DESCRIPTION
"CIF-ACT’s program aims to support developing countries that are heavily reliant on coal to accelerate the transition away from coal to renewable energy while ensuring a holistic, integrated, socially inclusive and gender-equal transition. The program is structured around three pillars of governance, people and communities, and infrastructure. Indonesia along with South Africa, India and the Philippines was selected as a pilot country under CIF-ACT.
This grant is managed by the World Bank under CIF-ACT’s Component 2.1.b: Just Transition in Coal Regions, which aims to strengthen local capacity for economic diversification and just transition in Indonesia’s coal-dependent areas through upstream investments in three areas: (a) local development planning and infrastructure to fill critical service gaps and create enabling conditions for economic diversification; (b) skills, livelihoods, and entrepreneurship activities to equip local workers, communities, and businesses to thrive in a diversified economy; and (c) community outreach and citizen engagement activities to promote stakeholder dialogue, social risk management, and citizen oversight on the transition process.
In dialogue with the Government of Indonesia, the World Bank has identified the Ombilin project for this component. Along with the planned investment, the grant portion can be used as a top up to planned activities for the component.
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KEY DELIVERABLES
● Governance: the adoption or amendment of policies, regulations, standards or codes and accelerated CFPP retirement roadmaps
● People: access to sustained income for employees of retired CFPPs/coal mines and direct benefits received from social plans economic regeneration activities by the community
● Infrastructure: avoidance of greenhouse gas emissions; mobilization of MDB and commercial co-financing; facilitation of accelerated retirement of CFPPs; reclamation, reforestation, restoration and/or energy savings from CFPP closure and repurposing; increase in installed renewable energy and energy storage capacity"
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| Modality | Financing Type | Financing Source | Financing Intermediary | Amount (Home Currency) | Amount (USD) | Part of JETP Pledge |
|---|---|---|---|---|---|---|
| Modality A | Grant / TA | CIF Infusion (ACT) | World Bank | USD 5,000,000 | USD 5,000,000 | Yes |