Jayanty Nada Shofa, Jakarta – Chief Investment Minister Luhut Binsar Pandjaitan on Tuesday said that the world should put their words into action on carbon emission reduction, among others, by establishing global blended finance for decarbonization.

"We often talk [about decarbonization], but we have not seen actual results from our efforts in limiting the global temperature rises to 1.5 degrees Celsius," Luhut told the Ecosperity forum in Singapore on Tuesday.

"So I call upon everyone to take concrete actions. This is something that can be done in Indonesia because we have tons of projects," Luhut said.

Indonesia has made a roadmap on how the country plans on achieving net zero emissions without affecting growth for people's prosperity, according to Luhut.

Under the net zero emission roadmap, Indonesia is trying to shift from fossil fuel to renewable energy. The resource-rich country is also working on its electric vehicle (EV) ecosystem. Indonesia has banned the export of unprocessed ores of nickel, a mainstay ingredient for batteries. Indonesia even plans on developing a battery recycling industry.

Luhut, however, admitted financing has become a barrier to those net zero emission efforts. "Many have come to offer [financing]. but they offer commercial interest rates," Luhut said.

"What we can all do together is to establish global blended finance. Global warming is a global problem and no country can address it alone," the minister added.

This is not the first time that Indonesia brought up the challenge of financing climate goals.

President Joko "Jokowi" Widodo even told the recent G7 Hiroshima Summit that rich countries have yet to fulfill their $100-billion climate finance pledge.

"Mr. President [Jokowi] told [the G7 Summit] that developing countries are doubting the developed economies' commitment. Their promise of $100 billion in [climate] finance a year remains unfulfilled," Foreign Affairs Minister Retno Marsudi said in a recorded press statement.

"He stated that climate finance must be constructive, and not loans," Retno said.

Indonesia last November launched the Global Blended Finance Alliance at the Tri Hita Karana Forum in Bali. According to a separate ministerial press release, the alliance aims to hone governments, the private sector, and philanthropic bodies' capacities in undertaking blended finance.

Jokowi is scheduled to talk about net zero cities on the second day of the Ecosperity forum. Jokowi will speak of Indonesia's "forest city" vision for its new capital Nusantara.

Source: https://jakartaglobe.id/news/lets-walk-the-talk-on-decarbonization-luhu