PROJECT OVERVIEW
Building Climate Resilience and Sustainability in Indonesia
The FINCAPES Project (Flood Impacts, Carbon Pricing, and Ecosystem Sustainability) is a bold and collaborative initiative helping Indonesia respond to some of the defining environmental challenges of our time. Jointly undertaken by the University of Waterloo’s Faculty of Mathematics and Faculty of Environment and funded by the
Government of Canada, FINCAPES is a 5.5-year partnership that brings together researchers, governments, communities, industry, and civil society to advance climate adaptation, mitigation, biodiversity conservation, and sustainable development.
At its heart, FINCAPES is about creating practical solutions that work for both people and the planet. Through a gender-responsive and partnership-driven approach, the project supports Indonesia in building stronger communities, healthier ecosystems, and more resilient economies in the face of climate change.
Three Pathways to Climate Action
FINCAPES focuses on three interconnected areas that are central to Indonesia’s climate future:
Flood Resilience and Climate Adaptation
Climate change is intensifying flooding across Indonesia, threatening homes, livelihoods, infrastructure, and economic stability. FINCAPES is helping communities and decision-makers better understand and prepare for these risks through advanced flood modelling, risk analysis, and climate adaptation planning.
By combining scientific research with local knowledge and stakeholder engagement, the project supports the development of targeted adaptation and mitigation strategies designed to strengthen resilience in both rural and urban areas. This work not only helps protect vulnerable populations but also supports governments and businesses in safeguarding critical economic assets and planning for a more climate-resilient future.
Climate Finance and Carbon Pricing
Addressing climate change requires more than environmental action—it also requires innovative financial solutions. Through its climate finance and carbon pricing work, FINCAPES is supporting Indonesia in strengthening the policies and financial mechanisms needed to accelerate the transition to a low-carbon economy.
A major part of this effort includes the establishment of a climate finance policy and research platform that explores opportunities for improving policy frameworks across sectors such as transportation, forestry, and industry. By fostering research, policy dialogue, and innovative financing approaches—including carbon markets and climate finance mechanisms—FINCAPES is helping to unlock pathways toward cleaner growth and sustainable investment.
Nature-based Solutions and Ecosystem Sustainability
Indonesia’s peatlands and mangrove ecosystems are among the most valuable natural assets in the world, playing a critical role in climate regulation, biodiversity conservation, and community livelihoods. FINCAPES supports Indonesia’s efforts to conserve and restore these ecosystems through the application of Nature-based Solutions (NbS).
Working closely with local communities and research partners, including IPB University, the project is advancing restoration approaches that strengthen ecological resilience while supporting sustainable livelihoods. Through the establishment of a dedicated NbS research center and practical field-based innovation, FINCAPES is contributing to ecosystem restoration, carbon sequestration, and long-term environmental sustainability.
A Shared Vision for a Climate-Resilient Future
FINCAPES reflects Indonesia’s ambitions for innovation, sustainability, and climate leadership while strengthening long-term partnerships between Canada and Indonesia. By connecting science, policy, finance, and community knowledge, the project creates opportunities for meaningful collaboration and locally grounded solutions.
FINCAPES and Canada’s Indo-Pacific Strategy
Climate change and biodiversity loss are global challenges that require international cooperation and shared responsibility. As part of Canada’s Indo-Pacific Strategy, FINCAPES contributes to a broader vision of supporting historic climate action, biodiversity protection, and sustainable economic development across the region.
The Indo-Pacific is home to rapidly growing economies and accounts for more than half of global greenhouse gas emissions, making regional collaboration essential to achieving global climate goals. Through FINCAPES, Canada and Indonesia are working together to advance clean energy transitions, reduce emissions, protect ecosystems, and promote inclusive, sustainable growth.
More than a research initiative, FINCAPES is a platform for partnership, innovation, and action—demonstrating how international collaboration can help build stronger communities, healthier ecosystems, and a more sustainable future for the Indo-Pacific and beyond.
UWaterloo received a formal response on the FINCAPES proposal from Global Affairs Canada on November 16, 2022. The FINCAPES project can now be found on the Global Affairs Canada project profiles listing.