ENVIRONMENTAL FINANCE: A CASE STUDY OF FCPF-CF IN EAST KALIMANTAN

Abstract

This study provides an in-depth examination of the financial processes within the Forest Carbon Partnership Facility's Carbon Fund (FCPF-CF) in East Kalimantan, Indonesia. By conducting a descriptive analysis of existing literature and interviewing key stakeholders, the study identifies the mechanisms involved in sourcing, allocating, and disbursing funds. It also illuminates significant challenges, including the absence of a carbon trading market, governance and accountability issues, dynamic policy changes, reporting requirements, and a lack of local government understanding of the FCPF program. These findings enrich the literature on environmental conservation initiatives by offering insights into the adaptations of financial mechanisms in FCPF-CF East Kalimantan. The study's outcomes provide valuable lessons for the development and implementation of similar programs worldwide, contributing to the broader field of environmental finance.