Paris Summit 2023 Reveals No Ideal Investment In Energy Transition Investment

Photo: Instagram @smindrawati

JAKARTA Minister of Finance (Menkeu) Sri Mulyani this week continued her work agenda in Europe by attending the Paris Summit 2023 meeting. It was stated that the Minister of Finance was involved in a dialogue on Private Capital Mobilization for Climate Investments in developing countries.

The state treasurer revealed that this event brought together the leaders of multilateral development banks, leaders of financial institutions who are members of GFANZ (Glasgow Financial Alliance for Net Zero), and related government officials.

Located in Palais Brongniart, a monumental historic building in the heart of Paris. In the past, this was where the pulse of financial activity in the French capital was centered, including the Paris Bourse stock exchange which is now called Euronext Paris," he said on Friday, June 23.

According to the Minister of Finance, he and world financial leaders discussed the various most effective models and approaches to drive private investment in the climate sector, especially in developing countries. He said, the Energy Transition Mechanism (ETM) Country Platform, which was launched at the G20, was one of the discussion points for his lessons learned.

"I convey the progress and challenges of the financing scheme to retire the coal-based PLTU. The private sector has problems participating because it is related to taxonomy taxation, which we must overcome," he said.

The Minister of Finance added that another challenge is that the cost of borrowing is still high. In addition, investment in infrastructure to distribute energy also needs to be a concern.

"I specifically thank Janet Yellen and her entire team for supporting Indonesia in facing various challenges in the implementation of ETM, including in the capital market sector. Hopefully in the next Annual Meeting we can see meaningful progress. From the High-Level Roundtable Discussion on Private Capital Mobilization for Climate Investments in Emerging Markets and Development Countries (EMDCs)," closed the Minister of Finance Sri Mulyani.