Green Sukuk Could Support Indonesia’s Climate Change Financing Efforts: Finance Minister

Indonesia’s Minister of Finance, Sri Mulyani Indrawati, stated that the issuance of Green Sukuk has been one of many financing efforts to meet the country’s emission reduction targets. Green Sukuk are Shariah-compliant Government Securities (SUN) issued in order to fund climate change projects in line with climate change commitments.

In particular, the financial requirement for the Nationally Determined Contribution's (NDC) 29% emission reduction target by 2030 has been identified as IDR 3,461 trillion for a five year period or an average of IDR 266.2 trillion per year, according to news reports. Indrawati discussed the issuance of a global Green Sukuk of USD 2 billion by the Government of Indonesia in 2019, which was con...