Indonesia-UK PACT Call for Proposals: carbon pricing sector

For full details, please consult the Terms of Reference (ToR) and Applicant Handbook linked below.

How much should each project cost? 
This call for proposals aims to select up to two separate projects, one under each thematic area. Each selected project will receive funding for a duration of up to 15 months, with a possibility of extension.

• Theme 1, the maximum funding is up to £450,000.
• Theme 2, the maximum funding is up to £650,000. 

What type of activities are we looking to fund?
We are seeking proposals for projects that strengthen the enabling environment for carbon pricing in Indonesia and help align carbon pricing instruments with the country’s broader climate and development priorities. Building on existing UK PACT collaboration and lessons from Phase I, this call aims to support a focused set of strategic interventions that accelerate readiness for carbon pricing implementation as part of high in, encourage private sector engagement, and foster robust, transparent, and inclusive systems.  

Proposals should be responsive to government priorities, technically sound, and designed to complement ongoing initiatives including other development programmes. While the scope of this call is targeted, applicants are encouraged to demonstrate innovation and collaboration, especially where proposals can help connect regulatory, market, and institutional elements in a coherent way.  

We have identified two key project themes:  

• Theme 1: Regulatory and policy framework- Activities may include drafting or reviewing regulatory instruments, aligning sectoral policies with national targets, and providing technical support for the preparation and implementation of sectoral roadmaps. Capacity building, comparative studies, and thematic workshops may also help inform policy development and improve understanding of technical considerations.  
• Theme 2: Carbon market strategy and infrastructure- Activities may include strengthening registries and MRV systems, supporting the integration of high-integrity principles into policy and regulations, linking carbon markets strategically and operationally to Indonesia’s wider climate policy including the NDC, and analysing options for international linkages of markets or emissions trading schemes. Benchmarking and learning from international experiences, best practices and guidance, may also support planning and design.

Each of these projects has specific expected outputs and interventions. Indonesia-UK PACT welcomes creativity, expansion and additional suggestions from the market that cover the stated interventions as a minimum. Applicants may submit proposals for more than one project, noting that each project is distinct, and that each proposal should address only one project. Each proposal will be assessed independently. 

Projects will be selected through a one-stage open and competitive call.  

How long can each project be? 
Project durations differ, and guidelines are provided within each project’s detailed terms of reference. Typically, projects will run for 15 months.  While we aim for projects to start on 1 October 2025, the exact duration will depend on the actual start date, with funding available through December 2026.

Can a consortium apply? 
Yes, we welcome applications from consortia. As of 2024, organisations registered as for-profit organisations are eligible to be the lead Implementing Partner of a proposal/consortium. However, projects must be delivered on a not-for-profit basis. We encourage consortia to have at least one local partner.

What type of organisations can apply? 
We invite all organisations with relevant experience in delivering technical assistance and capacity-building projects in the carbon pricing sector to register. This could be both international and local think-tanks, consultancies, academic institutions, NGOs, professional associations, or any similar organisations that have the knowledge, skills and experience to deliver an eligible project.   Private sector entities and UN agencies are welcomed. Government agencies and Government departments are not eligible to receive UK PACT funding.  
In our commitment to the localisation of delivery, additional consideration will be given to consortia which include local organisations, Level 1 and Level 2 B-BBEE contributors, women-owned entities, youth-owned entities, and entities owned by people with disabilities.

What type of costs are eligible?
All projects must be delivered on a not-for-profit basis. Eligible costs will include: 

• Consultancy and/or staff time required to deliver activities;
• Reasonable travel and subsistence costs;
• Other costs directly related to activities and outputs (workshop, seminars, production of reports, translation etc.). 

We cannot award funding for tangible assets. For further details, please refer to the UK PACT Applicant Handbook and Budget Template which reflect FCDO grants management rules applicable to this programme. 

Projects will be selected through a one-stage open and competitive Call for Proposals. Applicants should read the Terms of Reference and Applicant Handbook to understand what is required to submit a strong proposal for this call.

To start your application process, fill in the templates below and then submit the form linked. After submitting the form, you will receive an email containing a link to upload your application pack. The following documents form your application pack and must be downloaded, completed in English, and submitted via the link sent to your email, after submitting the form below.

• Project proposal template 
• Budget and workplan template
• Project Theory of Change form
• Project risk and issue register template

All the guidance you will need to make an application can be found here:

• Terms of Reference
• Applicant handbook
• UK PACT's GEDSI Guidance
• Risk management guide for applicants

Click here to watch the recording and download the slides from our carbon pricing market engagement webinar. This webinar was held on 28 May 2025.

Answers to consolidated clarification questions submitted to indonesia@ukpact.co.uk are accessible here and will be updated on 3 July and 10 July 2025. The deadline for submitting clarification questions is 2 July 2025.

Access the Q&A document here - updated 11 July 2025