Energy transition and climate change were the main topics discussed at the 2024 IMF-WBG Spring Meetings in Washington DC, United States last week.
At the High Level event Navigating the Mid-transition Period of The Low Carbon Shift initiated by the Brookings Institute, Minister of Finance Sri Mulyani Indrawati acknowledged that the process of a just and affordable energy transition is quite complex.
According to him, to achieve the energy transition, the role of the Ministry of Finance (Kemenkeu) is very important in formulating a financing policy framework, providing innovative instruments that can encourage mixed financing schemes, and building cooperation at regional and global levels.
“The Ministry of Finance needs to ensure a sound and prudent fiscal policy to obtain sources of financing for the energy transition,” said Sri Mulyani in an official statement, Tuesday (23/4).
In the policy framework, said Sri Mulyani, a sustainable financing taxonomy at the regional level such as ASEAN is needed which provides signals and allows the private sector to participate in energy transition investments.
He also emphasized the urgency of strengthening international cooperation, including following up on joint commitments such as through the Just Energy Transition Partnership – Indonesia (JETP Indonesia), which is an achievement of the Indonesian G20 Presidency.
Also read: The Millennial Generation Must Understand the Financial Crisis
Discussions regarding the energy transition and climate change were also discussed at the Ministerial Meeting of the Coalition of Finance Ministers for Climate Actions (CFMCA). On that occasion, Sri Mulyani led a coalition with the Dutch Minister of Finance.
He conveyed several main issues, including the role of the Ministry of Finance in supporting the achievement of Nationally Determined Contribution (NDC) targets as well as efforts to mobilize global markets to finance the energy transition.
Sri Mulyani highlighted the importance of real involvement of Ministers of Finance from all over the world in the process of preparing and implementing each country’s NDC targets, especially in designing macroeconomic policy frameworks and fiscal policies that integrate climate action priorities.
Also read: Minister of Finance Emphasizes the Importance of Rejuvenating Multilateral Cooperation
“Coordination between the Ministry of Finance and the Ministry of Forestry and Environment is also emphasized in the process of preparing and implementing the achievement of NDC targets,” he said.
In the series of 2024 IMF-WBG Spring Meetings in Washington DC, Minister of Finance Sri Mulyani Indrawati also attended the meeting of Ministers of Finance and Governors of the G-20 Central Bank (FMCBG).
At the G-20 Working Dinner, Sri Mulyani said that future climate planning must prioritize inclusiveness and justice in line with the G-20 Transitional Financial Framework.
In her intervention, Sri Mulyani assessed that the blended finance scheme was important for mobilizing funding sources and international support. He also emphasized the importance of developing carbon credit instruments as additional incentives that can attract more private sector participation to invest.
“Strengthening the role of Multilateral Development Banks (MDBs) is also needed, including in managing and reducing risks so that they are able to attract more financing from the private sector,” he stressed. (Z-11)
#Energy #Transition #Climate #Change #Main #Topics #IMFWorld #Bank #Meeting
