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Green facility launched to promote economy, achieves climate targets
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Climate impact – A farmer takes a look at the condition of soil in his rice paddies, which has gone dry due to a long drought, in Cot Trieng village, Muara Satu, Lhokseumawe, Aceh, on Oct.16.
(Antara/Rahmad)
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recently launched finance facility is expected to bring long-term finance to projects and companies that will eventually stimulate green growth and improve rural livelihood.
Consisting of a loan fund and a grant fund, the Tropical Landscapes Finance Facility will help Indonesia to promote economic development while at the same time contributing to the country’s climate targets under the Paris Agreement.
Steering committee chair Kuntoro Mangkusubroto said the facility would use public funding to unlock private finance in renewable energy production and sustainable landscape management that hopefully could reduce deforestation and forest degradation and restore degraded land.
“This ground-breaking and innovative financial platform, a world’s first, can transform the lives and livelihood of millions of Indonesians in rural areas that deserve it the most,” he said during the launch of the facility in Jakarta on Wednesday.
Representatives of business communities, financial institutions and civil societies attended the event.
Environment and Forestry Minister Siti Nurbaya Bakar said, “We need to ensure that our landscapes produce sustainable goods. We fully support the Tropical Landscapes Finance Facility, which is in line with Indonesia’s sustainable development aspirations.”
Meanwhile, Coordinating Economic Minister Darmin Nasution said the Indonesian government realized that the country could only achieve Sustainable Development Goals (SDGs) through holistic approaches, such as integrated landscape management.
“The Tropical Landscapes Finance Facility aims to improve smallholder productivity while at the same time conserving our natural environment.”
Key partners include BNP Paribas and ADM Capital, which will act as fund managers for the loan fund. UN Environment will manage the secretariat. BNP Paribas is a member of the UN Environment Finance Initiative. (ebf)
