Jakarta (VNA) - Indonesia will require 757.6 billion USD in climate financing by 2035 to meet its climate-action commitments under the Enhanced and Secondary Nationally Determined Contribution (NDC), highlighting a major funding gap as current climate spending accounts for only 3% of the state budget.
National Development Planning Minister Rachmat Pambudy presented the figure during an event in Jakarta, noting that climate-related allocations remain modest compared with the magnitude of the country’s decarbonisation and adaptation objectives.
He said that on average, government climate expenditure between 2016 and 2024 stood at 4.4 billion USD per year, or about 3% of the state budget. This means there is still a very large climate-financing gap.
He stressed that to close the gap, Indonesia must improve governance readiness and accelerate programmes and projects capable of mobilising large-scale investment. Investment is crucial to advancing technology, innovation and knowledge, foundations that will allow Indonesia to fast-track its low-carbon transition and climate resilience.
On December 2, the government officially launched the Innovation and Technology Fund (ITF) a financing mechanism designed to support low-carbon development programmes at the provincial level.
Rachmat said the ITF will function as a financing bridge to spur climate innovation, strengthen technological solutions and support projects that deliver multiple long-term benefits for mitigation and adaptation.
The ITF will be distributed through the Innovative Development Fund, which is expected to contribute to broader national development targets./.
