The Jakarta Post: How Indonesian Banks Can Catch Up On Climate Transition

Oliver Wyman’s Timothy Colyer, Head of Indonesia and Asia Pacific Climate and Sustainability lead, and Felia Salim, Senior Advisor, contributed an article to The Jakarta Post discussing how Indonesia’s banks can catch up on the climate transition.

The response from banks in South East Asia has undoubtedly been slower than their Western counterparts, but it is important to note that climate action in the region is complicated.

While debates as to who should bear the cost of climate transition continue, South East Asian governments are increasing their understanding of the need to transition and many have made aggressive national commitments to tackle climate change. Indonesia for instance has pledged to achieve net-zero emissions by 2060 or sooner.

Indonesia and the South East Asian region should take advantage of the transition – it is rich in solar energy, has reserves of transition metals, and can domestically thrive from moving away from fossil fuels. For banks, climate alignment can be a business opportunity. The estimated global investment needed to limit warming to 1.5C above pre-industrial levels run into the trillions annually. That will create a wealth of financing opportunities.

The article outlines four steps that banks should take to take advantage of the opportunities and support clients in the transition.

Read the full article here.