Green financing for climate resilience and low-carbon development in Indonesia: viewpoints for the road ahead

Rakatama, Ari; Maharani, Dinda Ayu; Syafrian, Dzulfian; Yuniarti, Fauziah Rizki

Abstract

The Indonesian Government has set ambitious climate targets and commitments, and now appropriate climate action is needed to achieve these targets. This viewpoint article identifies gaps in financing to achieve Indonesia’s climate commitments and suggests funding mobilisation strategies for climate action; it also recommends policy options to utilise available funding effectively and efficiently. It was estimated that realising climate commitments requires up to USD 276 billion in total, and the financing gap to realise this is around 53 per cent. To achieve the climate target, the government needs appropriate financing strategies. Securing funding from national and international sources, as well as from public and private sources, is critical to filling the gap and establishing financial source diversification. The limited state budget must be optimised through financial instruments such as green bonds, carbon pricing, and fiscal transfers. International financial sources must also be mobilised through bilateral, regional, and multilateral channels.

Citation

Rakatama, A., Maharani, D. A., Syafrian, D., & Yuniarti, F. R. (2023). Green financing for climate resilience and low-carbon development in Indonesia: viewpoints for the road ahead. Development in Practice, 34(8), 1048-1057 . https://doi.org/10.1080/09614524.2023.2295790

• Journal Article Type: Article
• Acceptance Date: Dec 3, 2023
• Online Publication Date: Dec 27, 2023
• Publication Date: Dec 27, 2023
• Deposit Date: Oct 15, 2024
• Journal: Development in Practice
• Print ISSN: 0961-4524
• Electronic ISSN: 1364-9213
• Publisher: Taylor and Francis Group
• Peer Reviewed: Peer Reviewed
• Volume: 34
• Issue: 8
• Pages: 1048-1057
• DOI: https://doi.org/10.1080/09614524.2023.2295790
• Public URL: https://durham-repository.worktribe.com/output/2957905
• Additional Information: Peer Review Statement: The publishing and review policy for this title is described in its Aims & Scope.; Aim & Scope: http://www.tandfonline.com/action/journalInformation?show=aimsScope&journalCode=cdip20; Received: 2023-08-08; Accepted: 2023-12-03; Published: 2023-12-27