Sri Mulyani: Sustainable Finances Are Important To Overcome Climate Change Challenges

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

Minister of Finance (Menkeu) Sri Mulyani said that many countries are now facing challenges in providing sustainable financing to overcome various dynamics, such as climate change.

Many people have predicted what is needed to save the world from the threat of climate change. Sustainable finance is one of the most important things. And we all know that the need to mobilize financing is very important," he said at the Indonesia Sustainability Forum 2023 as reported by the official website today, Friday, September 8.

The Minister of Finance gave an example, Indonesia with 5 percent economic growth makes energy demand continue to increase. This then demands a solution on how to reduce carbon emissions without affecting the growth process itself.

"We have to invest more in renewable energy, there are also suggestions to stop the use of coal early," he said.

The Minister of Finance noted, based on the results of discussions at the United Nations Framework Convention on Climate Change (UNFCC) in COP26 in Glasgow, Indonesia is expected to reach a Nationally Determined Contribution (NDC) in reducing CO2 by more than 42 percent with international cooperation, which will require 280 billion US dollars. This financing will be obtained from the APBN, the issuance of green sukuk, and also opens partnerships with blended finance.

On this occasion, the Minister of Finance also hopes that every international forum that discusses sustainability will provide good results.

"Because if not, then we will discuss sustainability forums in many different places, everyone flies, adds CO2 but doesn't give results, and we create a worse situation for the world. So every meeting we have to have ambitions that progress needs to be achieved and where problems that actually need to be resolved," he concluded.