Green Infrastructure Investment Opportunities: Indonesia-Green Recovery 2022 Report

This report explores green bonds and other finance instruments for climate-resilient infrastructure in Indonesia to meet the growing demand for green investments and achieve a low-carbon economy.

Format: Paperback / softback
Length: 30 pages
Publication date: 30 October 2022
Publisher: Asian Development Bank

This comprehensive report delves into the realm of green bonds and other financial instruments, exploring their potential as powerful tools in fostering climate-resilient infrastructure and contributing to the realization of a low-carbon economy in Indonesia. In collaboration with esteemed experts, including the Asian Development Bank (ADB), the ASEAN Catalytic Green Finance Facility, and PT Sarana Multi Infrastruktur, under the guidance of Indonesia's Ministry of Finance, the Climate Bonds Initiative (CBI) has diligently compiled this updated edition, following previous editions released in 2018 and 2019. This report forms part of a series of insightful publications crafted by CBI, aimed at fostering green financing among a diverse range of stakeholders and development partners across the public and private sectors. These stakeholders encompass project owners and developers, institutional investors, asset managers, financial institutions, government bodies, and international organizations.

Green bonds, a specialized form of debt financing, play a pivotal role in this endeavor. These bonds are specifically designed to raise funds for projects that align with environmental and climate goals, offering investors a means to support sustainable development initiatives. By issuing green bonds, governments and corporations can tap into a broader pool of capital, diversifying their funding sources and reducing their reliance on traditional fossil fuel-based financing.

In addition to green bonds, this report also examines other financial instruments, such as green loans, sustainability-linked loans, and sustainability-themed mutual funds, that can contribute to climate-resilient infrastructure development. These instruments offer flexible financing options tailored to specific project requirements, enabling developers to access the necessary capital while aligning their projects with environmental and social sustainability standards.

Furthermore, the report highlights the importance of policy frameworks and regulatory support in promoting the growth of green finance in Indonesia. Strong policy frameworks, coupled with robust regulations, can create a conducive environment for investors, issuers, and developers to engage in sustainable financing practices. This includes measures to ensure transparency, accountability, and alignment with international climate goals and standards.

To conclude, this comprehensive report underscores the significant role of green bonds and other financial instruments in fostering climate-resilient infrastructure and advancing a low-carbon economy in Indonesia. By leveraging the power of finance, governments, corporations, and investors can work together to build a more sustainable and resilient future for the nation. The insights and recommendations provided in this report are intended to inform and inspire action, paving the way for a greener and more prosperous Indonesia.

Dimension: 280 x 216 (mm)
ISBN-13: 9789292693893