G-20 News

The G20 encourages the development of a framework for financial transition

Jakarta (ANTARA) – The second meeting of the Sustainable Finance Working Group (SFWG) under the Indonesian G20 Presidency has encouraged the development of a framework for financial transition and to increase the credibility of financial institutions’ commitments.

“This includes transition frameworks, case studies and commitments from financial institutions, which focus on market practices,” Dian Lestari, head of the Center for Climate Change Finance and Multilateral Policy, said here Saturday. the Fiscal Policy Agency of the Ministry of Finance.

In addition, the SFWG also encourages the enhancement of sustainable financial instruments to enhance accessibility and affordability, including access to sustainable financial markets globally.

The discussion on sustainable financial instruments also includes risk reduction mechanisms as well as efforts to fill knowledge gaps, especially for relevant stakeholders in developing countries and in the small and medium enterprise (SME) community. ).

“The SFWG also discussed progress on the G20 Sustainable Finance Roadmap,” Lestari noted.

Lestari noted that the various discussions follow on from the first meeting of the SFWG held in January and the first meeting of finance ministers and central bank governors in February 2022.

Lestari explained that the development of the transitional financial framework aimed to help the potential of financial markets to support a sustainable transition.

Meanwhile, increasing the credibility of financial institutions‘ commitments is achieved by establishing best practices for the implementation of net zero and related commitments.

Lestari said the priority agenda for the SFWG has two workstreams including Workstream 1 on deepening key elements to develop voluntary principles.

Workstream 2 aims to improve sustainable financial instruments, with a focus on increasing accessibility and affordability.

Lestari said Workstreams 1 and 2 align with the goal of preparing voluntary recommendations and options on business efforts in all jurisdictions, especially in developing countries, while SMEs can access to affordable green and sustainable financial markets.

Lestari noted that the SFWG, as part of the G20 forum, has played an important role in promoting and advancing the G20 framework and roadmap for innovative and sustainable finance.

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