Indonesian Chamber Of Commerce And Industry Encourages Opportunities For Green Industry Development By Accelerating Clean Energy Transition After COP28

Photo Doc. Indonesian Chamber of Commerce and Industry

JAKARTA - The Indonesian Chamber of Commerce and Industry (Kadin) held the Post COP 28 Discussion Forum on December 15, 2023.

After the COP 28 Climate Change Summit was held on November 30, 2023 - December 12, 2023, the Indonesian Chamber of Commerce and Industry followed up on the agreed commitment.

COP 28 is a high-level conference that generates 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.

Chairman of the Head of the Energy Transition Task Force, Anthony Utomo, said that the climate related trade measures, which are increasingly widespread, have to see opportunities for the development of the green industry that go hand in hand with the national energy transition.

In line with Kadin Energy Transition Task Force or Kadin TRANSI, we see that the aggregation of this net energy demand can help the investment climate and of course it can provide certainty in terms of absorption of electricity supply. If we can take this opportunity, Indonesia can take a strategic position in the global green industry competition map," he said.

Anthony said that not only is the labeling of calories or sugar content anymore but the carbon rate of the final product or the emission content table used to make a product a trend in the tastes of global buyers in the future.

"In one of the programs initiated by the TRANSI Chamber of Commerce and Industry, namely the GIDI or the Green Industrial Development Initiative, we will encourage demand creation and linkage programs for domestic and foreign investors in green industries such as green steel, green aluminum, green data center so that there is a market niche that can support the new economy in Indonesia, the market for the future in line with our clean energy pathway or green RUPTL," added Anthony.

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 explained

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.

The disbursed funding assistance is divided into three sectors, namely renewable energy financing of US$5 billion, the food sector of US$3.1 billion, and US$2.7 billion 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," he said.

Shinta said that Indonesia is currently also preparing Second NDC for a more ambitious emission reduction target which is planned to be delivered in 2025.

"This will create opportunities for additional renewable energy capacity in order to reduce emissions and increase investment that supports the energy transition," he explained further.

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 into Europe.

Meanwhile, developing countries have only created an increase in renewable energy projects by 1 percent every year since 2015.