Minister Of Finance Sri Mulyani Emphasized The Importance Of Inclusiveness In Energy Transition Efforts

Minister of Finance, Sri Mulyani Indrawati. (Photo: Doc. Antara)

JAKARTA - Indonesian Finance Minister Sri Mulyani Indrawati emphasized the importance of inclusiveness and justice in energy transition efforts during the Working Dinner of the G20 Finance Ministers and Central Bank Governors Meeting in Washington DC, United States.

"All future climate planning must prioritize inclusiveness and justice. Ensuring a just and affordable transition is also in line with the G20 Transition Finance Framework," Sri Mulyani said in a statement in Jakarta, quoted from Antara, Saturday, April 20.

He continued the transition to a low-carbon economy requires enormous investment. Meanwhile, based on data from the United Nations Conference on Trade and Development (UNCTAD), there is an investment gap each year of approximately 400 billion US dollars to implement essential elements of the transition.

In that context, Energy Transition Mechanism (ETM) Country Platform is present as a blended finance framework to mobilize financial resources and international support.

One of the pilot projects that has been running is the Cirebon 1 power plant early retirement inclusiveness. With a capacity of 660 megawatts, it will cost approximately US$1.3 billion to retire this power plant in the next 7 years. However, this process can save 28.5 million tons of CO2e," he said.

On this occasion, the Minister of Finance also highlighted the carbon credit that needs to be prepared immediately, especially regarding the investment tastes of the private sector for this instrument.

According to him, the role of Multilateral Development Bank (MDB) such as World Bank, ADB, and AIIB in correcting risk perceptions and management is critical.

"Without their role, we will only depend on public financing, both nationally and globally, and not attract financing from the private sector at all," he added.

As co-chair of the Coalition Ministers for Climate Action (CFMCA), the Minister of Finance together with Steven van Weyenberg, the Dutch Minister of Finance, welcomed all collaborative efforts related to climate change transitions and solutions, including in the Task Force for the Global Mobilization against Climate Change (TF-CLIMA).