A G20 seminar series, co-hosted by Climateworks Centre in Jakarta, has explored innovative approaches to financing that can help emerging economies to transition to renewable energy in a fair and sustainable way.

The G20 is the premier forum for international economic cooperation, bringing together the world’s major economies.

The seminar series, held on 27 July, was one of a number of G20 events being held ahead of the G20 leader’s summit in November.

A group of people stand in front of a wall-sized screen displaying the text  'Unlocking Innovative Financing Schemes and Islamic Finance to accelerate a Just Energy Transition in Emerging Economies'.
Asia Investor Group on Climate Change CEO Rebecca Mikula-Wright, International Institute for Sustainable Development Senior Director Peter Wooders, Indonesian Minister of Energy and Mineral Resources H.E. Arifin Tasrif, Executive Director of Indonesia Research Institute for Decarbonization Moekti Handajani Soejachmoen, Vice President of the Republic of Indonesia H.E. Ma’ruf Amin, Executive Director of Institute for Essential Services Reform Fabby Tumiwa, Minister of Finance of the Republic of Indonesia H.E. Sri Mulyani Indrawati, CEO of Climateworks Centre Anna Skarbek, Chair of G20 Energy Transition Working Group Yudo Priaadi and CEO of Centre for Policy Development Andrew Hudson at the G20 seminar series.

In opening the event, G20 Energy Transition Working Group (ETWG) Chair Yudo D. Priaadi said the energy transition was one of the most important issues globally and in Indonesia, and the topic was a priority for Indonesia’s G20 presidency.

‘It is time for the G20, as the major energy producer and consumer, to step up our cooperation and collaboration,’ he said.

The event was held by the G20 ETWG, G20 Indonesia 2022 and T20 Indonesia, in collaboration with Climateworks, the Centre For Policy Development (CPD) Australia, International Institute for Sustainable Development (IISD), Indonesia Research Institute for Decarbonization (IRID), and the Institute for Essential Services Reform (IESR), supported by Asia Investor Group on Climate Change (AIGCC).

Keynote speakers underscore need for finance

Keynote speakers included Indonesia’s Vice President Ma’ruf Amin and Chairman of the Board of Commissioners of the Indonesian Financial Service Authority Mahendra Sirega.

Other keynotes were delivered by Energy Minister Arifin Tasrif, who noted that completing Indonesia’s energy transition would require an investment of $USD 1 trillion, and Finance Minister Sri Mulyani Indrawati, who spoke of the affect climate change would have on Indonesia’s population, 65 per cent of whom live in coastal areas.

‘Climate change poses a very serious and real threat for our people, as well as to our economy,’ she said.

YouTube playlist of G20 seminar series ‘Unlocking innovative financing schemes and Islamic finance to accelerate a just energy transition in emerging economies’.

The Finance Minister outlined Indonesia’s recently announced Energy Transition Mechanism (ETM) Country Platform which, she said, ‘serves as a framework to provide the necessary financing for acceleration of the national energy transition and also as a platform to mobilise both commercial as well as non-commercial funding sources in a sustainable manner’.

Indonesia will showcase the Country Platform at the G20 leader’s meeting and at COP27.

The integrated ETM is designed to facilitate new renewable energy projects while hastening the closure of some of the country’s coal-fired power stations.

Panel discusses matching appetite with need

Climateworks CEO Anna Skarbek hosted a panel discussion exploring the role of non-state actors and Islamic finance in financing the transition, one of three panel discussions on the day.

A woman sits in an armchair in front of a wall-sized screen, speaking into a handheld microphone.
Anna Skarbek said both public and private finance providers were increasingly looking to align their funding with the Paris Agreement.

In her opening remarks ahead of the discussion, Anna noted that the Glasgow Financial Alliance for Net Zero (GFANZ), which recently launched its Asia-Pacific Network, is keen to support Indonesia’s Country Platform. Anna recently joined GFANZ’s newly-formed Asia-Pacific Advisory Board.

She said, increasingly, both public and private finance providers want to align their funding with the Paris Agreement and the Sustainable Development Goals.

‘Our focus here today is on how to build capacity and investment vehicles to match the appetite with the need,’ she said.

Participants in the panel discussion included:

  • Ir. Satya Widya Yudha, member of Indonesia’s National Energy Council
  • Rebecca Mikula-Wright, CEO of the Asia Investor Group on Climate Change
  • Martijn Wilder AM, CEO of Pollination Group
  • Jenn-Hui Tan, Global Head of Stewardship and Sustainable Investing for Fidelity International
  • Rizky Budinanda, Group Head Investor Relations at Ban Syariah Indonesia
  • Pradana Murti, Risk Management Director at PT Sara Multi Infrastruktur (PT SMI). PT SMI is managing Indonesia’s Country Platform through the Energy Transition Mechanism.

In concluding the session, Anna Skarbek thanked the participants, noting it had been an ‘excellent discussion’.

‘What we have heard is great alignment on the shared goals and an increasing expertise in terms of the analytics,’ Anna said.

‘I think we have achieved our objective of setting out what this Energy Transitions Working Group can work on together, and I think each of the private and the public agencies that we’ve heard from today knows that there’s much more to do.

‘I look forward to seeing you continue to contribute and help us achieve these goals — and achieve them early if we can.’

Read more on climate solutions: