Global Blended Alliance Raises US$30 Billion

Combined fund for the improvement of climate change mitigation has already been launched.

KOMPAS/ADITYA PUTRA PERDANA

Deputy Minister for State-owned Enterprises I Pahala Nugraha Mansury plants a resin tree on the sidelines of the signing of a heads of agreement (HoA) between Pertamina Power Indonesia, a subholding of Power & New Renewable Energy (Pertamina NRE) and the forestry department in Sentul Eco Edu Tourism Forest, Bogor Regency, West Java, on Monday (20/6/2022).

BADUNG, KOMPAS – The Global Blended Alliance has raised US$30 billion as initial capital. It is in the process of designing a system of availability of the capital so that it can be accessed not only by countries and big corporations but also civil society and micro, small and medium enterprises which are actively involved in environmental conservation and sustainable economic development.

This announcement was conveyed at the Tri Hita Karana forum in Nusa Dua, Bali, on Sunday (13/11/2022) as one of the activities of the Group of 20 Summit.

The $30 billion fund came from donations from the world’s 19 biggest economies and the European Union, contributions from companies, charity organizations and philanthropic agencies.

Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan was also present at the forum. The $30 billion fund came from donations from the world’s 19 biggest economies and the European Union, contributions from companies, charity organizations and philanthropic agencies.

“If the capital can be activated, government and society will also be activated,” World Bank managing director of development policy and partnerships Marie Elka Pangestu said.

KOMPAS/SUCIPTO

A child from the banks of Karang Mumus River in Samarinda city, East Kalimantan, plant trees near the river in order to maintain water quality and prevent landslides on Friday (6/9/2019).

The $30 billion is a small amount. One country needs $1 trillion based on United Nations’ calculations to implement decarbonization. That is why the collection of funds must be increased to achieve the target.

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During the forum, the involvement of grassroots-level organizations was stressed. MSMEs and civil society organizations and groups struggle to achieve sustainable economic conservation in the real sector but a majority of them cannot access capital. In fact, there are several innovative business and social empowerment models at the grassroots level.

Chief of the Working Unit of the Global Blended Alliance Katherine Stoduka said that approaches from top to bottom and bottom to central top are developing now. They are looking for local partners who can bridge the funding program with grassroots organizations. The headquarters of the alliance is in Bali with an objective of making it one of the centers of sustainable creative economic activities.

LARASWATI ARIADNE ANWAR

Executive director of United Nations Compact Sanda Ojiambo attends the Tri HIta Karana forum in Nusa Dua, Bali, on Sunday (13/11/2022). This program is part of G20 Summit. The UN Global Compact is a UN agency which is involved in corporate social responsibility.

On a different occasion, executive director of United Nations Compact, which offers corporate social responsibility benefits, Sanda Ojiambo, said that economic competitiveness could be achieved through sustainability. The business models that look for quick profits cannot compete because they cannot survive in the long term.

“For example in the wage-based workforce sector. Greedy companies can make quick profits, but after that they will be problematic for their workforces. Nowadays, consumers are smart enough to reject them. Such companies will be hit hard,” she said.

This article was translated by Veeramalla Anjaiah