Therefore, the world needs to make a transition towards a sustainable economyJakarta (ANTARA) - As many as 1.5 billion workers will be affected by climate change, based on a study by the United Nations Framework Convention on Climate Change (UNFCCC), Minister of Finance Sri Mulyani Indrawati has said.
"Therefore, the world needs to make a transition towards a sustainable economy," she remarked during an online discussion originating from Jakarta on Thursday.
However, every country cannot face climate change alone, so collaboration is needed, she stressed.
One such global collaboration to fight climate change has taken the form of the Sustainable Development Goals (SDGs), under which all countries have committed to contributing to reducing carbon emissions, she pointed out.
In addition, the world is also collaborating through the signing of the Paris Agreement on net-zero emissions, she added.
"Countries jointly convey their respective side's commitments to reduce carbon emissions and this is called Nationally Determined Contributions (NDC)," she explained.
According to the minister, in the NDC each country has a different starting level and a different CO2 contribution.
As a result, the responsibility for reducing carbon emissions is different for different countries, she said.
Under the Paris Agreement, Indonesia has committed to reducing CO2 by 29 percent through its own efforts and 41 percent with international assistance, especially from countries that have better access to technology and finance, she pointed out.
Indonesia will need an investment of Rp3,779 trillion, instead of Rp3,461 trillion projected earlier, to address climate change and reduce carbon dioxide emissions by 2030, the Finance Minister had said earlier.
"It is an extraordinary high number and that's only for needs in Indonesia," she said during an online discussion.
Thus, Indonesia will need an investment of US$365 billion, with the government's contribution pegged at 26 percent, she noted.
"This is an extraordinary number. But, if we want to reduce carbon dioxide even higher by up to 41 percent, then the investment requirement will reach US$479 billion," she remarked.
Tackling climate change requires policies and frameworks involving collaboration between the government, the private sector, and the global community to meet the cost needs of the handling, according to the former managing director of the World Bank.
The Indonesian government is mulling several solutions and policies to tackle climate change, including policies on carbon pricing, carbon markets, and carbon taxes, Indrawati informed.
A budget tagging scheme has been introduced in the state budget (APBN) to encourage transparency and establish a climate change budget, she said.
The government has also diversified Indonesia's financial instruments for climate change, she added. This has been an achievement for Indonesia and has brought it global attention, she remarked.
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Translator: Agatha, Azis Kurmala
Editor: Sri Haryati
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