Sri Mulyani: The Issue Of Climate Change Is As Important As The Today's Geopolitical Challenges

Illustration (Photo: Doc. Ministry of Finance)

Minister of Finance (Menkeu) Sri Mulyani said the government still pays great attention to the issue of climate change in the midst of geopolitical turmoil that dominates the current world recovery agenda.

According to the Minister of Finance, the two focuses are strategic because they have a broad and significant socio-economic impact.

Given the current low proportion of green and sustainable financing, there is an urgent need to develop a high-level framework for transitional finance so that the financing financial market can support a suitable and affordable transition that is also sustainable. This also includes how we will be able to achieve the Paris Agreement in the 2030 Sustainable Development Goals (SDGs)," he said in an official statement quoted on Sunday, November 6.

The Minister of Finance added that this framework will develop a common understanding of key elements of how to support financing, especially in facilitating climate transitions. Identification of transition activity will be based on credible technical pathways for the carbon-intensive sector principal for decarbonization towards net zero emission.

Meanwhile, he said the energy transition is very important for low-carbon economic growth which will require large investments and transformational policies.

The Minister of Finance also revealed that for many developing countries that have limited resources and capacity, this will be a very difficult challenge to overcome.

He said climate change is important but they are in a limited capacity position to be able to meet carbon emission reduction targets.

"Under the Presidential Decree of Indonesia G20, climate change is one of the most important topics that are not only discussed but we also describe in the form of high-level cross-approximation guidelines that are in line so that we can provide adjustments to the global economic transition that is affordable towards sustainability," he said.

Furthermore, the successful transition requires cooperation and collaboration between the government and all stakeholders, including one of the most important roles, is actually by multilateral institutions.

It was emphasized that the multilateral institution was in a better position and had the capacity in the form of knowledge, financing, and power to mobilize financing and had technical policies in developing sustainable finance.

"I want to encourage all participants to give tangible results in achieving a smooth real transitional framework. This is important not only for us today but most importantly, this will be important for our next generation," closed the Minister of Finance Sri Mulyani.