in rural areas. Limited data availability
Increase in water availability and use-efficiency	Promoting resilient agroecology Innovative farming technologies for improved water management Develop water harvesting and efficient irrigation interventions	Economic and financial barriers: Insufficient investment in innovative, climate-resilient farming practices Institutional and regulatory barriers: Lack of integrated agricultural development planning for climate resilience Infrastructure and technical barriers: Lack of knowledge and information on low-emission farming practices Cultural and behavioural resistance to changing food production systems

In the case a project is eligible to use the simple application process (see page 4-6), the sectoral information within the SAP technical guidelines can be used (link). These guides discuss paradigm shifts, but they also list out indicators for impact measurement, and examples.

Food Sector: Specific technical considerations

When developing project concepts for the food sector, some technical aspects should be considered to ensure accurate estimation of the project’s mitigation and adaptation potentials, and to successfully obtain funding. Some of the key aspects to take into consideration are elaborated in the following points:

Data Availability: In the food sector, baseline data on climate baselines and projections should be clear. Data on agricultural value chains, including commodity types, yields, and markets, should be specifically defined. Furthermore, the development of food sector scenarios should align with policies at both national and regional levels, considering contributions to GHG emission reductions. Food sector data also includes the contribution of livestock to the food sector.
Project Boundaries: Defining project boundaries is critical to ensure that only the processes or equipment linked to the specific project are included in the calculations
Technology Performance: Different technologies, especially new ones, can present high levels of uncertainty in terms of performance and risk of failure. Careful assessments should be conducted to clarify potential impacts and risks. In the case of the food sector, proposed projects need to demonstrate a systematic shift towards low-emission food systems and resilient communities. Technology performance should consider the quality or grade of food required by the market, including EWS to mitigate food failure.
Rebound Effects and Leakage: Improvements on the food production may lead to improved efficiency often lead to increased demand, known as rebound effects, which must be considered in the calculations. At the same time, some activities like replacement of equipment can cause emissions to shift elsewhere, or to leak. Therefore, when estimating mitigation potentials, such indirect impacts must be accounted for.
Calculations: In any instance where calculations are performed to provide project-related estimations, clear and detailed explanations of all calculation methods, assumptions, and data used is crucial. Additionally, conservative numbers should be used to avoid overestimations.

GCF Project Examples

The GCF funding has implemented various programs that include initiatives related to food. The linked programs are implemented in multiple countries. These are the following examples:

Acumen Resilient Agriculture Fund (multi-country)

Supporting pioneering and early-growth innovative agribusinesses that enhance the climate resilience of smallholder farmers. The Acumen Resilient Agriculture Fund (ARAF) will improve climate resilience to ensure long-term sustainable increases in agriculture productivity and incomes for smallholder farmers.

Transforming the Indus Basin with climate resilient agriculture and water management (Pakistan)

The project will develop the country’s capacity to use the information it needs to adapt to the impacts of climate change on agriculture and water management by putting in place state-of-the art technology. It will build farmers’ climate resilience through skills, knowledge and technology enhancement activities. It will also create a wider enabling environment for continuous adaptation.

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Food Sector