The Indonesian Chamber of Commerce and Industry (Kadin) held a Post COP 28 Discussion Forum at Menara Kadin Indonesia (15/12/2023). After the COP 28 Climate Change Summit was held on 30 November 2023 - 12 December 2023, Kadin Indonesia conducted a follow-up of the agreed commitments. COP 28 is a high-level conference that produces agreements in an effort to reduce greenhouse gas emissions.
There are at least four Pillars of the Presidency's Action Agenda in COP 28. Among them are accelerating the energy transition, improving climate finance, focusing on people, lives and livelihoods, and supporting all activities with full inclusiveness. As one of Indonesia's representatives to COP 28, Kadin Indonesia is also part of the promotional efforts and welcomes the financing commitments with a total value of US$83.76 billion or equivalent to Rp1.3 quadrillion.
The existing financing is expected to bring considerable impact in accelerating the handling of climate change. The climate finance financing programme includes supporting climate change mitigation and adaptation to the renewable energy development sector, as well as special funding to assist developing countries in reducing greenhouse gas emissions, and increasing resilience to climate change.
The funding is divided into three sectors: US$5 billion for renewable energy, US$3.1 billion for food, US$2.7 billion for health, and the rest for other sectors.
Support for reducing carbon emissions in the NDC Framework has been increased by Indonesia in 2022. However, Indonesia is currently preparing its Second NDC for a more ambitious emissions reduction target to be delivered by 2025. This will create opportunities for additional renewable energy capacity to reduce emissions as well as increased investment that supports the energy transition.
The United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2023 states that most investment in renewable energy flows to developed countries, with around three-quarters of all international investment finance in renewable energy in 2022 flowing to Europe. Meanwhile, developing countries have only created a 1% increase in renewable energy projects each year since 2015.
Kadin Indonesia together with the government expressed its readiness to collaborate with various parties to achieve the Net Zero Emission 2060 target, especially through climate finance that does not burden the interests of developing countries.
The United Nations Framework Convention on Climate Change (UNFCCC) 2023 reveals that developing countries need at least US$6 trillion of renewable energy investment by 2030 to fulfil less than half of the NDCs.
What is needed now is to follow up with a commitment of funds that will be disbursed for the betterment of Indonesia in the future.
