The Concept Note for the Climate Finance Facility to Support Energy Transition in Indonesia has received endorsement from the GCF CIC#2. The subsequent step involves developing a detailed Funding Proposal (FP) package, which is essential for securing the necessary financial and technical support to implement the programme effectively.

To develop a comprehensive FP package, several critical components must be addressed. Firstly, baseline assessment and preliminary project conceptualisation and screening are required to establish a thorough understanding of the current energy landscape, including the specific needs and conditions of the targeted areas. This involves a policy, regulatory, and institutional assessment for small-scale renewable energy (RE) projects for rural and 3T communities, assessment of financing options (including innovative financing) available and being planned for energy transition and RE projects, assessment of investment viability and risk issues for RE projects, and an assessment of investment appetite of domestic and international project developers and private investors for energy transition and RE projects. This involves conducting climate change risk and vulnerability assessments to identify the risks and challenges faced by the communities. Additionally, a GHG emission reduction potential analysis will be necessary to quantify the environmental benefits of the proposed RE projects. Financial and economic analyses are also crucial to ensure that the projects are financially viable and can attract the necessary investments. Stakeholder engagements will help build consensus and support among key players, including local communities, government agencies, and private sector partners. Engagement with international developers and investors through market sounding and investor consultations will help understand their investment considerations to inform project structures and financing mix of projects being supported through the Climate Finance Facility. Furthermore, risk assessments, environmental and social safeguards, and gender analyses are vital to ensure that the programme is sustainable, inclusive, and minimizes any potential negative impacts.