"The GBFA will mobilize blended finance, a strategic tool to bridge the financing gap for climate (projects) and SDGs," he said at the launch of the GBFA secretariat in Nusa Dua, Bali, on Monday.
The GBFA was adopted by leaders of the G20 Bali Summit to accelerate climate investment in developing countries, least-developed countries, and island countries.
Its main focus is on Global South cooperation and transition financing.
The GBFA will support countries in designing and implementing appropriate policies and developing institutional structures, technology, and data, as well as financing solutions for the transition to achieve the SDGs.
"The GBFA will facilitate G20 principles on blended finance and country-led policy development that should prioritize our needs, establish key partnerships," Luhut remarked.
He also invited representatives of countries attending the event to bolster international cooperation through various forums, including the next G20 Summit, which will be held in Rio de Janeiro, Brazil.
"Together, we can build a brighter, more sustainable future for all," Luhut said.
He also underscored that the climate crisis is an important issue for all countries in the world.
According to the UAE COP28 consensus, each party is committed to carrying out an energy transition from fossil fuels to accelerate the reduction of emissions based on the nationally determined contribution (NDC).
Luhut said that there is the challenge of climate change and a need to close large projects because there is a climate funding gap. For this, the GBFA can serve as a solution.
For instance, the GBFA will also support water conservation programs and bridge the gap between available public resources and the massive investments required by the Global Water Fund.
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Translator: Putu Indah, Raka Adji
Editor: Anton Santoso
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