On 20 February 2024, FPCI Climate Unit and the British Embassy Jakarta convened a public discussion titled "A Sustainable Future for All: Rethinking Development to Address the Climate Crisis," featuring Nick Dyer, Second Permanent Under-Secretary at the FCDO of the United Kingdom. The insightful discussion delved into various topics, including the UK’s International Development White Paper, partnerships with Indonesia, and the UK’s efforts and challenges in accelerating efforts toward achieving SDGs, fostering economic transformation and financing models, and promoting green initiatives.
What's outlined in the UK’s International Development White Paper?
“In my 34-year career in development, one of the significant changes is the increased focus and importance of climate change. The UK's International Development White Paper, published in November (2023), reflected a big shift in development: we cannot reduce poverty without addressing climate change. We're never going to reduce the challenge of climate change unless we reduce emissions, but how do we help people to adapt to climate change as well? Which is why we've put climate change and addressing biodiversity loss at the central heart of this White Paper.”
How can Indonesia accelerate efforts to achieve the SDGs?
“If you look at what's happened in Indonesia over the last 10 years, it's an incredible success story. Indonesia has made significant progress, with 65% of SDG targets reached compared to the global average of 12%. However, this significant progress will be at risk if you don't address climate change. Policy changes such as shifting subsidy regimes away from coal and incentivizing investment in renewable energy, alongside transitioning from fossil fuels to renewables, are needed in order to ensure Indonesia’s success in realizing its SDGs targets.” This involves changing policy and regulation and transitioning from Indonesia's current reliance on fossil fuels (comprising 85% of its energy mix) to embracing renewable energy sources.”
How can we close the finance gap with policy support and scale up investment in clean technology for high-emitting sectors to transition to lower carbon alternatives?
“There are no magic solutions. In Indonesia, 85% of the energy mix relies on fossil fuels, predominantly coal, with subsidies distorting competition, making it challenging for alternative energy sources to emerge as cost-effective alternatives. Additionally, addressing how producers pay for the economic damage from pollution is important. Therefore, mechanisms like carbon markets can incentivize the adoption of more efficient energy solutions. Moreover, Creating a conducive regulatory environment can attract and create opportunities for investment in renewables such as solar panels and hydrogen. Ultimately, incentives are pivotal in driving behavioral change and shaping investment decisions.”
How can the youth participate in more active climate action?
“You are the future. Everybody in this room who is interested in climate–you are going to change the world. I'm not going to change the world. I've got limited opportunities, but you can. Go out there. If you're interested or passionate about this subject, go out there and keep talking about it. Try to change people's minds, engage with the political processes, work with communities on the ground because ultimately it is about people, and we've got to do it, and you are the people who are going to do it.”