Pandjaitan also asked countries not to take a "business as usual" approach regarding climate finance. The common business model which demands a return on capital will burden developing countries.
Jakarta (ANTARA) - Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan has emphasized the importance of financing collaboration between developed and developing countries to overcome the climate crisis.

He conveyed the statement in a video message at the COP28 event in Dubai, UAE, on Saturday (December 2) during a discussion on the latest development of the Indonesia Just Energy Transition Partnership (JETP).

"Again, I'd like to emphasize I think the collaboration between developing countries and developed countries is very important in this program," he remarked, according to a statement here on Sunday.

JETP is a clean energy transition partnership to mobilize US$20 billion that involves Indonesia and countries of the International Partners Group (IPG) consisting of the US, Japan, Canada, Denmark, the European Union, Germany, France, Norway, Italy, and the UK.

According to him, the launch of the Comprehensive Investment and Policy Plan (CIPP) of JETP marks Indonesia's milestone in tackling the climate crisis and shows the collaboration between Indonesia, as a developing country, and developed countries.

Pandjaitan also asked countries not to take a "business as usual" approach regarding climate finance. The common business model which demands a return on capital will burden developing countries. Unfortunately, currently available climate finance largely adopts this approach.

The minister assessed that better ways to mobilize and share technologies and capital are needed so that developing countries can continue to grow and develop.

United States Special Presidential Envoy for Climate John Kerry stated that there is no one general solution approach because what is needed is a tailored solution approach.

Group Chief Executive of Standard Chartered, Bill Winters, explained that the government and the financial sector must unite to help facilitate investment in the developing country market.

Meanwhile, President's Special Envoy in Global Blended Finance Alliance Mari Elka Pangestu stated that JETP provides opportunities to make breakthroughs in climate finance.

She remarked that Indonesia has shown commitment to providing a holistic transition pathway framework. This, she continued, needs to be balanced with financing that is in line with the objectives and funding from IPG and from the private sector.

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Translator: Ade Irma, Raka Adji
Editor: Arie Novarina
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