We are pleased to announce the Indonesia-UK PACT (Partnering for Accelerated Climate Transitions) programme has launched today a new funding opportunity within the carbon pricing sector. There is a six-week application window and the deadline for submitting proposals is 23 July 2025 at 18:00 (ICT)/ 11:00 (UTC).
The Indonesia UK PACT (Partnering for Accelerated Climate Transitions) has successfully launched its energy efficiency and low-carbon transport portfolio. The programme is now expanding to include initiatives focused on carbon pricing.
What are we looking for?
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.
What type of activities are we looking to fund?
Theme 1: Strengthening the regulatory framework for carbon pricing
This theme focuses on supporting the development and alignment of regulations and plans related to carbon pricing at both national and sectoral levels. Support will primarily target market-based instruments such as Emissions Trading Systems (ETS) and offset mechanisms, including voluntary carbon markets (VCM), while remaining adaptable to other carbon pricing approaches as relevant to Indonesia’s evolving policy landscape. 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. Regulatory support will cover overarching policy frameworks as well as specific implementing regulations that guide the operationalisation of carbon pricing mechanisms.
Theme 2: Enhancing carbon market strategy and infrastructure
This theme supports the development and improvement of systems and processes that underpin carbon market operations. 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.
Who can apply?
Government agencies and/or departments are not eligible to apply either as a lead organisation or partner in a consortium. Both international and local organisations are eligible to apply. Organisations applying as a consortium must have at least one local entity, either as consortium lead or consortium partner. Applicants must submit a letter of intent signed by the consortium lead and member(s) to form a consortium to response to this proposal.For full details on how to apply click the button below.
Visit the Indonesia UK PACT web page to learn more about our work.
