Environmental Fund Management Agency - Government Regulation No. 46 of 2017 on Environmental Economic Instruments

In 2019, the Indonesian Government established the Environmental Fund Management Agency. This Agency, which is also known as the Indonesian Environmental Fund, is responsible for mobilizing and managing funding for climate change mitigation and adaptation. Among other responsibilities, the Agency is in charge of administering the Environmental Damage Mitigation and Restoration Fund, which was created by the Indonesian Government to provide funding for environmental restoration and atmospheric protection (under Government Regulation No. 46 of 2017 on Environmental Economic Instruments, Article 26). In addition, pursuant to Regulation No. 21 of 2022 on Guidelines for Carbon Economic Value Implementation, the Agency has the power to issue performance-based payments to business entities for emission reduction activities (Article 28). Notably, entities which receive performance-based payments are subject to monitoring, reporting and verification obligations (see Chapter VI of the Regulation).

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