Investment Minister Bahlil Asks G20 Countries To Overcome Green Investment Inequality

Minister of Investment/Head of BKPM Bahlil Lahadalia. (Photo: ANTARA)

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia asked the G20 countries to address the gap in the flow of green investment between developed and developing countries.

"I can honestly say that in this respectable forum, there is an injustice in the flow of investment between developed and developing countries in investing in green energy. This is still very unequal," Bahlil said as quoted by ANTARA, Wednesday, July 6.

According to Bahlil, only one-fifth of green energy investment flows to developing countries.

"In other words, 2/3 of the total world population only gets 1/5 of the total green investment," he said.

In addition, Bahlil said, the sale and purchase price of carbon credits from green projects sourced from developed countries is claimed to be much more expensive than those from developing countries.

Bahlil said that the carbon price for developing countries is US$10, while developed countries are US$100.

In fact, he continued, in various international forums the world's countries agreed to reduce greenhouse emissions.

Therefore, the Minister of Investment encourages G20 countries to regulate the governance of carbon prices fairly so that there is no significant inequality in the flow of green investment.

"I don't want there to be an unfair treatment, because the emission issue is a world problem. It's time for this forum to sit down on the same level, stand up as high as possible for the good of the world's people," he said.

The discussion on green investment that supports global economic recovery was included as one of the points discussed at the Second TIIWG meeting.

Overall, the three issues discussed were World Trade Organization (WTO) reform; Trade, Investment and Industry Responses to Pandemics and the Global Health Architecture; and Encouraging Sustainable Investment in the context of Global Economic Recovery.

In the previous TIIWG First Meeting, three other issues were discussed, namely the Role of the Multilateral Trading System to accelerate the achievement of Sustainable Development Goals (SDGs), Digital Trade and Sustainable Global Value Chains (GVCs), and Sustainable Inclusive Industrialization through Industry. 4.0.

The Second TIIWG meeting is part of a series of activities for the 2022 G20 Presidency of Indonesia.

The G20 Summit will be held in Bali in November 2022.