POLICY
JAKARTA (FORESTHINTS.NEWS) - Indonesian Environment and Forestry Minister Siti Nurbaya says that as a large developing country, the world's fourth largest by population, Indonesia requires large financial resources of at least USD81 billion to meet its NDC target, including to scale up its climate adaptation.
According to the minister, around 34% of this climate finance requirement has been met from the country's state budget over the last five years.
Indonesia is of the view that enhanced climate ambitions in developing countries, including itself, must be matched by enhanced ambitions from developed countries by turning their climate finance pledge of USD100 billion annually into reality.
These were among the key takeaways conveyed virtually by Minister Nurbaya at a two-day ministerial meeting (Jul 25 and 26) hosted by COP26 President Alok Sharma.
Held ahead of COP26, the event was attended by climate and environment ministers from 50+ countries, both virtually and in-person. Its objective was to shape the vision of the final outcomes from COP26 and build a “unity of purpose to deliver them”.
Filling the gap
Minister Nurbaya reiterated that Indonesia has set an NDC target of 41% reduction of GHG emissions by 2030 with adequate international support.
To ensure that Indonesia remains on track to achieve its NDC target, including efforts to augment its climate adaptation, she continued, the country still has to cover a substantial gap to obtain its required climate finance.
"It should be noted that USD81 billion is the minimum total climate funds required by Indonesia, and this need continues to move, of course in an upward direction," the minister explained in writing to FORESTHINTS.NEWS (Jul 26).
"Not to mention, if we calculate the costs needed for energy transition, especially the phasing out of coal, the climate finance requirement will of course be greater than USD81 billion. Basically, enhanced ambitions for climate actions will correlate to an enhanced level of required climate finance," she added.
Appreciation for GCF, World Bank
At the event, Minister Nurbaya emphasized that the mobilization of climate finance from outside the state budget, as well as the promotion of innovative climate financing, will continue to be pursued, including through blended climate finance, carbon taxes, and results-based payment mechanisms.
“Considerable progress has been made domestically as Indonesia aspires to lead by example in creating financial instruments to support low carbon development among other things,” she said.
She conveyed her gratitude at the meeting to the GCF (Green Climate Fund) which has transferred USD103.8 million to the UNDP for Indonesia thanks to the country's success in reducing emissions from deforestation and forest degradation during the 2014-2016 period.
Minister Nurbaya also expressed her appreciation to the World Bank's Forest Carbon Partnership Facility (FCPF) for its climate finance support to Indonesia totalling USD110 million.
“These funds are being channelled through the Indonesian Environmental Fund Agency (BPDLH),” she confirmed.
The minister also pointed out that new instruments have been developed by Indonesia to mobilize climate finance, such as green bonds, green sukuk, and climate finance platforms for private sector investments.
These new instruments, she stressed, continue to play a key role in directing global green funds to Indonesia for climate actions, including for projects related to clean and renewable energy.
Four key concerns
Minister Nurbaya affirmed that “Indonesia urges developed countries to fulfil their commitment of USD100 billion per year to support developing countries in implementing their NDC and achieving their commitments.”
In the minister’s view, a level of confidence and trust can be built upon a proven record of the realization of financial commitments from these developed countries.
“So it is necessary to have clarity and transparency on the progress of the annual USD100 billion commitment in terms of its realization by developed countries. In this way, we can identify the remaining amount and devise a strategy to close the gap, taking into account the needs of developing countries,” she explained.
Minister Nurbaya raised four specific matters of concern to Indonesia. Firstly, according to her, “access to climate finance should be streamlined for developing countries.”
Secondly, she continued, “there is a necessity to evaluate the availability of financial support for developing countries to enhance their NDC ambitions, including long-term planning incorporating a Long-Term Strategy (LTS).”
“USD100 billion per year is required for the Long-term Finance (LTF) work program. The aim of this to see the progress of the LTF in the context of scaling up new and additional, predictable, and adequate finance, including the commitment of developed countries to mobilize USD100 billion annually,” she asserted.
Minister Nurbaya stated that “Indonesia’s view is that the LTF work program must continue beyond 2020 because it provides important opportunities for parties to reflect on the current state of the annual USD100 billion from developed countries. Also, the LTF is a negotiation agenda involving all parties to the UNFCCC.”
The third concern expressed by the minister is that the commitment of USD100 billion per year “should include a balance of financing between mitigation and adaptation.”
The fourth and final concern, according to her, pertains to alignment with the G77 and China's position on the issue of the USD100 billion goal.
“We expect that COP26 will call for increased ambitions and efforts from developed countries,” she stated.
Minister Nurbaya underlined Indonesia’s belief that the increased ambitions of developed nations should include the fulfilment of the USD100 billion goal, as well as enhanced clarity and certainty with regard to the mobilization of climate finance from different and diverse sources.
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POLICY
JAKARTA (FORESTHINTS.NEWS) - Indonesian Environment and Forestry Minister Siti Nurbaya says that as a large developing country, the world's fourth largest by population, Indonesia requires large financial resources of at least USD81 billion to meet its NDC target, including to scale up its climate adaptation.
According to the minister, around 34% of this climate finance requirement has been met from the country's state budget over the last five years.
Indonesia is of the view that enhanced climate ambitions in developing countries, including itself, must be matched by enhanced ambitions from developed countries by turning their climate finance pledge of USD100 billion annually into reality.
These were among the key takeaways conveyed virtually by Minister Nurbaya at a two-day ministerial meeting (Jul 25 and 26) hosted by COP26 President Alok Sharma.
Held ahead of COP26, the event was attended by climate and environment ministers from 50+ countries, both virtually and in-person. Its objective was to shape the vision of the final outcomes from COP26 and build a “unity of purpose to deliver them”.
Filling the gap
Minister Nurbaya reiterated that Indonesia has set an NDC target of 41% reduction of GHG emissions by 2030 with adequate international support.
To ensure that Indonesia remains on track to achieve its NDC target, including efforts to augment its climate adaptation, she continued, the country still has to cover a substantial gap to obtain its required climate finance.
"It should be noted that USD81 billion is the minimum total climate funds required by Indonesia, and this need continues to move, of course in an upward direction," the minister explained in writing to FORESTHINTS.NEWS (Jul 26).
"Not to mention, if we calculate the costs needed for energy transition, especially the phasing out of coal, the climate finance requirement will of course be greater than USD81 billion. Basically, enhanced ambitions for climate actions will correlate to an enhanced level of required climate finance," she added.
Appreciation for GCF, World Bank
At the event, Minister Nurbaya emphasized that the mobilization of climate finance from outside the state budget, as well as the promotion of innovative climate financing, will continue to be pursued, including through blended climate finance, carbon taxes, and results-based payment mechanisms.
“Considerable progress has been made domestically as Indonesia aspires to lead by example in creating financial instruments to support low carbon development among other things,” she said.
She conveyed her gratitude at the meeting to the GCF (Green Climate Fund) which has transferred USD103.8 million to the UNDP for Indonesia thanks to the country's success in reducing emissions from deforestation and forest degradation during the 2014-2016 period.
Minister Nurbaya also expressed her appreciation to the World Bank's Forest Carbon Partnership Facility (FCPF) for its climate finance support to Indonesia totalling USD110 million.
“These funds are being channelled through the Indonesian Environmental Fund Agency (BPDLH),” she confirmed.
The minister also pointed out that new instruments have been developed by Indonesia to mobilize climate finance, such as green bonds, green sukuk, and climate finance platforms for private sector investments.
These new instruments, she stressed, continue to play a key role in directing global green funds to Indonesia for climate actions, including for projects related to clean and renewable energy.
Four key concerns
Minister Nurbaya affirmed that “Indonesia urges developed countries to fulfil their commitment of USD100 billion per year to support developing countries in implementing their NDC and achieving their commitments.”
In the minister’s view, a level of confidence and trust can be built upon a proven record of the realization of financial commitments from these developed countries.
“So it is necessary to have clarity and transparency on the progress of the annual USD100 billion commitment in terms of its realization by developed countries. In this way, we can identify the remaining amount and devise a strategy to close the gap, taking into account the needs of developing countries,” she explained.
Minister Nurbaya raised four specific matters of concern to Indonesia. Firstly, according to her, “access to climate finance should be streamlined for developing countries.”
Secondly, she continued, “there is a necessity to evaluate the availability of financial support for developing countries to enhance their NDC ambitions, including long-term planning incorporating a Long-Term Strategy (LTS).”
“USD100 billion per year is required for the Long-term Finance (LTF) work program. The aim of this to see the progress of the LTF in the context of scaling up new and additional, predictable, and adequate finance, including the commitment of developed countries to mobilize USD100 billion annually,” she asserted.
Minister Nurbaya stated that “Indonesia’s view is that the LTF work program must continue beyond 2020 because it provides important opportunities for parties to reflect on the current state of the annual USD100 billion from developed countries. Also, the LTF is a negotiation agenda involving all parties to the UNFCCC.”
The third concern expressed by the minister is that the commitment of USD100 billion per year “should include a balance of financing between mitigation and adaptation.”
The fourth and final concern, according to her, pertains to alignment with the G77 and China's position on the issue of the USD100 billion goal.
“We expect that COP26 will call for increased ambitions and efforts from developed countries,” she stated.
Minister Nurbaya underlined Indonesia’s belief that the increased ambitions of developed nations should include the fulfilment of the USD100 billion goal, as well as enhanced clarity and certainty with regard to the mobilization of climate finance from different and diverse sources.
RELATED STORIES
