One of the key points in the address of the UN Secretary-General was the financial issue faced by developing countries. According to Antonio Guterres, loan capacity improvement for the Multilateral Development Bank (MBD) was needed to accelerate energy transition for developing countries.
The 15th IRENA Assembly focused on tripling renewable energy capacity by 2030 with increased ambition in Nationally Determined Contributions (NDC 3.0), supporting the transition and harnessing innovative financial flows in developing countries. Financial challenges are usually arise as the world tries to move forward, considering the uneven quality of the economies of countries in the world.
That is why the Climate Change Conference (COP29) meeting in Baku, Azerbaijan last November focused discussions on efforts to increase climate finance. At that time, COP29 agreed on a climate finance target of US$300 billion per year for developing countries by 2025.
At the COP29 meeting, Indonesia succeeded in obtaining a green funding agreement of 1.2 billion Euros. The funds came from the Kreditanstalt für Wiederaufbau (KfW) for the electricity sector.
Indonesia itself was projected to need green financing of up to US$281 billion. Despite financing sources might come from the private sector and cooperation between countries, the existing funding is still far from ideal.
Another important issue in achieving the acceleration of the energy transition is the support of state regulations on climate change, and the design of the energy transition from fossils to clean energy. However, the financing aspect is very urgent and requires international support, especially from large countries.
The world wished that the first energy conference in 2025 could produce real results for efforts to maintain the earth's temperature and improve the climate. Hopefully the positive achievements at COP29 last November can be replicated, so that the world does not lose hope in facing the climate challenges that are increasingly felt by everyone. (Publish: Rama)