Loss and Damage Framework under the Climate Change Draft Bill

The Government, together with Commission XII of the House of Representatives of the Republic of Indonesia (“DPR RI”), is currently drafting the Bill on Equitable Climate Change Management (“Draft Bill”). Loss and damage are one of the areas to be regulated under the Draft Bill prepared by the Ministry of Environment (Kementerian Lingkungan Hidup – “KLH”).

Ary Sudjianto, Deputy for Climate Change Management and Carbon Economic Governance at KLH, explained that the loss and damage framework is intended to provide measures for addressing climate change impacts where mitigation and adaptation efforts prove insufficient. 

“Loss and damage regulate the measures to be taken when mitigation and adaptation efforts prove unsuccessful,” Ary stated.

Under the Draft Bill, loss and damage is specifically addressed in a dedicated chapter, as part of a group of chapters covering mitigation, adaptation, and loss and damage. The framework is directly linked to climate financing and funding mechanisms, as well as climate-related social protection, particularly for vulnerable groups. Loss and damage constitute one of the pillars of Indonesia’s national climate legal framework, alongside mitigation, adaptation, Carbon Economic Value (Nilai Ekonomi Karbon – “NEK”), and data transparency through measurement, reporting, and verification (“MRV”) mechanisms.