Jakarta (Indonesia Window) – The development of green infrastructures requires investment funds of 6.9 trillion U.S. dollars per year to achieve the Paris Agreement target by 2030, Head of the Fiscal Policy Agency at the Indonesian Ministry of Finance, Febrio Kacaribu, has said.
“Around 6.3 trillion U.S. dollars is needed annually for infrastructure investment to meet the sustainable development goals by 2030, and even increase to 6.9 trillion dollars per year to achieve the Paris Agreement targets,” Febrio said in a webinar on ‘Post-Pandemic Infrastructure in The G20’ here on Friday (Feb. 18).
Under the Paris Agreement, Indonesia is committed to reducing carbon emissions by 29 percent in 2030 on its own, and 41 percent with international assistances.
Infrastructure investment is also prioritized towards an inclusive and sustainable economy.
According to Febrio, green infrastructure development is needed to and sustain Indonesia’s economic recovery after being affected by the COVID-19 pandemic.
Green infrastructure is also the backbone of the global economy, but the landscape is changing rapidly due to the pressures of the complex climate crisis and pandemic, making it difficult for countries around the world to meet their infrastructure development targets by 2050.
“The COVID-19 pandemic has disrupted the flow of investment into infrastructure development. The shrinking fiscal space has forced the governments to focus their limited resources on urgent needs related to the pandemic,” Febrio explained.
On the other hand, private investment in infrastructure projects has been hampered by delays or cancellations.
He hoped that the coordinated efforts of the leaders of the G20 member countries to increase investment in sustainable infrastructures could increase investors’ confidence to re-mobilize the private sectors.
Reporting by Indonesia Window