The Government of the Republic of Indonesia, which in 2022 holds the mandate of the Presidency of the G20, has announced the issue of the energy transition as one of the main agenda priorities of this year’s G20. Among many facets of this topic, one of the most challenging is unlocking the scale of financing required. Without adequate and workable financing, the energy transition will not happen.

On the road to the G20 Summit, the Energy Transition Working Group (ETWG) Indonesia G20 2022 and T20 Indonesia, in collaboration with the Centre For Policy Development (CPD) Australia, Climateworks Centre, International Institute for Sustainable Development (IISD), Indonesia Research Institute for Decarbonization (IRID), and the Institute for Essential Services Reform (IESR), supported by Asia Investor Group on Climate Change (AIGCC), are organizing a G20 pre-event workshop on “Unlocking Innovative Financing Schemes and Islamic Finance to Accelerate a Just Energy Transition in Emerging Economies.”

This event is intended to explore a complete picture of the additional policies and financing mechanisms required to finance the energy transition as a basis for starting discussions or negotiations on a comprehensive package with government and non-government actors. The financing aspects to be discussed not only include the transition of the energy and electricity system to clean sources, but also other non-project financing including employment transition, safeguarding the budget, and social safety nets.

The agenda for this Seminar Series will cover four focus areas: (1) increasing public financing for the energy transition; (2) unlocking more private financing for energy transitions; (3) ensuring comprehensive financing of the energy transition (non-project financing, financing of the social impacts of the energy transition); and (4) innovative approaches such as Islamic financing (waqf, sukuk).

This event will be a combined in-person and on-line seminar, and is intended to bring international experts and policy makers to have a close dialogue with international financial communities, think tanks, academics, and financial media.

This session will seek to explore understanding and listing the needs for inclusive energy transition financing becomes the main topic of discussion. This session takes the opportunity to brainstorm on how we can quantify and finance the required non-project costs.

Addressing local and regional economic burdens arising from the transition away from fossil fuels and the potential closure of emissions-intensive assets as well as helping communities navigate the new opportunities are among the recommended actions that the Government shall consider.