ICC welcomes historic alliance to unlock green investment

  • 7 June 2024

ICC has welcomed the launch of a G20 Bali Global Blended Finance Alliance turning outcomes of the 2022 G20 Bali Leaders’ declaration into reality.

ICC has congratulated the Government of Indonesia for the successful launch of the G20 Bali Global Blended Finance Alliance (GBFA) Secretariat and signing of a Letter of Intent during the 10th World Water Forum in Bali last month. ICC is a partner of the Government of Indonesia and the Tri Hita Karana Forum on blended finance and the road to the G20 Bali Global Blended Finance Alliance.

The launch and signing of the GBFA G20 Bali Letter of Intent was attended by nine founding member countries with three representatives from G20 countries, financial hubs, island countries and African countries.

Coordinating Minister for Maritime Affairs and Investment Luhut B. Pandjaitan expressed his thanks to all member countries, especially to Canada, the Democratic Republic of Congo, Fiji, France, Kenya, Luxembourg, Sri Lanka and the United Arab Emirates, who signed the Letter of Intent with host country Indonesia to join as potential founding members.

We invite countries to inclusively draw up a roadmap towards concrete international organisation and cooperation

Mr Luhut

The G20 Bali GBFA is being set up as an international organisation spearheaded by developing countries, including Indonesia. Indonesia is showing leadership for Asia in the Bretton Woods system by encouraging the global community to support accelerated investment in climate action and SDGs.

Indonesia’s firm commitment on integrating blended finance in the G20 process reflects Indonesia’s vision to realise sustainable prosperity globally. Mr Luhut expressed his highest appreciation to Indonesia President Joko Widodo’s initiative in launching the G20 Bali Global Blended Finance Alliance which was recognised in the G20 Bali Leaders’ Declaration.

Currently, the Blended Finance mechanism has been used in South-South Cooperation to strengthen the implementation of national strategic programs, such as in the forestry sector, energy transition and infrastructure

Mr Luhut

The mission of the G20 Bali GBFA is to scale and replicate blended finance instruments for developing countries by accelerating investments, modernise the development finance system by reducing transaction costs, unlock opportunities for transition finance, capacity building and strengthen network across relevant actors. It will work on the premise of the G20 Blended Finance Principles.

Through G20 Bali GBFA, South-South Cooperation will be fostered to draw on the strengths of diverse communities to drive progress towards shared ambition for a sustainable future.

Led by Mari Elka Pangestu, Presidential Special Envoy for Climate Finance and former ICC Executive Board member, the G20 Bali GBFA Secretariat is headquartered in Bali’s Sanur Special Economic Zone. The Coordinating Ministry for Maritime Affairs and Investment will be the focal point for the Republic of Indonesia.

The founding member countries, through the Secretariat, will prepare the process of the establishment of the G20 Bali GBFA to become an International Organisation. Prior to the establishment as an IO, the Secretariat can already start various activities in line with its mission, in collaboration with partners, including philanthropic entities, non-government organisations, other international organisations, and the private sector.