Climate Change Adaptation and Social Inclusion Screening and Quantification Tool for PT Indonesia Infrastructure Finance

Indonesia is highly vulnerable to the impacts of climate change, including projected sea-level rises, changing precipitation patterns, intense tropical cyclones, and storm surges. This is largely due to the concentration of urban poor in city peripheries, where infrastructure supply is limited and of low-quality. The government of Indonesia is strongly committed to combating climate change and, as such, has made a number of commitments to strengthen its climate change adaptation and mitigation priorities. As a step towards this, Indonesia ratified the Paris Agreement in 2016 and submitted its nationally determined contributions (NDCs). In this context it becomes imperative to catalyze infrastructure investments that foster E&S sustainability, with a focus on gender protection and equality, particularly in, vulnerable communities. To help further the government’s strategic priorities, PT Indonesia Infrastructure Finance (IIF), a leading non-bank private infrastructure financing institution, is committed to strengthening the application of international best practices in climate risk and social inclusion standard. The objective of this assignment was to (i) strengthen IIF’s capacity to develop a strategy and methodology to screen climate-smart projects and quantify the impacts and benefits of the application of climate risk, gender, and other social inclusion considerations such as Cultural Heritage, Biodiversity, Ecosystem Services, and Indigenous peoples from a project perspective and (ii) help support and advance Indonesia’s sustainability and climate commitments.