G20 formulates supporting policies to push sustainable investment

The Indonesian G20 Presidency, through the Forum on International Policy Levers for Sustainable Investment, has formulated supporting policies to encourage sustainable financing and investment.

"This forum aims to discuss supporting policies to encourage sustainable financing and investment," Head of the Finance Ministry's Fiscal Policy Agency Febrio Nathan Kacaribu noted in a statement issued on Tuesday.

G20 is an international forum comprising 19 countries that work together to handle major issues. Indonesia is holding the presidency of the grouping this year.

The supporting policies are expected to encourage sustainable investment that backs greenhouse gas emission reduction and climate change-resilient economy transition.

The forum, held in a hybrid format from Bali, was attended by G20 members, invited guests, and international organizations, with 64 delegations participating in-person and 54 delegations participating virtually.

The discussion at the forum focused on four issues.

The first concerned effective emission pricing tool and mechanism formulation recommendations that support a low-carbon-emission-based economic transition. Canada, the European Union, and the Netherlands made presentations on the topic.

The second concerned non-price tools that support the transition to a low carbon climate. The People's Republic of China, the United States, and South Korea made presentations on the topic.

The third covered the sustainable energy transition financing policy and ways to bridge the gap in transformative technological financing. Speakers from Argentina, Germany, and Indonesia covered the issue.

The fourth was about understanding the distributive implication of the general policy support directed at transition financing mobilization. Brazil and England made presentations on the topic, and all countries also shared their own experiences on the subject.

In addition to countries sharing their experiences and best practices, several international organizations and knowledge partners also delivered materials concerning related issues.

The core message from the forum was summarized and will serve as an input for the third meeting of the G20 Finance Ministers and Central Bank Governors in July in Bali.

The Indonesian G20 Presidency is committed to ensuring collective action and bringing concrete results within the Sustainable Finance Working Group (SFWG) to reach the 2030 Agenda for Sustainable Development Goals and Paris Agreement.

“The strategy for energy transition became the main key from economic transformation toward sustainable and resilient development course," Kacaribu said.

Source: Antara News