G20 countries urged to push for green bonds

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Indonesia, host country of the Group of 20 (G20) meeting, has urged financial leaders from the world’s 20 major economies to promote the issuance of green bonds as part of a sustainable financing instrument to combat climate change. climate change.

Bank Indonesia Governor Perry Warjiyo made the remarks during the second day of the G20 Finance Ministers and Central Bank Governors meeting here on Friday.

There has been a massive increase in the issuance of sustainable finance bonds globally since the first issuance in 2007, and global issuance of green bonds reached US$859 billion (RM3 trillion) in 2021, “highest on record,” Warjiyo said.

“However, the amount is still not enough to meet the investment target the world needs to embrace green energy.”

According to the International Capital Market Association, green bonds refer to the type of debt instrument used to support green projects and can be used to raise funds for specific environmental and climate projects in areas such as alternative energy and low carbon materials.

Indonesia has started improving its green and sustainable financing instruments, Indonesian Financial Services Authority Commissioner Agus Edy Siregar said at the event. However, public and private entities still find it difficult to issue green instruments due to the lack of incentives to issue green bonds. or profits in financing the green sector, he added. — Xinhua

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