D2 – Fostering and Enabling Innovative Climate Finance Mechanism

About

A. Background

Indonesia initiated the G20 Bali Global Blended Finance Alliance (GBFA), as recognized in G20 Bali Leaders’ Declaration 2022, as a platform that will provide support/facilitation for countries in pipeline creation of bankable projects and blended financing.

In the 10th World Water Forum 2024, 9 (nine) prospective founding members (PFMs); Indonesia, France, Canada, Luxembourg, United Arab Emirates, Kenya, Fiji, Sri Lanka, and Democratic Republic of Congo have signed the Letter of Intent of the Establishment of G20 Bali GBFA,  as an initial phase of developing GBFA as an international organization which aims to address the gap of climate finance, especially through South-South Collaboration.

As GBFA is envisioned to become an international organization, the nine PFMs are expected to begin the negotiation of the Articles of Agreement (AoA) as the Charter for the GBFA. The Governments of Democratic Republic of Congo, Fiji, Republic of Indonesia, Kenya, Luxembourg, Sri Lanka, and United Arab Emirates have held discussions and reached the consensus of the Articles of Agreement (or the AoA) of GBFA establishment as international organization. These countries are committed for completing their respective internal processes and agreed to sign the AoA in October and during COP29 Azerbaijan.

International bodies like the Financial Stability Board and the International Sustainability Standards Board have introduced frameworks for climate-related financial disclosures and sustainability reporting. In Indonesia, the Institute of Accountants has established a council to prepare for the adoption of these standards. Additionally, Bank Indonesia, in collaboration with the Coordinating Ministry for Maritime Affairs and Investment, has developed a free guidebook and application to help companies calculate their carbon emissions, namely Kalkulator Hijau (Green Calculator), enabling them to align with sustainability standards and attract investments for a green economy.

The Green Calculator application, developed collaboratively by Bank Indonesia and the Coordinating Ministry for Maritime Affairs and Investment, aims to assist companies in calculating their carbon emissions. This tool is crucial for promoting sustainability practices and aligning with global standards, particularly in light of Indonesia’s commitments to the Paris Agreement and the need for sustainable economic development.



B. Objective and Output

The key objectives of this session are to:

  1. Introduce and formalize the establishment of GBFA as a new international organization through the signing of the Articles of Agreement between participating countries, laying the foundation for large-scale blended finance initiatives that will drive global climate action.
  2. Launch the Green Calculator by Bank Indonesia, providing an innovative tool for SMEs to measure and verify their emissions, which will assist in the development of emissions reduction roadmaps and improve access to green finance.
  3. Highlight the role of blended finance mechanisms and innovative financial tools in closing the climate finance gap, particularly in emerging markets and developing economies.
  4. Facilitate discussions on scaling climate finance, focusing on how public-private partnerships, de-risking strategies, and financial innovation can accelerate investment in low-carbon technologies and sustainable development.
  5. Explore opportunities for SMEs to participate in climate finance frameworks, focusing on the role of emissions verification systems like the Green Calculator in supporting enterprise sustainability and competitiveness in global markets.

The session aims to deliver actionable insights and recommendations on how to leverage blended finance and innovative financial tools to foster climate action and sustainable economic growth

C. Target and Audiences

This session is aimed at:

  • Government officials and policymakers involved in climate finance, economic development, and environmental sustainability.
  • International financial institutions, development banks, and philanthropic organizations interested in contributing to or partnering with the Global Blended Finance Alliance (GBFA).
  • Private sector leaders, particularly those from the banking and finance sectors, interested in exploring innovative climate finance mechanisms and opportunities for investment.
  • SMEs and business associations looking to adopt emissions reduction strategies and participate in the green economy.
  • Non-governmental organizations (NGOs) and research institutions focusing on climate finance, sustainable development, and innovative financing mechanisms.

Multilateral organizations such as the United Nations Framework Convention on Climate Change (UNFCCC), the World Bank, and the Green Climate Fund (GCF).

D. Session Format

The session will consist of talk show, signing ceremony and launching. The talk show will run with and without presentation, discussion Q&A and recommendation 

Live Stream

Presentations

Keynote Speakers

H.E. Hashim S. Djojohadikusumo

Indonesia Presidential Special Envoy for Energy and Environment

H.E. Mari Elka Pangestu

Indonesia Presidential Special Envoy for International Trade and Multilateral Cooperation

Speakers

John Denton

Secretary-General, International Chamber of Commerce

Andrew Steer

President and CEO, Bezos Earth Fund

Sinthya Roesly

Director of Finance of PT PLN (Persero)

Jo Tyndall

Director of Environment of Organisation for Economic Co-operation and Development (OECD)

Alain Beauvillard

Director, Department of Strategy, Policy, and Innovation, Green Climate Fund

Moderator

Katherine Stodulka

Partner and Director of Global Blended Finance Taskforce at SYSTEMIQ

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