The urgency of addressing climate change and fostering sustainable development has propelled green financing to the forefront in Southeast Asia.
As nations grapple with environmental challenges like deforestation, biodiversity loss, and the impact of climate change on vulnerable communities, the need for innovative financial mechanisms becomes increasingly evident. Green financing aims to channel capital towards projects that mitigate climate risks, protect ecosystems, and promote long-term well-being.
Singapore plays a pivotal role in advancing green financing. Earlier this year, the Monetary Authority of Singapore (MAS) and Institute of Banking and Finance (IBF), supported by Workforce Singapore (WSG), launched the Sustainable Finance Jobs Transformation Map which lays out the impact of sustainability trends on jobs in Singapore’s financial services sector and the emerging skills that the workforce will require to serve sustainable financing demand in the region.
In line with the above programme, Singapore Green Finance Centre (SGFC), a collaborative effort between Imperial College Business School and Singapore Management University and supported by the Monetary Authority of Singapore (MAS) has aimed to create an ecosystem for sustainable investing in Asia.SGFC leverages high-impact research, educational programs, and talent development to foster green capital markets in Singapore.
Public-private collaboration and community engagement
However, achieving lasting environmental change requires not just financial expertise but also strong partnerships and community engagement.
One such example of collaborative work in Southeast Asia can be found in Indonesia. Warsi, a non-profit organisation in Indonesia is dedicated to environmental conservation. It focuses on education, advocacy, and land restoration and has conducted various activities with the community to restore and conserve peatlands, including sustainable coffee cultivation, eco-fishery, peatland edu-eco-tourism, and the Pohon Asuh (tree adoption) initiative.
Warsi also uses these initiatives to provide livelihood to the community while promoting sustainable land use. In addition, the activities by Warsi are often used as proof points on the impact of restoration efforts to curb carbon emissions.
Alongside the Indonesian government and the local community, Warsi has also initiated an edu-eco-tourism project in the peat forest of Pematang Rahim village by rebuilding infrastructure such as trekking paths, gates, and gazebos. In collaboration with the community, Warsi is working to revive eco-tourism, which suffered during the Covid-19 pandemic.
With financial support from various organisations, including the local and national governments, Warsi is enhancing the visitor experience and providing education about the peat ecosystem. Additionally, this initiative emphasises the importance of forest management in preventing fires, particularly during the dry season, and highlights the community’s crucial role in protecting the forest from external threats.
In addition to large-scale projects like eco-tourism, Warsi invites public participation through its Pohon Asuh (Foster Tree) program. This crowdfunding initiative allows individuals to contribute Rp200,000 (US$12.5) annually to adopt a tree with a diameter of 60cm or more. Managed by local communities, the program ensures tree growth and prevents illegal logging through forest patrols, bolstering the local economy and encouraging community forest stewardship.
Apart from eco-tourism, Warsi along with the community in degraded peatland areas are cultivating liberica coffee. The activities have provided a sustainable farming alternative to Indonesia’s fragile peatlands. The yield of coffee beans can be enhanced by adding lime or manure, directly increasing farmers’ income. To reduce emissions further Warsi and the community also use the coffee cherry residue as compost, ensuring soil fertility and supporting sustainable farming. This approach not only preserves the delicate peatland ecosystem but also boosts the economic well-being of local communities.
The success of KKI-Warsi’s initiatives demonstrates the potential for other Asean countries including Singapore to adopt similar approaches. By implementing fiscal incentives, promoting sustainable land use, and fostering regional collaboration, Southeast Asia can make significant strides in combating deforestation and climate change.
About KKI Warsi
Warsi was initially established as WARSI (Warung Informasi Konservasi) Foundation by 12 non-government organisations in four provinces, from West Sumatra, Jambi, Bengkulu and South Sumatra. WARSI Foundation was established to fight against the New Order government’s plan to relocate the community that has historically been living in the Kerinci Seblat National Park (TNKS) areas. WARSI offers a new approach in the management of TNKS through conservation with the community.
In this approach, the community is an integrated part in the management of forest areas. Warsi believes that the community is capable of living in harmony with nature using their local wisdoms. With this approach, WARSI has been involved in the design of an approach in the integrated management of TNKS or what is commonly known as the Integrated Conservation Development Project TNKS (ICDP TNKS). ICDP TNKS was Warsi’s initial step in advancing towards bigger ideas.
In the next period, WARSI developed a forest management model that is based on marginalised indigenous people widely known as the Orang Rimba. WARSI has been successful in promoting the protection of forest areas as Orang Rimba’s habitat through a national park scheme.
The success of the advocacy was further reinforced by the establishment of a new paradigm in the management of a national park that recognise the historical existence of human within the national park areas. The achievement has further made WARSI believe more in the Community-Centred Conservation approach.
For institutional strengthening, Warsi has changed from a foundation to an association in 2002. With the change, Warsi has turned into an organisation that is open to individuals with commitment to forest conservation and empowerment of communities living inside and around the forest. In addition, the institutional change has also brought a change to the organisations’ name: from WARSI to Komunitas Konservasi Indonesia – WARSI (KKI WARSI).
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