BALI, INDONESIA – November 15, 2022 – Today, at the Indonesian Presidency’s G20 Leaders’ Summit, it was announced that the Government of Indonesia will pursue an ambitious national effort under a Just Energy Transition Partnership (JETP) to accelerate the phasing down of fossil fuels and ramping up of renewable energy, alongside investment in transition-aligned jobs and industries of the future. Recognizing the scale of the investment needed to deliver on these ambitious goals, the International Partners Group (IPG), co-led by the United States and Japan, and also consisting of the Governments of Canada, Denmark, the European Union, France, Germany, Italy, Norway, and the United Kingdom, are committing an initial $10 billion over a three-to-five year period to support the Government of Indonesia in implementation of the Indonesian JETP.

Given the importance of ensuring that the leadership shown by the Government of Indonesia, with the support of the IPG, catalyzes significant private investment, the Glasgow Financial Alliance for Net Zero (GFANZ), the world’s largest coalition of financial institutions with ambitious science-based commitments to net-zero transition, confirms today that it will work in support of these efforts, with a particular focus on the mobilization of private capital. To this end, GFANZ has established a Working Group of net-zero-committed financial institutions. The initial Working Group members – Bank of America, Citi, Deutsche Bank, HSBC, Macquarie, MUFG, and Standard Chartered – have been working with partners in support of the Indonesian JETP by identifying barriers to sourcing the necessary private investment, advocating for the reforms necessary to address those barriers, and identifying approaches that could help crowd in private finance at scale.

The financing needed to support transition is significant, and it will be imperative that serious levels of private finance are mobilized to meet the ambitious goals laid out in the Indonesian Government and IPG JETP announcement. As firms committed to net zero, GFANZ members – including the named Working Group members – are seeking to ensure that there are transition-aligned financing opportunities around the world. By working through the Indonesian JETP, these firms, and others with similar levels of commitment to unlocking transition finance, have the opportunity to significantly increase the amount of finance allocated to transition-aligned companies and projects.

As part of today’s announcement, the GFANZ Working Group members have committed to working closely with the Indonesian Government and the IPG toward the mobilization and facilitation of at least $10 billion in private finance in support of an ambitious transition path and investment plan. With collective ambition by all parties, including using public financing catalytically to crowd in private finance, the initial $10 billion commitment by the public sector has the potential to generate significantly more in private finance.

The commitment is subject to the involved governments and partners working closely with GFANZ and the private sector to ensure (i) continued progress in improvements to the local and international policy and enabling environment; (ii) the availability and deployment of catalytic public finance, including in structures and forms that can be used to appropriately de-risk and crowd in private finance; and (iii) a robust pipeline of competitively tendered projects that are demonstrably consistent with the JETP’s ambitious transition pathway.

In the coming months, the GFANZ Working Group will work with Indonesia, the IPG, public financial institutions, and other JETP partners to take the next steps needed to implement the vision of the JETP.

Michael R. Bloomberg, Co-Chair, GFANZ and UN Special Envoy on Climate Ambition and Solutions: “Indonesia has enormous potential to build out clean energy and set an example for other countries working to grow their economies and cut their emissions at the same time. Turning that promise into reality – and speeding up the global transition to clean energy – requires public-private partnerships. By bringing financial firms to the table, we can multiply the impact of government commitments and attract more private investment to Indonesia.”

Mark Carney, Co-Chair, GFANZ and UN Special Envoy on Climate Action and Finance: “The Government of Indonesia’s ambitious, comprehensive strategy to accelerating the transition of its energy systems can be transformative for its economy and a model for the world. This will require overcoming multiple barriers to capital mobilization through close collaboration between a broad range of public and private partners. The GFANZ Working Group is fully committed to ensuring that the initial $10 billion of capital committed by Indonesia’s international partners will mobilize significantly more in private finance.”

Mary Schapiro, Vice Chair, GFANZ: “GFANZ is laser-focused on mobilizing private capital to finance the energy transitions of emerging markets and developing economies. I hope that today’s announcement and subsequent implementation of the Indonesian JETP serves as a blueprint for how private finance can work hand-in-hand with governments, public finance, and others, to implement ambitious climate objectives.”

Brian Moynihan, CEO, Bank of America: “This work is an example of how the private sector is playing a critical role in helping aim capitalism to drive a just transition to a sustainable energy future.”

Jane Fraser, CEO, Citi: “Financial institutions can play an important role in contributing to the global net zero transition. Today’s announcement demonstrates the importance of the private and public sectors working together to develop solutions that can help scale the funding required to achieve net zero ambitions.”

Christian Sewing, CEO, Deutsche Bank: “Deutsche Bank has been on the ground in Indonesia for more than 50 years, and we are deeply committed to the development of the country’s economy and markets. Taking action to make this development more sustainable is very important to Indonesia and to the world’s fight against climate change. We are therefore very proud to be a member of the GFANZ Working Group in support of the Indonesian Just Energy Transition Partnership, mobilizing private finance in support of an accelerated transition path.”

Noel Quinn, CEO, HSBC: “We applaud today’s important announcement and look forward to working with stakeholders to allocate capital where it is most needed and can deliver the greatest impact. It is further proof that finance has an important role to play in facilitating the changes needed to achieve net zero.”

Shemara Wikramanayake, CEO, Macquarie: “The announcement of a JETP for Indonesia provides a real opportunity to mobilize significantly increased levels of private finance in support of its energy transition. I look forward to Macquarie building on our active presence in Indonesia and working with private and public partners to develop an effective investment environment and deliver on the ambition of today’s announcement.”

Hironori Kamezawa, CEO, MUFG: “As an Asia-headquartered financial institution with an extensive footprint in Indonesia, MUFG is excited to be part of the GFANZ working group committed to work with the governments of Indonesia, Japan and the United States of America, and other members of the IPG. In collaboration with the public and private institutions, I believe this partnership will catalyze Indonesia’s energy transition, which will unlock further economic growth in a just and orderly manner.”

Bill Winters, Group Chief Executive, Standard Chartered: “We are delighted to be a core part of the private sector working group to support the mobilization of the capital needed to achieve Indonesia’s ambitious decarbonization agenda, which aims to create a sustainable future for the country and its citizens.”