Historic Launch of the G20 Bali Global Blended Finance Alliance to Unlock Green Investment for the Global South

The UN Sustainable Development Solutions Network (SDSN) warmly congratulates the Government of Indonesia for the successful launch of the G20 Bali Global Blended Finance Alliance (GBFA) Secretariat and signing of Letter of Intent on Monday, 20 May 2024 around the 10th World Water Forum in Bali. The SDSN 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 Luhut expressed his thanks to all member countries, especially to Canada, the Democratic Republic of Congo, Fiji, France, Kenya, Luxembourg, Sri Lanka and the UAE who have 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 organization and cooperation”, Coordinating Minister Luhut added.

The G20 Bali GBFA is being set up as an international organization 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 realize sustainable prosperity globally. Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut B. Pandjaitan expressed his highest appreciation to President Jokowi for Indonesia's initiative in launching the G20 Bali Global Blended Finance Alliance which was recognized 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”, said Coordinating Minister Luhut.

The mission of the G20 Bali GBFA would be to scale and replicate blended finance instruments for developing countries by accelerating investments, modernize 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, 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 Organization. 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 organizations, other international organizations, and private sector.

In parallel to the signing of the G20 Bali GBFA letter of intent, the Secretariat has held a series of dialogues. The G20 Bali GBFA Dialogue co-convened with the Tri Hita Karana Forum and World Economic Forum focused on a just energy transition, forests, the blue economy including mangroves and seagrass forests, infrastructure, tourism and health.

Adapted from Communication Bureau, Ministry of Coordinating Maritime and Investment Affairs, Republic of Indonesia (No.SP-130/HUM/ROKOM/SET.MARVES/V/2024)