International Public Finance to Address Climate Change in Indonesia – Lessons for the Future of European Development Cooperation

This policy brief examines international and national climate finance flows in Indonesia and makes recommendations for future European Union (EU) climate finance operations. The Cancun Agreements (2010) state that developed countries should transfer new and additional finance for developing countries to address climate change. This transfer of funds is set to reach $100 billion by 2020 and this raises questions regarding the manner in which this funding will operate. The brief discusses aid effectiveness in relation to climate finance and outlines the key differences that exist between climate finance from aid. It concludes by offering recommendations for future EU climate finance.