Climate Finance and Carbon Pricing

Establishing a Center of Excellence for Climate Finance Policy Research, Training, and Education

To support and strengthen Indonesia’s climate finance policy framework, FINCAPES is collaborating with Indonesian partners to establish a dedicated center of excellence for climate finance policy research, training, and education. This initiative focuses on advancing climate finance policy, carbon financing mechanisms, and clean energy transition strategies that are critical to Indonesia’s transition toward a low-carbon economy.

At the center of this effort is RECLICKS, a center of excellence for climate finance policy research, training, and education initiated by the Purnomo Yusgiantoro Center (PYC) and supported by the University of Waterloo through the FINCAPES Project. RECLICKS serves as a collaborative platform that bridges Indonesian and Canadian expertise in energy policy, climate finance, and sustainability research, creating a strong foundation for evidence-based policy development, knowledge exchange, and institutional capacity building.

Working with the Purnomo Yusgiantoro Center (PYC)

The Purnomo Yusgiantoro Center (PYC) is an independent, non-government think tank established in June 2016 and based in Jakarta, Indonesia. PYC promotes independent, systematic, and professional analysis and research in the fields of natural resources and national security. Through policy research and dialogue, the Center provides recommendations and solutions while serving as an important bridge connecting government, academia, industry, and civil society. Through its partnership with FINCAPES and the University of Waterloo, PYC plays a leading role in advancing climate finance research and policy innovation in Indonesia.

Key Activities of RECLICKS and the Climate Finance Center of Excellence

The Climate Finance Center of Excellence focuses on three key activities designed to strengthen Indonesia’s climate finance ecosystem, which include:

Carbon Financing Mechanisms: Researching and developing robust carbon financing strategies, including carbon markets and offsets, to support Indonesia’s low-carbon transition and strengthen climate investment opportunities.

Policy Research and Development: Addressing policy research challenges and knowledge gaps in critical sectors such as transportation, forestry, energy, and key industries through applied and evidence-based research.

Capacity Building and Training: Enhancing the skills and knowledge of policymakers, researchers, students, and industry stakeholders through targeted short courses, workshops, mentorship, and training activities.

Addressing Policy Research Challenges

As Indonesia transitions toward a low-carbon economy, it is essential to address existing policy research challenges and gaps. Through RECLICKS and the Climate Finance Center of Excellence, FINCAPES supports research and policy development in the following priority areas:

Energy: Providing input to develop policies that reduce emissions from the energy sector, promote sustainable energy solutions, and integrate climate finance and carbon financing mechanisms.

Forestry: Supporting sustainable forest management, enhancing carbon sequestration, and developing policies that help prevent deforestation and forest degradation.

Key Industries: Assisting industries in adopting low-carbon technologies and practices while exploring opportunities to integrate carbon markets and climate finance mechanisms into operations and investment planning.

Promoting Collaboration and Innovation

The establishment of RECLICKS and the Climate Finance Center of Excellence will:

Enhance research capabilities by strengthening research capabilities within universities and partner institutions, with a focus on climate finance, carbon markets, and sustainability policy.

Support policy development by providing evidence-based research and policy recommendations that support effective and practical climate finance policies.

Drive sustainable practices by promoting the adoption of sustainable and low-carbon practices across sectors, contributing to Indonesia’s climate commitments and sustainable development goals.