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Friday, 05 July 2024 10:51

GBFA Potential to Encourage South-South Cooperation

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Coordinating Minister for Maritime Affairs and Investment, Luhut B. Pandjaitan, when giving his presentation at the G20 Bali Global Blended Finance Alliance (GBFA) in Bali on Thursday (04/07/24), (Photo : Kemenkomarves) - 

 

 

VOInews, Bali : The G20 Bali Global Blended Finance Alliance (GBFA) is an initiation from Indonesia in its chairmanship of the G20 in 2022. GBFA has been recognized in the G20 Bali Leaders' Declaration (para 43 and Way Forward para 3).

Following up on this, the Coordinating Ministry for Maritime Affairs and Fisheries held a follow-up Hybrid Meeting on GBFA, Thursday (4-7-2024) in Bali.

Coordinating Minister for Maritime Affairs and Investment, Luhut B. Pandjaitan, in his presentation said that GBFA is unique and superior as a form of Indonesia's contribution to fellow developing countries as a platform for South-South Cooperation, primarily helping to close the funding gap for climate action and achieving SDGs in developing countries.

“South South Cooperation through the formation of the South-South platform aims to build a mutually reinforcing mutual investment environment. GBFA facilitates the creation of country platforms for GBFA member developing countries and other developing countries as well as the preparation of Climate Change Action Policies." said Coordinating Minister Luhut.

Coordinating Minister Luhut added that GBFA will be a forum for capacity development, one of which is by facilitating the preparation of standards, guidelines, financial or project financing templates, and capacity development related to blended finance policies under South-South Cooperation as well as a forum for training and knowledge exchange.

GBFA is also a forum and partnership for collaboration across entities, funding and the private sector, including investment.

"Through the benefits of GBFA, it is necessary to immediately accelerate the preparation of the Articles of Agreement (AoA) and other stages to become an international organization, so that the GBFA negotiation team that has been formed can immediately carry out negotiations and finalize the AoA," stressed Coordinating Minister Luhut.

According to a release received by Voice of Indonesia on Thursday (04/07/24), the urgency for establishing GBFA includes the large financial gap to increase climate action and achieve the SDGs, in addition to the many systemic barriers such as the absence of a policy framework, limited human resource capacity, and the lack of a well-designed country platform in developing countries to encourage financing for a sustainable economic transition. to achieve SDGs targets.

GBFA is present as a strategy to overcome the financial gap for climate action. This was revealed by the Deputy for Environmental and Forestry Management Coordination, Nani Hendiarti.

GBFA was formed with the vision of a strong and dynamic global alliance dedicated to bridging the financing gap for the SDGs and climate transition in developing countries by mobilizing blended finance on a large scale.

Its mission is to enable developing countries to mobilize blended finance as a tool to bridge the financing gap in achieving the SDGs and achieving climate goals//VOI

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