Bisnis.com, JAKARTA -- Indonesia's temperature is predicted to rise 1.5 degrees Celsius and Indonesia needs funds of US$247 billion for the transition.

Minister of National Development Planning/Head of Bappenas Bambang P.S. Brodjonegoro stated that the climatic conditions would create hydro-meteorological disasters such as floods, droughts, landslides. In addition, there is also reduced agricultural production, and limited fishing areas for fishermen.

"If left unchecked, these conditions affect Indonesia's economic growth," said Bambang Brodjonegoro through a press release received by Bisnis.com, Friday (19/7/2019). Bisnis.com, Jumat (19/7/2019).

Bambang said the condition was in accordance with the discussion of the Special Report on Global Warming of 1.5°C, a comprehensive report released by the Intergovernmental Panel on Climate Change (IPCC) in October 2018.

The report contains a review of the limitation of rising global warming of 1.5°C requiring a rapid and broad transition, both in energy use, land management, sustainable development of urban infrastructure, including transportation, buildings, and industrial systems.

Bambang explained that Indonesia only had 11 more years to reach the prevention target in 2030.

Meanwhile in the maritime sector, the impact of climate change can be seen from the projected rise in sea surface temperature by 0.25 degrees Celsius in the period 2006-2040, as well as extreme waves. This condition will affect biodiversity, cause coral reefs to bleach, and impact coastal marine life.

"The Bappenas study shows that Indonesia has at least 18,000 kilometers of coastline that falls into the category of vulnerable areas affected, "said Bambang.

Furthermore, Indonesia's commitment to achieving targets related to climate change is also emphasized through Indonesia's Low Carbon Development (LCD).

The moderate LCD scenario predicts that Indonesia's GDP can be maintained at 5.3% in 2045 and a reduction in greenhouse emissions by 29% in 2045.

Meanwhile, a more ambitious scenario predicts GDP growth of up to 6% in 2045 with a reduction in greenhouse gas emissions by 41% in 2030.

However, the transition to LCD and other climate-responsive actions requires substantial investment. In accordance with the Nationally Determined Contribution (NDC) target, Indonesia needs US$247 billion for the transition.

Meanwhile at the global level, with the calculation of average funding that refers to the NDC, the amount of investment needed reaches US$4.4 trillion.

Compared to the value of the investment needed, Indonesia still needs massive funding, considering that in 2018, the budget allocation for climate change action is recorded at only US$9.3 billion. For this reason, this year, Indonesia issued green sukuk worth US$1.25 billion.

The Green Climate Fund (GCF) is expected to be able to provide financial support for developing countries, including Indonesia.

Currently, At present, the GCF has supported three projects in Indonesia, namely first, Geothermal Resource Risk Mitigation which has the potential to reduce 112.2 million tons of carbon dioxide per year with a total funding of US$410 million.

Second, the development of Bus Rapid Transit in Semarang with a total GCF grant of US$788 thousand. This program has the potential to reduce 210,000 tons of carbon dioxide per year.

Third, Climate Investor One, projects implemented in 11 countries, including Indonesia. The GCF also agreed to provide US$100 with co-financing of US$721.5 million.

"This project will provide funding for renewable energy projects which are expected to reduce 53.7 million tons of carbon dioxide per year," Bambang concluded.