On 23 September 2022, the Government of Indonesia (GoI) submitted a new greenhouse gas emission reduction proposal as a revised 2021 proposal to the UNFCCC. Through Enhanced NDC, Indonesia has increased its target of reducing carbon emissions from 29% to 31.89% with its own efforts and 41% to 43.2% with International assistance in 2030. 

Marine ecosystems such as coral reefs, mangroves, seagrass meadows, and salt marshes, along with seaweed production sites, effectively sequester carbon dioxide. The HighLevel Panel for a Sustainable Ocean Economy estimates that ocean-based mitigation options could reduce greenhouse gas emissions by nearly 4 billion tonnes of carbon dioxide equivalent per year by 2030 and by more than 11 billion tonnes annually by 2050—exceeding current emissions from all coal-fired power plants worldwide.

Eighty percent of the life forms on Earth live in oceans, and, according to OECD, the ocean economy is expected to double to $3 trillion by 2030. “Blue finance” is a subset of green finance, dedicated specifically to ocean-friendly projects and water supply resources. Blue finance can include blue bonds, blue loans, and other water-focused investments. Blue finance is relatively new, but momentum is building. To meet demand, Indonesia is established blue financing strategy (BFS) to fulfil its mandate for optimalization financing in the blue sectors.

The strategy needed for developing and accessing a credible blue bond framework, which has become an integrated part of the SDG Government Securities Framework published in September 2021. This is one of the Indonesia’s effort to scaling-up the financing of not only green sectors, but also blue sectors to fulfil environmental commitment.

On the other hand, the GoI also has launched Indonesian Environment Fund Management (IEF) to bring multiple sources of funding together to be deployed and integrated through a variety of instruments across a number of different sectors. IEF has the legal flexibility and autonomous authority to manage its operations. The BLU structure allows IEF to disburse them alongside several other economic instruments and have flexibility on it. 

With the flexibility of IEF to manage fund from various source the need of action from various proposed long-term partnership is envisaged to sequence government of Indonesia’s priorities. This maybe becomes the solution to this problem looking the scale of the problem and the speed with which the world must act to stop climate change and the suffering it causes.