Environmental Support Programme, phase 1 and 2

After the publication of the Danish Environmental Strategy for Environmental Assistance to Developing Countries 2004-2008, Indonesia and Denmark agreed to initiate an Environmental Sector Programme Support in 2005. The first phase of the Environmental Support Programme (ESP), which was implemented from 2006-2007, was centered around the severe environmental destruction caused by the 2004 Tsunami and the subsequent reoganisation of Indonesia's environmental management priorities. The most important achievements of ESP1 was the restoration of key environmental institutions and safeguarding of the reconstrutionand rehabilitation activities which took place in the affected areas of Indonesa. ESP1 had a budget of 90 million DKK. 

The second phase of the Environmental Support Programme, ESP2, ran from 2008-2012 with a budget of 220 million DKK for three components focused on environment, energy and community driven natural resources management respectively. 

ESP2 adopted the collaborative approach which was formed under ESP1, where joint working groups between key Public Sector Institutions were formed with the aim to develop more strategic frameworks for the application of environmental tools.

In Component 1 this approach was used to engage relevant departments in Ministry of Environment, Ministry of National Development Planning, Ministry of Home Affairs and Ministry of Public Works in improving awareness of and capacity to use environmental tools including Strategic Environmental Assessment (SEA) and Environmental Impact Assessment (EIA/AMDAL) and Economic Instruments (EI).

Component 2 promoted energy conservation in medium- and large-scale industries together with new large private and public buildings. Through establishment of the Energy Efficiency and Conservation Clearing House Indonesia (EECCHI) under Ministry of Energy and Mineral Resources, the ESP2 supported the production of information, norms, standards and capacity to deliver professional services, as well as awareness raising and practical demonstrations with the aim of raising demand for services and facilitate investment.

Component 3 was support to the multi-donor trust fund administered by the World Bank for PNPM (National Programme for Community Empowerment), a national, community driven development programme funded by Government of Indonesia and several donors. ESP2 supported a special ‘green’ fund for implementation of renewable energy and natural resources management projects. Like the rest of PNPM, Green PNPM allocated un-earmarked block grants to sub-districts in Indonesia, specifically Sumatra and Sulawesi, for projects that were prioritised and selected based on inter and intravillage competition.


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