Minister of Finance Sri Mulyani Indrawati has unveiled a significant surge in costs borne by developing nations to avert climate change disasters.
Sri Mulyani took to her Instagram account, @smindrawati, on Wednesday (23/6/2023) to highlight the escalating expenses associated with climate change mitigation. It is worth noting that she is currently attending the Paris Summit 2023, where she participated in the Meeting on A New Global Financing Pact for Climate Change on Thursday (22/6/2023).
Drawing from the writings of Nick Stern, a former economist at the World Bank, and Amar Battachara, a professor at the Grantham Research Institute on Climate Change and the Environment, Sri Mulyani emphasized the imperative of climate change investments ranging from US$ 500 billion to US$ 1 trillion or Rp 7,500 trillion to Rp 15,000 trillion (at a US$ 15,000 exchange rate) from 2019 to 2025.
These projections indicate that the costs will soar to US$ 2.4 trillion or Rp 36,000 trillion by 2030. However, these figures have witnessed a sharp increase in the aftermath of the Covid-19 pandemic.
In her statement on Thursday (23/6/2023), Sri Mulyani pointed out that “post-pandemic, the required investment value has grown larger, reaching US$ 5.3 trillion. For perspective, Indonesia’s current GDP is around US$ 1.24 trillion.”
Underscoring the importance of striking a balance between sustainable development goals and climate change mitigation, Sri Mulyani asserted that these objectives should not necessitate trade-offs between poverty alleviation efforts and environmental concerns. She added, “Every country has sovereignty and measures to address climate change.”
Consequently, she emphasized the need for concerted efforts and reforms from multilateral institutions to provide comprehensive support to developing nations in their pursuit of sustainable development.
While acknowledging the vital role of the private sector, Sri Mulyani stressed the importance of addressing risks and employing catalytic instruments to facilitate the achievement of these goals.
Moreover, she highlighted the necessity of establishing robust monitoring mechanisms and ensuring accountability to ensure the commitment of developed nations and the global community in financing and implementing climate change programs. “This is a significant and important agenda discussed at the Paris Meeting,” she further commented.
Recognizing the universal threat posed by climate change, Sri Mulyani emphasized the indispensability of global cooperation. However, she acknowledged that achieving such collaboration is not without its challenges, particularly in an increasingly fragmented world.
In conclusion, Sri Mulyani reiterated Indonesia’s unwavering commitment to actively and constructively participate in preserving global order and security based on principles of eternal peace, independence, and social justice.
