The G20 is the premier forum for international economic cooperation, bringing together the world’s major economies. Several Climateworks staff – experts on just energy transition, sustainable finance and more – headed to Bali to lead, present at, attend and support discussions on climate action.
Financing a just energy transition
One of the G20’s big announcements was the Just Energy Transition Partnership for Indonesia. The partnership will seek to mobilise US$20 billion over the next three to five years to support Indonesia’s transition away from coal and toward renewables. Roughly half will be in the form of public finance, and the other half in private finance with Glasgow Financial Alliance for Net Zero expected to play a major role.
On that topic, our Indonesia Lead Guntur Sutiyono attended the ‘Just and Affordable Energy Transition for Indonesia – Energy Transition Mechanism High-Level Seminar’.
The seminar showcased the launch of the Energy Transition Mechanism (ETM) platform, a key coordination platform to drive a just and affordable energy transition in Indonesia. The platform will utilise a blended financial approach to accelerate the transition from fossil fuels to clean energy.
Indonesia has appointed PT Sarana Multi Infrastruktur (PT SMI) as the ETM platform manager together with various institutional partners including multilateral and bilateral institutions, philanthropists and private investors to develop its financing and investment framework.
Renewable energy and climate technology
Climateworks Centre supported the Renewable Energy Roundtable. The event was initiated by New Energy Nexus Indonesia, a start-up specialising in building clean energy technology ecosystems, in collaboration with the Climateworks Centre and the Clean Energy Technology Startup Community (KSTEB).
Participants included representatives from the Ministry of Energy and Mineral Resources, Ministry of Tourism and Creative Economy, the Ministry of Education and Culture, the National Agency for Research and Innovation and state-owned enterprises. From the local government, there were representatives from the City Government of Surabaya, Denpasar and Makassar. Representatives from G20, B20, F20, OECD Indonesia local programs, venture capitals, incubators, philanthropy, startups from BTI Energy, Leastric, civil society organisations, United Nations Development Programme (UNDP) and Asian Venture Philanthropy Network (AVPN) Indonesia also attended the event.
Jannata (Egi) Giwangkara moderated the discussion on elevating climate start-ups in particular, the electric vehicle industry and regional renewable energy initiatives. Panellists from the local government highlighted the area’s potential for renewable energy development. Guntur Sutiyono delivered a closing speech highlighting the opportunities and resolutions for climate tech start-ups in Indonesia. Some of the propositions include policy reformation, stakeholders collaboration and addressing market barriers.
Corporate net zero commitments in Indonesia
The team attended the Net Zero Summit by the Indonesian Chamber of Commerce and Industry (KADIN). One standout of the summit was Mr. Luhut Binsar Pandjaitan, the Coordinating Minister for Maritime and Investment Affairs highlighting Indonesia’s potential to reach net zero and urging both international and domestic investors to consider Indonesia as central to decarbonisation in the emerging markets. Several companies also showcased their commitments and sustainability-related efforts towards net zero.
Guntur moderated a side event: Advancing Climate Tech to Achieve Net Zero. The panel included Sugiarto Avina, East Venture Partner; Tanah Sullivan, Head of Sustainability at GoTo Group; and Arden Lim, Co-Founder and CPO at Aria Agriculture Indonesia. The session highlighted the challenges and opportunities for startups and tech companies to incorporate sustainability aspects and net zero plans into their business strategy.
The Business 20 (B20) Summit on 13–14 November had some similarities to the Net Zero Summit – where governments and businesses (both domestic and international) showcased their commitment to digital transformation, sustainable development and social empowerment. Guntur Sutiyono attended as part of the Victorian Government delegation. At the end of a summit, a communique was distributed and covered three main elements – innovation, inclusion and collaboration – with consensus on 25 policy recommendations and 68 policy actions.
Global cooperation and collaboration
The Bloomberg New Energy Finance Summit (BNEF) convened leaders in energy, industry, transport, technology, finance and government – underscoring the importance of global cooperation in the push towards net zero.
The summit was opened by strong remarks from Indonesia’s Coordinating Minister Mr. Luhut Binsar Pandjaitan on Indonesia’s commitment to net zero and the need for active international assistance. Several themes and topics were discussed at the summit, including climate and energy security; transition plans and finance; Paris-aligned energy infrastructure investment; collaboration and innovation as enablers; a just energy transition; global electric vehicle supply chains; voluntary and compliance carbon markets; and more. Compared to the other summits, the BNEF is more focused on the roles of technology, innovation and fit-for-purpose financing in decarbonisation. The summit stresses the importance of data to help emerging countries such as Indonesia to track their progress in decarbonisation and reach the net zero targets.
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