Developing West Java’s Enabling Environment and Banking Needs Assessment to Drive Green Finance
The Government of West Java is among the municipalities with the highest commitments towards SDGs and climate change issues. It is currently implementing a 2018-2023 subnational action plan on SDGs (RAD TPB) and aims for West Java to be a “green province” by 2025. The province has listed potential projects on mitigation, and adaptation, particularly in the sectors of Sustainable Infrastructure, Sustainable Transportation, Renewable Energy, and Resilience to Climate Change (waste and water system).
These identified potential projects in the pipeline generally have high investment requirements and have specific challenges at the project level. Challenges vary from technical to institutional, but all of them converge on the difficulty of obtaining adequate and sustainable financing. Hence, there is a need to develop a set of enabling policies to push the banking sector’s involvement and optimize the use of blended finance, by addressing investment barriers for climate resilience-related programs.