SDG Aligned Debt & Loan, also referred to as thematic bond, is a means to mobilize resources for the implementation of the 2030 Agenda. This framework involves public authorities and, more importantly, private actors to provide the right environment for more capital to be directed towards financing SDGs-related projects.
Green Bond/Sukuk
The results of the budget tagging process are further utilized to prepare innovative financial instrument to address climate change in the form of Green Bond/Sukuk and to unlock alternative sources of funding for national climate actions by leveraging innovative financing mechanism. In March 2018, The Government of Indonesia issued $1.25 billion of the world's first green Sukuk and the second issuance in February 2019. Reflecting on those successes, the Gol broadened the scope of green financing to include more retail investors by issuing Retail Green Sukuk in November 2019, where a hundred percent of its proceeds are used to finance or refinance projects related to climate mitigation, adaptation, and biodiversity preservation.
