Out-Law News 1 min. read
09 Nov 2022, 11:02 pm
The Indonesian government has published new guidance on how to invest sustainable ocean economy-related projects to achieve the country’s sustainable development goals (SDGs).
Known as the Blue Finance Instrument Development Guideline, the guidance focuses on Indonesian sustainable development goal 13 ‘climate action’ and goal 14 ‘life below water’ to tackle climate change and ocean system related issues.
Blue finance refers to investment in projects which protect the ocean environment and help sustainable ocean economic activities.
According to a report, the guideline contains implementation steps for developing blue financing instruments such as the issuance of ‘blue bonds’ and the need for a national committee to provide consideration in relation to blue financing in Indonesia.
Climate change expert John Yeap of Pinsent Masons said: “As an archipelagic nation, Indonesian waters have significant marine resources that in the absence of a robust focus on a sustainable blue economy could lead to the continued exploitation and destruction of such resources and biodiversity. The blue finance guidelines are therefore to be welcomed as they provide a basis for capital providers to come together with stakeholders to protect and promote the nation’s marine resources.”
“Success will however very much depend on ensuring the implementation of the guidelines is transparent and well-structured so as to provide the confidence required by capital providers that the desired outcomes can be achieved,” he said.
The guidance is expected to help the government and the private sector in establishing various quality funding instruments to finance sustainable blue economy activities, according to minister of Indonesia’s National Development Planning Ministry (PPN), Suharso Monoarfa.
A blue bond is a new form of a sustainability bond, a debt issued to help investment in healthy oceans and blue economies. This type of bond could be issued by governments, banks or companies.
There are 17 SDGs which were agreed by world leaders in 2015 – a shared blueprint for peace, people and the future. Indonesia published its roadmap of SDGs in 2019.
15 Dec 2021