We have formulated policies that are capable of attracting a lot of investment to build those sectors, so that those five sectors can achieve their CO2 reduction targetJakarta (ANTARA) - Indonesia's efforts to cut carbon emissions are dependent on five primary sectors -- forestry, energy as well as transportation, waste, farming, and industry, Finance Minister Sri Mulyani Indrawati has said.
"We have formulated policies that are capable of attracting a lot of investment to build those sectors, so that those five sectors can achieve their CO2 reduction target," Indrawati said during an online discussion here on Thursday.
Each of the five sectors has a different carbon emission reduction target, she noted.
The forestry sector is targeting to reduce emissions by up to 17 percent, while the energy and transportation sector is trying to cut emissions by up to 11 percent, she informed.
The waste, farming, and industry sectors are targeting to reduce carbon emissions by 0.38 percent, 0.32 percent, and 0.1 percent, respectively, she said.
"(Efforts to fulfill) Indonesia's commitment to reach Net Zero Emission by 2060 have to be done consistently," Indrawati asserted.
Hence, large funding is required in addition to hard work and policies to reduce carbon emissions, she said.
One of the sectors that will require very large funding is energy and transportation due to the energy transition from non-renewable energy to renewable energy, she explained.
"All of this requires a very large investment cost and cannot be done solely through the state budget. It even cannot be done by Indonesia alone," Indrawati pointed out.
The finance minister revealed that in order to tackle climate change, Indonesia would need Rp3.461 trillion, or equivalent to US$266 billion, until 2030.
"This means that our ministries/institutions' spending has only covered around 21 percent of the fund required to achieve the Paris commitment or Net Zero Emission by 2060," she remarked.
Related news: Minister outlines strategies for meeting carbon neutral target by 2060
Related news: Fossil energy increases CO2 and greenhouse gas emissions: UI professor
Related news: Economic growth should be based on building climate resilience: IESR
Translator: Agatha Victoria, Fadhli Ruhman
Editor: Sri Haryati
Copyright © ANTARA 2021
