COP28 Results In Financing Commitment Of IDR 1.3 Quadrillion, Kadin Calls Green Investment Opportunities

Rupiah (Photo: Antara)

JAKARTA - The Indonesian Chamber of Commerce and Industry (Kadin) is following up on the commitments that have been agreed in the COP 28 Climate Change Summit forum which was held on November 30, 2023 - December 12, 2023. Meanwhile, COP 28 is a high-level conference that produces agreements in an effort to reduce greenhouse gas emissions.

There are at least four Pillars of the Presidential Action Agenda in COP 28. Among them is accelerating the energy transition, improving climate funding, focusing on humans, life, and livelihoods, and supporting all activities with complete inclusiveness.

Sebagai salah satu perwakilan Indonesia untuk COP 28, Kadin Indonesia turut menjadi bagian dari upaya promosi dan menyambut baik adanya komitmen pembiayaan dengan nilai total 83,76 miliar dolar AS atau setara Rp1,3 kuadrillion.

Deputy General Chairperson (WKU) of the Coordinator for Maritime Affairs, Investment and Foreign Affairs of the Indonesian Chamber of Commerce and Industry, Shinta W. Kamdani believes that the existing financing can have a sizeable impact in accelerating climate change management.

"Of course this can be an opportunity for the business sector through increasing green investment," he said.

Shinta conveyed that the climate finance financing program is to support climate change mitigation and adaptation to the renewable energy development sector, as well as special funding to help developing countries reduce greenhouse gas emissions, as well as increase climate change resilience.

Shinta detailed that the disbursed funding assistance was divided into three sectors, namely renewable energy financing of 5 billion US dollars, the food sector of 3.1 billion US dollars, and 2.7 billion US dollars for the health sector, and the rest for other sectors.

"Support to reduce carbon emissions in the NDC Framework has been increased by Indonesia in 2022. But Indonesia is currently also preparing Second NDC for a more ambitious emission reduction target that is planned to be delivered in 2025. This will create opportunities for increasing renewable energy capacity in order to reduce emissions and increase investment that supports the energy transition," he explained.

In fact, the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2023 revealed that most investments in renewable energy flow to developed countries, about three-quarters of all international investment financing in renewable energy in 2022 flowing to Europe.

Meanwhile, developing countries have only created a 1% increase in renewable energy projects every year since 2015.

Deputy for Infrastructure and Transportation Coordination of the Coordinating Ministry for Maritime Affairs and Investment, Rachmat Kaimuddin, said that Indonesia is ready to collaborate with various parties to achieve the Net Zero Emission 2060 target, especially through climate funding that does not burden the interests of developing countries.

"The government is always open to building dialogue and collaboration with policy makers between developed and developing countries. One of the keys to the success of Indonesia's emission target is the availability of climate funding based on the principle of justice, and supporting Indonesia's need to continue to grow resiliently," said Rachmat.

Furthermore, the United Nations Framework Convention on Climate Change (UNFCCC) 2023 revealed that developing countries need at least USD 6 trillion in renewable energy investment by 2030 to meet less than half of the NDC.

Chairman of the Head of the Net Zero Hub Chamber, Dharsono Hartono, said that the costs needed to achieve the green energy transition are indeed large. Our task now is to follow up with the commitment of funds that will be disbursed for the benefit of Indonesia which is better in the future," he said.

Countries and industries have a key role to play in achieving a sustainable future. Therefore, collaborative work is needed, in order to create a better environmental heritage for future generations.

COP 28 in Dubai was attended by more than 70,000 participants from around the world, including heads of state, government officials, international industry leaders, representatives of the private sector, academics, experts, youth, and civil society.