Indonesia: Green Finance Facility for Renewables

The objective of this activity is to provide technical assistance and capacity building to help PT Perusahaan Listrik Negara (PLN) in creating Environmental, Social and Governance (ESG) and Green Financing-related frameworks, corporate policies, targets, guidelines and processes that enable the company to raise market-based financing for the required investments for Indonesia to achieve its Net Zero target by 2060 or earlier. The frameworks, policies, targets, guidelines and processes will also be put to a “market test” by using them in a pilot transaction that may be supported by a World Bank Guarantee. Combined, the market-tested corporate capacity improvements seek to secure PLN’s continued access to market-based financing, in an environment where PLN’s traditional lenders and investors are becoming more and more sensitive about ESG considerations, as a key financing source for Indonesia’s long-term energy transition.