POLICY
JAKARTA (FORESTHINTS.NEWS) - Indonesia's Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan opened the Tri Hita Karana (THK) Forum on Sustainable Development in Bali yesterday (Nov 13) with a speech in which he highlighted the importance of blended finance as a means of bridging the vast climate action funding gap that exists in developing countries.
The event, which took place on the sidelines of the G20 summit, was held to coincide with the launch of the “Global Blended Finance Alliance”, an initiative focused on raising the huge sums of investment funds needed to meet the developing world's ambitious climate goals, through enhanced finance blending across governments, the private sector and philanthropic organizations.
"We don’t have time to reinvent the wheel. We don’t have time to lose if we are going to unlock trillions in investment each year for the planet. We need to do that or the next generation will be left with nothing," Minister Pandjaitan warned starkly.
Addressing the numerous business and finance leaders in attendance, he challenged them to participate in narrowing the multitrillion-dollar gap in funding required for emerging economies in general, and Indonesia in particular, to achieve their enhanced NDC targets and other increasingly ambitious climate goals.
The Coordinating Minister specifically mentioned the funding gap brought about by the failure of the world's most advanced nations to provide, as promised, USD 100 billion per year by 2020 for climate action in developing countries.
"Moreover, around USD 3.3-4.5 trillion per year needs to be mobilized to achieve the 2030 Agenda for SDGs," he added.
In line with the reinforced determination expressed at COP26 in Glasgow to restrict global temperature rises to 1.5 degrees, Indonesia - as a responsible member of the global community - has committed itself, among other things, to phasing-down coal power plants and achieving net-zero emissions by 2060 or sooner, as part of its enhanced NDCs.
Energy transition support vital
Minister Pandjaitan spoke about the ongoing negotiations on a collaboration with the International Partners Group led by US-Japan for the Just Energy Transition Partnership (JETP) program, as a vital component of the country's move towards a clean energy system marked by the closure of coal-fired plants and substantial greenhouse gas emissions reductions.
"The Government of Indonesia has identified a just and affordable transition from coal to clean energy as a national priority and has included energy transition driven by a sustainable financing mechanism," he said.
Nonetheless, the Coordinating Minister repeatedly emphasized that such a transition depends on the world's wealthiest countries stepping up to fulfil their climate finance pledges.
"I’m proud of the actions we have taken to finance the transition to a clean energy system. This requires international money to move faster,” he urged.
Blended finance to safeguard biodiversity
Minister Pandjaitan touched on the unrivalled biodiversity richness in Indonesia - which is home to numerous wildlife species found nowhere else on earth, in addition to immense swathes of rainforests, peatland, mangroves and coral reefs - and the innovative ways in which the country is seeking to protect it.
"I’m proud to see so many blended finance solutions for nature in Indonesia. They include the world’s first sustainable landscapes bond and new funds for biodiversity. We have also developed carbon finance regulations," he said.
Calling for a 'more sustainable world as the best way to drive growth and build resilience to economic shocks', Luhut cited the Indonesian Government's achievement of mobilizing over USD 30 billion for SDG-linked projects and initiatives in 2022 by means of blended finance solutions - tripling the amount from the previous THK Forum in 2018 - while simultaneously overseeing an increase in economic growth.
“We need to share knowledge about these solutions so they can be copied and scaled. We can simplify these complex transactions,” the Coordinating Minister asserted.
Minister Pandjaitan concluded by appealing for many ‘big ideas’ as Indonesia, and developing countries in general, strives to close the gap in funding, caused by unmet pledges, for its ambitious climate change mitigation goals through creative blended finance solutions, stressing that "What is good for the planet is also good for people, jobs and growth.”
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POLICY
JAKARTA (FORESTHINTS.NEWS) - Indonesia's Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan opened the Tri Hita Karana (THK) Forum on Sustainable Development in Bali yesterday (Nov 13) with a speech in which he highlighted the importance of blended finance as a means of bridging the vast climate action funding gap that exists in developing countries.
The event, which took place on the sidelines of the G20 summit, was held to coincide with the launch of the “Global Blended Finance Alliance”, an initiative focused on raising the huge sums of investment funds needed to meet the developing world's ambitious climate goals, through enhanced finance blending across governments, the private sector and philanthropic organizations.
"We don’t have time to reinvent the wheel. We don’t have time to lose if we are going to unlock trillions in investment each year for the planet. We need to do that or the next generation will be left with nothing," Minister Pandjaitan warned starkly.
Addressing the numerous business and finance leaders in attendance, he challenged them to participate in narrowing the multitrillion-dollar gap in funding required for emerging economies in general, and Indonesia in particular, to achieve their enhanced NDC targets and other increasingly ambitious climate goals.
The Coordinating Minister specifically mentioned the funding gap brought about by the failure of the world's most advanced nations to provide, as promised, USD 100 billion per year by 2020 for climate action in developing countries.
"Moreover, around USD 3.3-4.5 trillion per year needs to be mobilized to achieve the 2030 Agenda for SDGs," he added.
In line with the reinforced determination expressed at COP26 in Glasgow to restrict global temperature rises to 1.5 degrees, Indonesia - as a responsible member of the global community - has committed itself, among other things, to phasing-down coal power plants and achieving net-zero emissions by 2060 or sooner, as part of its enhanced NDCs.
Energy transition support vital
Minister Pandjaitan spoke about the ongoing negotiations on a collaboration with the International Partners Group led by US-Japan for the Just Energy Transition Partnership (JETP) program, as a vital component of the country's move towards a clean energy system marked by the closure of coal-fired plants and substantial greenhouse gas emissions reductions.
"The Government of Indonesia has identified a just and affordable transition from coal to clean energy as a national priority and has included energy transition driven by a sustainable financing mechanism," he said.
Nonetheless, the Coordinating Minister repeatedly emphasized that such a transition depends on the world's wealthiest countries stepping up to fulfil their climate finance pledges.
"I’m proud of the actions we have taken to finance the transition to a clean energy system. This requires international money to move faster,” he urged.
Blended finance to safeguard biodiversity
Minister Pandjaitan touched on the unrivalled biodiversity richness in Indonesia - which is home to numerous wildlife species found nowhere else on earth, in addition to immense swathes of rainforests, peatland, mangroves and coral reefs - and the innovative ways in which the country is seeking to protect it.
"I’m proud to see so many blended finance solutions for nature in Indonesia. They include the world’s first sustainable landscapes bond and new funds for biodiversity. We have also developed carbon finance regulations," he said.
Calling for a 'more sustainable world as the best way to drive growth and build resilience to economic shocks', Luhut cited the Indonesian Government's achievement of mobilizing over USD 30 billion for SDG-linked projects and initiatives in 2022 by means of blended finance solutions - tripling the amount from the previous THK Forum in 2018 - while simultaneously overseeing an increase in economic growth.
“We need to share knowledge about these solutions so they can be copied and scaled. We can simplify these complex transactions,” the Coordinating Minister asserted.
Minister Pandjaitan concluded by appealing for many ‘big ideas’ as Indonesia, and developing countries in general, strives to close the gap in funding, caused by unmet pledges, for its ambitious climate change mitigation goals through creative blended finance solutions, stressing that "What is good for the planet is also good for people, jobs and growth.”
RELATED STORIES
