The rapid changes of global environment in the forms of global warming, rise of sea level, and all the natural disaster that follows have gradually forced human being to change their social and economic daily activities. In the long run, the degradation of global environment will lead to global disaster.  Economic development that taking into account the environment sustainability has gradually become a global paradigm. This would change the policy and programs of economic development, including infrastructure development, as to seriously consider the environmental sustainability.

Indonesia has always participate in the global movement of environment such as Conference of Parties (COP).  Indonesia, however, had no research organization on climate change and green infrastructure. Economic dvelopment has not taken into account the environmental sustainability. Research organization for green infrastructure is also non existence. Given the global pressure on the need for green economy, it is therefore necessary to establish such research center in Indonesia. Such center is an independent or alternatively quasi public or quasi private research entity which focuses on the enhancement of infrastructure program and projects that support the achievement of SDG’s goals in infratructure development that is sustainably environmental friendly and could contribute to ease the global warming and environmental damage.   

Green infrastructure presents a huge investment opportunity in Indonesia, especially in energy and transportation. It is estimated that Indonesia requires USD322.8bn worth of climate compatible infrastructure and climate assets by 2030, in which energy and transportation makeup around 75% of Indonesia climate funding needs at USD245bn. The effects of climate change and the risks associated with a greater than 2°C  

rise in global temperatures by the end of the century are significant: rising sea levels; increased frequency and severity of hurricanes, droughts, wildfires, and typhoons; and changes in agricultural patterns and yields. Investment in low-carbon solutions will be essential for meeting global emission reduction pathways under the Paris Climate Change Agreement. Since 2019, there was an increasing demand from institutional investors—particularly from OECD nations and China for investment opportunities that address environmental challenges and support sustainable development. Institutional investors and banks manage assets worth over USD120tnn that could be used for infrastructure investment. Growing interest from investors in green projects has resulted in the development and growth of innovative financial products. The global green bond market has grown rapidly, cumulative total labelled issuance stood at USD2.1tn at end H1 2021; cumulative green issuance at USD1.3tn

Green Infrastructure Investment Opportunities. INDONESIA: Green Recovery 2022 REPORT