Indonesia, in adherence to the Paris Agreement as ratified by Law 16/2016, demonstrates its commitment to reducing greenhouse gas emissions by determining the Nationally Determined Contribution (NDC) which sets the course for their ambitious climate goals.
In order to meet its NDC goals, Indonesia released the Indonesia Green Taxonomy 1.0, which is aligned with the NDC's sectoral objectives. The initial rollout of the Indonesia Green Taxonomy will be in the financial services sector, where it will be used to improve the reporting systems already in place. The Green Taxonomy classifies economic sectors based on their environmental support, aiding in measuring the portfolio sizes of financial institutions and issuers. The outcomes will help shape sustainable finance policies and promote a greener economy. Indonesia's resolute actions highlight their leadership in climate action and sustainable finance, inspiring global transformative efforts toward a more sustainable future. Find out more about our insights about this topic in our Legal Brief publication.