Ministry Of Finance: Need Funds 281.23 Billion US Dollars To Meet Target 29 Percent Of Carbon Emission Reduction In 2030

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu. (Photo: Doc. Antara)

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu said funding of US$281.23 billion or Rp4 quadrillion was needed to meet the target of 29 percent reduction in carbon emissions in Indonesia by 2030.

"Because climate change has its effect worldwide, it requires commitment," said Febrio when giving material at the Indonesia Energy Transition Dialogue 2023 event, in Jakarta, quoted from Antara, Tuesday, September 19.

Febrio mengatakan, angka tersebut merupakan kebutuhan jangka menengah berdasarkan Laporan Terbaru Ketiga Biennial (BUR-3), untuk memenuhi kontribusi secara nasional (NDC) penurunan emisi, yang tertuang dalam Perjanjian Paris yang merupakan kesepakatan dunia menghadapi perubahan iklim.

According to Febrio, the sector that needs the most investment is to reduce carbon, namely the energy sector, with a transition capital of US$ 245.99 billion.

"So that the energy transition can be fair and even," he said.

He further said that in 2022 Indonesia had determined an increase in national contribution (E-NDC) by 43 percent in 2030, which would be achieved if it used a funding scheme with international assistance.

Meanwhile, without international assistance, the emission reduction target rose, which was previously 29 percent to 31.89 percent.

Meanwhile, according to him, the segmentation of the CO2 decline target when using a global funding scheme, namely 729 gigatons in the forest utilization and land use sector, 446 gigatons in the energy sector, 43.5 gigatons in the waste sector, and 12 gigatons in the agricultural sector.

Then, nine gigatons in the industrial process and production sector (IPPU), with a total emission reduction of 1,239 gigatons.

Meanwhile, if you use independent funding without foreign assistance, the accumulated amount of CO2 reduced is 915 gigatons.

"That's our commitment in the Paris Agreement," said Febrio.

In addition, according to Febrio, since the issuance of green sukuk or "Green sukuk", Indonesia has managed to raise an investment of 6.54 billion US dollars, and has allocated the money to accelerate the energy transition.

For information, Indonesia has ratified the Paris Agreement into law since 2016, so it requires Indonesia to reduce greenhouse effects.