Coordinating Ministry of Maritime Affairs and Investment of Indonesia, New York, 26 September: The Global Blended Finance Alliance (GBFA), an international platform dedicated to bridging the financing gap of SDGs and climate action in the developing world on Thursday (26/09) recorded a milestone at the sidelines of the United Nations General Assembly (UNGA) in New York as UN Development Programme (UNDP), and Tony Blair Institute for Global Change (TBI) joined the Platform.

UNDP and TBI signed the Memorandum of Understanding (MoU) with the Indonesian Coordinating Ministry of Maritime and Investment Affairs (CMMAI) – the leading implementing government partner - as knowledge partners of the Platform. The move came less than a month after United in Diversity joined the Platform during the Indonesia International Sustainability Forum (ISF) 2024 in Jakarta.

CMMAI led the setting up of the Forum during Indonesia’s G20 Presidency in 2022, along with the Indonesian Foreign Ministry and the Indonesian Finance Ministry. 

Developing economies are facing a staggering annual financial gap of USD 3 trillion for climate action and SDGs. This significant funding gap calls for stronger efforts to enhance financial investments, implement innovative funding mechanisms, and secure commitments from various governments, and the private sector. The GBFA was set up  as a response to the growing need for a South-led financing platform on SDGs and climate action. 

Witnessing the signing of the MoUs was CMMAI Minister, Luhut Pandjaitan, Special Envoy for Global Blended Finance Alliance, Mari Pangestu and Asia-Pacific Managing Director of TBI, Jalil Rasheed. Deputy of Environment and Forestry Management Coordination at the CMMAI, Nani Hendiarti inked the agreements alongside Claire Van der Vaeren, Chief, CO Liaison and Coordination (COLAC) representing UNDP Regional Bureau for Asia and the Pacific and TBI Indonesia Country Director, Shuhaela Haqim.

“Today’s signing will bring the GBFA one step closer to creating more positive impact at a larger scale.This alliance is essential for bridging the financing gap in climate action and advancing the Sustainable Development Goals. The GBFA's vision as an international organization will uniquely support developing countries in structuring their development projects to attract potential investors," said Luhut.

Nani Hendiarti, Deputy of Environment and Forestry Management Coordination at the CMMAI, highlighted the importance of global collaboration in delivering GBFA’s positive impact.

“Partnering with a strategic Knowledge Partner is a critical step for forging a win-win collaboration on GFBA . As an international non-governmental or philanthropic organization with extensive expertise and aligned goals, the Knowledge Partners will support  the GBFA in program design, fund mobilization, and advancing its mission and activities that meet international standards,” said Nani.

Supporting the collaboration, Claire Van der Vaeren, Chief for Country Office Liaison and Coordination at the Regional Bureau for Asia and the Pacific of UNDP  said, “UNDP is a long-standing partner of the Government of Indonesia in promoting innovative financing such as blended finance and we look forward to being a partner of the GBFA. We know that the financing gap for the SDGs is considerable and cooperation through the GBFA has the potential to contribute significantly to sustainable development by aligning public and private sector efforts, and helping deliver tangible development results at scale”.

“I’m excited to bring TBI into action with the GBFA as we believe in the power of practical solutions to address the massive financing gap on SDGs and climate action, potentially benefiting millions of communities worldwide. With solid leadership by the Indonesian government and strong buy-in from key international partners, we believe the GBFA will deliver impactful results,” said Shuhaela Haqim, TBI Indonesia Country Director.