Energy Transition Finance: Possible Derisking Instruments on RE development to support the Decarbonization Process

Accelerating the decarbonization process in Indonesia will require a big amount of private and public finance, delivered in ways that respond to the needs of businesses and communities. On the public side, fiscal packages from governments are available opportunities to leverage the private sector in a transition to a low-carbon economy. Governments can also help mobilize capital from the private sector by improving investment frameworks, helping create bankable projects, and using international public financing effectively to accelerate the process. Some other derisking facilities need to be discussed to create a clean energy finance environment, reduce current perceived risks and bring down the high cost of capital. Private financial sector policies would also be crucial to channel financial flows into sustainable investments. The discussion will discuss what policies and practices are required to boost the investments needed on RE to support the transition into net zero-emission. It will start with a presentation showing the synthesis study of derisking facilities in Indonesia and some findings related to the issues. Subsequently, the discussion will respond to the results and identify how Indonesia can mobilize the capital needed to deliver zero emissions.