Climate-Aligned Investments and Policy Nexus in Indonesia: Unlocking transition finance for achieving net-zero emissions

This report highlights opportunities for Indonesia to strengthen its financial system in support of national climate and sustainability goals. It acknowledges the important steps such as the issuance of the Enhanced NDC in 2022, the development of green taxonomies and the implementation of sustainable finance regulations.

The report outlines key challenges, including the presence of overlapping policies and a misalignment between the financing needs of climate projects and the capacity of financial institutions to meet them.

It also puts forward a set of policy recommendations focused on improving regulatory coherence, enabling transition finance, and expanding access to long-term financing options