With a draft climate bill introduced, Indonesia may be entering a new era of climate governance. Establishing a climate council is one option on the table.
Drawing on models from over 25 countries, where similar institutions have demonstrated their value, a new climate institution could unlock climate finance, improve carbon markets and bring government, researchers, business and civil society closer together in addressing Indonesia’s risks and opportunities for climate action.
Good climate governance needs climate councils
Governments need institutions that support them to address climate impacts, shape carbon markets and move to cleaner, more secure energy sources. Strengthening climate governance is critical to making that happen. Climate framework laws, intergovernmental coordination, public participation and well-resourced public institutions are essential features of credible climate governance.
Expert advisory bodies – independent of policy-making functions and grounded in science – are another well-recognised feature of good governance. Since 2008, more than 25 countries around the world have established climate councils to advise their governments, forming the International Climate Councils Network (ICCN). Many advise on the implementation of Nationally Determined Contributions (NDCs), emissions trading schemes, climate finance, trade and carbon market rules.
There is no one-size-fits-all
Not only do councils advise on aspects of climate policy (mitigation, adaptation, just transition and sector pathways), but they also often undertake important “watchdog” roles (holding governments to account) and “convenor” roles (ensuring public participation). To function effectively and maximise their impact, councils need a properly resourced support secretariat.
A climate council in Indonesia would need to be tailored to Indonesia’s political system, context and climate and energy policy settings. As the ICCN’s “How to Create a Climate Council Toolkit” demonstrates, there is no “one-size-fits-all” model, but existing councils provide good examples of possible formats and real-world impact. It is up to Indonesia to draw on international practice and design a climate council that aligns with its national priorities such as sectoral plans, carbon market opportunities and the just transition.
Climate councils have real-world impact
Climate councils are not just advising governments; they are improving policy decision-making and delivering tangible results. This is especially important for countries like Indonesia, which have much higher vulnerability to climate impacts but lower readiness.
For example, Australia’s NDC directly followed the advice of the Australian Climate Change Authority, which recommended adoption of a 62-70% emissions reduction target (vs 2005 levels). Hon Chris Bowen, Minister for Climate Change and Energy and the President of Negotiations for COP31. said of the Authority that, “their expert, science-based advice ensures our policies remain ambitious but achievable by sending the right investment signal and responding to the science”. Australia’s climate council has also recently reviewed its national carbon credit unit scheme.
The Republic of Korea’s Presidential Commission on Climate Crisis Response has considered how Korea can improve its emissions trading scheme (K-ETS). Its newly established Climate Citizens’ Assembly investigates the impact of K-ETS on household electricity prices to ensure fair carbon pricing implementation.
Beyond Asia-Pacific, the UK Climate Change Committee’s Well-Adapted UK Report advises the country to prepare for extreme weather events through better cooling, flood protection, and a more secure water supply. Indonesia would benefit from expert advice on adaptation and resilience, as well as international insights from collaborating across a well-established climate council network.
What an Indonesian climate council could offer
For Indonesia, the value of a climate council would lie in creating an independent source of technical and scientific scrutiny that work across multiple interests and authorities. Rather than becoming another political layer, a council could provide credible analysis of whether climate, sectoral and finance policies are delivering against national objectives, while identifying where vested interests, institutional fragmentation or weak implementation undermine progress.
An Indonesian climate council could also strengthen transparency and accountability in accessing finance from carbon markets. As Article 6 of the Paris Agreement processes require transparent reporting and credible projects, a council could help with establishing clear guidance and rules for implementation and building confidence among market participants and international partners. For example, the Nigerian National Council on Climate Change (NCCC) oversees the National Climate Change Fund and use Article 6 as a foundational capital mobilisation strategy to secure scaled international climate finance.
Beyond carbon markets, an Indonesian council’s convening role would be particularly important in bringing government, researchers, civil society and market actors into a more evidence-based dialogue, while retaining sufficient independence to question established assumptions and power structures.
A timely opportunity for Indonesia
Indonesia is actively considering the legal foundations for climate policy with a draft climate change bill. Against this backdrop, establishing a climate council in Indonesia would be a strategic step that could help to strengthen emissions-reduction mechanisms, prepare for climate risks and mobilise finance. The new institution could position Indonesia as the next carbon market powerhouse.
