06 Sept 2024 | Indonesia International Sustainability Forum

Marves – Jakarta: The impact of climate change demands immediate action and substantial financial investment. To address this, innovative funding mechanisms and commitment from various stakeholders—including governments, the private sector, and communities—are essential. The Global Blended Finance Alliance (GBFA) aims to meet this need.

“I am firmly convinced that the Global Blended Finance Alliance (GBFA), initiated by the Government of Indonesia together with eight prospective founding members, serves as a strategic tool to bridge the financing gap for climate action and achieve the SDG targets,” stated Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut B. Pandjaitan during the Thematic Session at the Indonesia International Sustainability Forum (ISF) 2024 in Jakarta, Friday (6/9).

Minister Luhut added that the GBFA can fulfill the real need to advance energy transition, climate action, and the Sustainable Development Goals (SDGs).

This optimism aligns with the Global Climate Finance Framework declaration to mobilize climate finance for developing countries, as announced during the UN Climate Change Conference, COP28 in Dubai last year. The blended finance system was endorsed to unlock private capital for enhancing climate action. “This commitment aligns with the GBFA initiative, and we plan to present it at COP29 in Baku for further development of concrete projects and to attract new potential members,” explained Minister Luhut.

GBFA envisions itself as an International Organization that will assist developing countries in creating Country-Led Platforms featuring SDG- and climate action-related development projects structured to attract investor funding.

Minister Luhut further emphasized that GBFA will also support South-South Collaboration to achieve SDGs and climate transition. From September 1–3, Indonesia hosted the 3rd Indonesia-Africa Forum (IAF) to strengthen economic cooperation and explore partnerships in food security, trade, investment, and energy.

“Strategic collaboration with knowledge partners is crucial as it will support the GBFA program design, facilitate funding mobilization, and advance its activities and mission,” stated Minister Luhut.

In line with fulfilling the role of knowledge partners, Minister Luhut also witnessed the signing of a Memorandum of Understanding (MoU) between the Government of Indonesia, represented by Deputy for Coordination of Environmental and Forestry Management, Kemenko Marves, Nani Hendiarti, and the President of United in Diversity, Tantowi Yahya, marking GBFA’s first knowledge partnership. Furthermore, on September 26, 2024, an MoU signing with additional knowledge partners such as OECD, TBI, Systemiq, UNDP, and WRI will also take place in New York during the UN General Assembly (UNGA).

Source: https://maritim.go.id/detail/menko-luhut-optimistis-gbfa-bisa-atasi-perubahan-iklim