The rapid development of modern bioenergy in the last several years presents great opportunities for sustainable development and climate change mitigation. However, financing of bioenergy projects is still a hurdle in Indonesia as banks take into serious consideration the risk return profiles of their bioenergy investments. Meanwhile, investors may consider Indonesia’s growing demand for energy as a significant reason to invest in the nation’s renewable energy sector. The archipelago’s growing consumption of energy as well as the government’s interest in boosting its domestic supply of energy resources presents firms with an outstanding opportunity.

The guidelines aim to facilitate access to financing for bioenergy for sustainable development at the project level. It provides a tool for use by project developers when assessing different financing opportunities for bioenergy projects, giving a clear picture of selection criteria and project characteristics that should be fulfilled to receive financing. This guideline consists of 4 chapters which discuss the perspective of project owner and lenders and summarizes possibilities to finance biomass projects by debt and capital finance as well as grant, the involved entities that have interest or concern in a given project and outlines ways, such as risk mitigation, collaboration with banks and management measures, to improve the access to the above-mentioned methods of financing, and bioenergy projects financing case study explaining on a cash-flow basis the principles of financing biomass projects.