JAKARTA (TheInsiderStories) – Indonesia needs greater funding to reach climate change targets in the future. As a nationally determined contribution (NDC) target, Indonesia needs US$247 billion for the transition. But at the global level, with an average funding calculation that refers to the NDC, Indonesia needs an investment of $4.4 trillion, said a senior minister on Monday (07/15).
According to national development planning minister Bambang Brodjonegoro, it’s because Indonesia is predicted to experience a more dramatic impact of climate change in 2100, where countries temperature will increase by 1.5 Celsius and extreme weather will be more intense.
He underlined, Indonesia will experience hydro-meteorological disasters such as floods, droughts, landslides, reduced agricultural production, and limited fishing areas for fishermen, if it’s not anticipated quickly and precisely.
“If it let be go, these conditions affect Indonesia’s economic growth,” he said on the side of the Role of Green Climate Fund in Implementing the Paris Agreement and the 2030 Agenda which was held in the framework of the United Nations High-Level Political Forum 2019 in New York, United States.
Indonesia has committed to low carbon development, he said, but the transition to that vision and other responsive actions to climate change requires substantial investment, considering that in 2018, the budget allocation for climate change action was recorded at only $9.3 billion. For this reason, this year, Indonesia issued green Sukuk worth $1.25 billion.
Therefore, Indonesia still needs investment from the largest climate funding agency, the Green Climate Fund (GCF). Recently, the GCF has supported three projects in Indonesia, namely Risk Mitigation of Geothermal Resources which has the potential to reduce 112.2 million tons of carbon dioxide per year with total funding of $410 million.
In addition, the development of Bus Rapid Transit in Semarang with a total GCF grant of $788 thousand has the potential to reduce 210 thousand tons of carbon dioxide per year. As well as Climate Investor One, which has agreed to provide $100 with co-financing of $721.5 million. This project will provide funding for renewable energy projects that are expected to reduce 53.7 million tons of carbon dioxide per year.
To achieve climate change targets, Indonesia has committed to applying two big scenarios. In the moderate scenario predicting Indonesia’s GDP can be maintained at 5.3 percent by 2045 and reducing greenhouse emissions by 29 percent by 2045. Meanwhile, a more ambitious scenario predicts GDP growth of up to 6 percent by 2045 by reducing greenhouse gas emissions by 41 percent by 2030.
Basically, he revealed, the condition was in accordance with the discussion of the Special Report on Global Warming, a comprehensive report released by the Intergovernmental Panel on Climate Change (IPCC) in October 2018.
In the report reviewed about restrictions on rising global warming 1.5 Celsius requires a fast and broad transition, both energy use, land management, sustainable urban infrastructure development, including transportation, buildings, and industrial systems.
Indonesia only has 11 more years to reach the prevention target in 2030. The ministry study shows that Indonesia has at least 18,000 kilometers of coastline that falls into the category of vulnerable areas affected.
While in the maritime sector, the impact of climate change can be seen from the projected rise in sea surface temperature by 0.25 degrees Celsius in the 2006-2040 period, as well as extreme waves. This condition will affect biodiversity, causing coral reefs to bleach, and impact coastal marine life, he ended.
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