The government estimates that the funding needed to achieve the target of reducing greenhouse gas emissions is in the thousands of trillions in IDR, and billions in US$. During the first day of the G20 meeting, Finance Minister, Sri Mulyani, stated that most of the green funds have to come from bank financing. This requires involvement from financial regulators, such as Bank Indonesia and OJK, to signal that investment in climate change projects are risk-adjusted. She also highlighted two sectors: (1) forestry and land use and (2) transportation and energy sectors require the largest capital investments. She estimates that those two sectors will need capital injections of US$ ~250 billion (IDR 3,590 trillion) to reduce emissions by 41% by 2023.
Copyright © 2021. All rights reserved.