February 4-6, 2025 | Kochi – UCLG ASPAC Climate Resilient and Inclusive Cities (CRIC) Project supported by EU invigorated cities in making their climate actions more sustainable through the fourth Panel of Experts and Workshop on Sustainable Financing, held in Kochi, Kerala, India, from February 4 to 6, 2025. Organised in collaboration with the All-India Institute of Local Self-Government (AIILSG), an active member of UCLG ASPAC and a partner of CRIC, this hybrid three-day event brought together more than 70 participants. Attendees included local government leaders, CRIC pilot city representatives, Indian cities, CRIC strategic and implementing partners, and financing institutions. Focusing on strengthening the capacity of cities to access climate finance opportunities, discussions revolved around innovative financing solutions that can help cities achieve climate resilience and inclusiveness.
The event was graced by a long list of distinguished figures including Ms. Hansa Patel, Chief Executive Advisor of AIILSG; Dr. Jairaj Pathak, Director General of AIILSG; Dr. Bernadia Irawati Tjandradewi, Secretary General of UCLG ASPAC; Mr. Thibaut Portevin, Head of Cooperation at the EU Delegation to Indonesia/ASEAN; Shri. M. B. Rajesh, Hon’ble Minister for Local Self Government Department; and Mr. Sunny George’s vote of thanks as AIILSG Regional Director
Expert Insights and Thematic Presentations
Panel discussions that followed, moderated by Mr Pashim Tewari, Technical Director of AIILSG featured key experts, including Dr. Laode Syarief, Executive Director of Kemitraan (2019-2024), who shared experience of Indonesia’s Environment Fund (IEF or Badan Pengelola Dana Lingkungan Hidup/ BPDLH) in managing and channelling sustainable climate finance, such as the Green Climate Funds to support Indonesia’s Civil Society Organisations, thus underscoring the need for stronger finance regulation frameworks s to ensure effective climate fund distribution. Mr. Prih Haryanta, representing BPDLH, outlined Indonesia’s approach to managing environmental finances by highlighting Indonesia’s Endowment Fund, designed to enhance transparency and link environmental initiatives with economic growth. Dr. Ravikant Joshi,Consultant to World Bank, International Finance Corporation (IFC) and Crisil Risk and Infrastructure Advisory, mapped the international finance infrastructure essential for sustainable urban projects and emphasised the need for technical standards, private sector engagement, and robust urban climate frameworks to unlock city-level climate finance potential. Ms. Antara Ray, Director of Climate Resilience at PricewaterhouseCoopers India, highlighted how existing projects can be transformed into climate-positive initiatives through proper technical support and financing.
In the Thematic Presentations session, Mr. Pravin Bhardwaj, a Sustainable Climate Financing Expert of AIILSG, introduced the Node for Sustainable Financing, and discussed the role of municipal bonds, among others in urban climate finance, such as those serviced through tax proceeds and serviced by project revenues, showcasing how such instruments can help cities raise funds for infrastructure projects.
Mr. Sajan P. John, a representative of Kochi Water Metro, presented India’s first integrated, battery-powered water transport system. Funded by the German KfW Development Bank through a soft loan, the project enhances connectivity for island communities while promoting sustainable urban mobility; aiming to reduce CO₂ emissions by 22,800 MT annually for a carbon-neutral future.
The spotlight of the event was the launch of the Report on Sustainable Climate Finance for Indonesian Cities.
Climate Action Plans, Investment Proposals and Collaborative City Pairing
Mr. Alwis Rustam as Executive Director of APEKSI, moderated the session and presentations of CRIC pilot cities showing their climate initiatives and sustainable financing proposals.
Bandar Lampung highlighted river normalisation projects, embankment reinforcement, and the installation of Early Warning Systems (EWS) to address urban flooding risks encapsulated within a USD 2 million its investment for nine rivers. Kupang planned an investment of IDR 249 billion in integrated water resource management, including water supply intensification, drainage networks, and community-managed water points among others to strengthen urban resilience. Gorontalo’s proposal included water and sanitation upgrades, waste management infrastructure, and community capacity-building programmes for a USD 9.4 million investment.
Samarinda introduced the “Samarinda Pintar” IoT-based waste management system requiring USD 16.84 million, leveraging technology for smarter solutions, and a Bus Rapid Transport (BRT) transition. For Pekanbaru, USD 9.65 million was proposed for waste management improvements that include black soldier fly bioconversion in organic waste treatment, waste sorting and recycling, landfill improvements with methane capture that aims for up to 67,520 tonnes CO₂eq of GHG emission reductions, construction of integrated waste processing facilities (TPST) at three locations and community awareness programmes.
Cirebon presented strategy to optimise its recycling centre or Pusat Daur Ulang (PDU)in hopes of reducing up to 2,500 tonnes CO₂eq of GHG emissions annually while empowering low-income communities through job creation of approximately 50 full-time jobs and urban agriculture support, with an estimated cost of USD 236,250. Mataram’s synergistic approach to waste management involves a key project on biodigester installations at the Majeluk Animal Slaughterhouse, processing 700-1000 kg/day of organic waste with an estimated IDR 6 billion investment in total.
For Ternate, plans include enhancing urban resilience through three main clusters of infrastructure, education, and partnerships through key initiatives such as disaster information boards, and evacuation routes. Through its Smart Island Programme, Ternate aims to boost inter-island connectivity for disaster risk reduction.
City pairing sessions were cornerstones of the second day. The first session paired CRIC pilot cities representatives with Indian Peer Cities, including Indore, Delhi, Pimpri-Chinchwad, Thiruvananthapuram, Kochi, Nizampet, and Narsingh to exchange insights through discussions covering project ideas and its climate impact linkages and their SDGs alignment, while considering existing capabilities, technical needs and potential funding schemes for those project ideas.
The second session was a pitching session from CRIC pilot cities representatives, featured Mr. Marvin Lagonera as City Advisor for Southeast Asia and South Asia, GCoM and the City Climate Gap Fund Partnership, and Mr. Prih Haryanta from BPDLH.
Mr. Marvin Lagonera acknowledged Pekanbaru and Cirebon’s strong evidence-based data – highlighting the importance of clear climate evidence in planning. He also emphasised the need for specific technical studies required for project implementation and highlighted Kupang and Gorontalo’s clear climate rationales and scenarios addressing future climate hazards related to waste and sanitation. However, he noted the importance, of among others, cost-benefit analyses to attract multilateral funding, and for Bandar Lampung, he acknowledged the city’s focus on setting up Early Warning Systems (EWS), and encouraged the city to consider applying for Gap Fund support, as such initiatives align with its scope.
Training Session and Final Activities
The second day also featured a training session that explored, among others, key financial instruments and the global and regional climate finance landscape, Indonesia’s available funding sources, and innovative financing mechanisms to support urban resilience such as PPPs.
Key discussions during the session revolved around the practical applications of mechanisms such as municipal bonds, and how better central-local government coordination could improve urban financing. In a Q&A, Ms. Juli Nurdiana, lead author of Samarinda’s Climate Action Plan (CAP), also emphasised bridging the gap between theory and practice in climate finance. Then, Mr. Divyank Singh, CEO of Indore Smart City gave an India perspective of stressing the need for PPP models, engaging the market and seeking expert-reviewed proposals to enhance urban project funding when central funding is limited.
On the last day, participants took part in a tree-planting activity, reaffirming UCLG ASPAC and AIILSG’s commitment to sustainability, as well as a visit to Fort Kochi via the Kochi Water Metro, India’s first electric-powered water transport system, showcasing green mobility and sustainable urban transport in practice.
Looking Forward
Sustainability is essential for the future of local governance and community development. When it comes to well-established finance methods, the true issue is to navigate these opportunities efficiently and provide cities with the competence to meet funding criteria. UCLG ASPAC’s commitment to sustainable programmes is critical in building local capacity, establishing collaborations, and embedding sustainability in all parts of urban development. Through dialogue, sharing best practices, and showcasing regional partnerships in action, this event has laid a strong foundation to empower cities to achieve their climate actions, driving lasting positive impacts in years ahead.
