The G20 nations are currently developing consensus or agreements related to sustainable finance, Head of the Finance Ministry's Fiscal Policy Agency Febrio Kacaribu has said.
The implementation of sustainable finance will continue despite the current increasing global challenges, not only due to the pandemic, but also from the war in Ukraine, Kacaribu added.
"Actually in the G20 and G7, the push for a sustainable finance agenda and also more specifically, the financial transition, is getting stronger," he noted at the CSIS Global Dialogue 2022 here on Thursday.
Both G20 and G7 countries are encouraged to build consensus on sustainable finance amid the war in Ukraine and price inflation, including rising energy prices, he emphasized.
According to him, the crisis has encouraged G20 countries, especially the G7 in Europe, to allocate sustainable funds to accelerate the energy transition.
He said that European countries have been impacted by rising energy prices due to the war in Ukraine. For instance, Germany is intending to accelerate the transition to greener energy.
"And this is an excellent development in the G20 Sustainable Finance Working Group (SFWG)," Kacaribu said.
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The discussions on sustainable finance are currently being led by the United States and China, who are discussing sustainable funding for their own countries and developing countries.
Currently, about 68 percent of Indonesia's electricity needs and those of most Asian countries are still met by coal-based energy, Kacaribu pointed out.
"But again, the transition from fossil fuel energy to greener energy is critical. Not only in the long run, but it must also be accelerated starting today for the medium term," he said.
According to the G20 SFWG website, the Sustainable Finance Working Group will discuss three key topics in 2022, which are aimed at developing a framework for transition finance, improving sustainable finance instruments, as well as determining policy levers for investment to support the transition.
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