Indonesia has signaled its willingness to commit to policies to mitigate and adapt to climate change. Currently, Indonesia is thought to be the largest global emitter of carbon dioxide from deforestation. Indonesia could attract significant financial flows for climate change mitigation and adaptation. A crucial factor underpinning such future financial flows will be actual change in policies at the central and regional level. This project will examine how the central government can improve its economic governance framework to tap into international financial investments flowing into climate change projects. It will also consider how to assure that financial flows reach the regions (provinces and districts), and that they are used at the local level for climate related purposes.