With the adoption in 2015 of the Paris Agreement on Climate Change and the United Nations Sustainable Development Goals, the world shifted onto a clear path to reduce greenhouse gas emissions, restore ecosystems, reduce poverty and inequality, strengthen governance systems, and improve the health and well-being of all members society. These are also in-line with the broader targets under sustainable development goals (SDGs).
These commitments can only be achieved with the full support of the private sector, and, in particular, the financial sector. By mobilizing financial institutions to adopt systems and capacity to manage environment and social risk, we can leverage the power of financier to influence and work with local businesses to address issues like poverty, pollution and ecosystem preservation.
These issues are discussed in-depth in the 2016 International Sustainable Finance Forum held on 1 December 2016, in Westin Hotel Denpasar, Bali. This is the 4th annual gathering of the Sustainable Banking Network (SBN), the global knowledge and capacity building network of emerging markets’ financial regulators, banking associations and environmental regulators who focus on advancing sustainable finance agenda, co-hosted by International Finance Corporation (IFC) and Indonesia Financial Services Authority (OJK). As other emerging markets seek to achieve similar shifts, the 2016 International Sustainable Finance Forum, showcases case studies, partnerships, and tools under the theme “Market Innovation for Sustainable Finance”. Deputy Director of UNPAD SDGs Center, Dr. Zuzy Anna, participated in the forum.
The meeting agreed that by building local awareness and capacity around low-carbon technologies and sustainable sectors, we can also attract international investment in climate Finance. Indonesia has laid out strategic work plan towards strengthening sustainable finance. This workplan comprises activities focused on increasing supply and demand of environmental-friendly (green) financing and oversight, and coordination of sustainable finance implementation.
This event was open by The Chairman of OJK, Muliaman Hadad and was attended by around 200 participants, consisted of a broad range of stakeholders, active in sustainable finance, including policy makers, regulators, financial institutions, industry bodies, international development institutions, service providers, civil society and academia. In this event, Dr Zuzy Anna (UNPAD SDGs Center), together with other representatives from academia (University of Indonesia, Bogor Agricultural University and University of Gajah Mada), formally received the training modules package on various methodology for sustainable financing particularly its application in renewable energy sector. The module, developed by OJK and USAID, is expected to be used for future training to relevant stakeholders in Indonesia.