Global Energy Transition Investment Hits US$2.3 Trillion, Indonesia Eyes Economic Opportunities
Global commitment to the energy transition is strengthening as worldwide investment in the sector reached a record US$2.3 trillion in 2025, an 8.1 per cent year-on-year increase according to BloombergNEF. The United Kingdom recorded a 36 per cent rise to US$85 billion, with the largest flows directed towards transport, renewable energy, and power grids.
In Indonesia, the transformation towards net-zero is projected to unlock a US$3.8 trillion economic opportunity by 2050. Early signs are visible, with electric vehicle sales reaching 14 per cent of the market between January and August 2026, and sustainable financing growing twelvefold from US$0.5 billion in 2015 to US$6.3 billion in 2024.
This momentum was discussed at two forums during London Climate Action Week 2026: the Indonesia Climate Leadership Luncheon and the Southeast Asia Climate Action Forum.
Indonesian Minister of Forestry Raja Juli Antoni stated that strengthening carbon market infrastructure is key to attracting investment. Indonesia will launch the Carbon Unit Registry System (SRUK) on 9 July 2026 as a foundation for transparency and accountability in the carbon market.
“The launch will also be followed by the registration of several forestry sector carbon projects that have been internationally verified. On 6 July, the Ministry of Forestry will also facilitate the issuance of more than 30 million tonnes of CO₂e carbon credits from the forestry sector,” Raja Juli said.
Minister of Environment Jumhur Hidayat emphasised that the economy and the environment must go hand in hand. To strengthen the legal framework, the People’s Consultative Assembly (MPR) is targeting the issuance of Indonesia’s first Climate Change Bill by the end of 2026.
Chairperson of the Board of Commissioners of the Financial Services Authority (OJK) Friderica Widyasari Dewi noted that sustainable banking financing in 2025 reached Rp2,114.6 trillion, growing 3.28 per cent annually. The renewable energy and biodiversity conservation sectors recorded the highest growth.
“The OJK invites financial institutions and investors to jointly develop transition financing products and aligned blended finance schemes,” Friderica said.
The Indonesian Chamber of Commerce and Industry (Kadin) also expressed support for the RE100 initiative through a memorandum of understanding witnessed by the Minister of Environment, the OJK Chairperson, the Deputy Speaker of the MPR, and the Deputy Chairperson of Commission XII of the House of Representatives. The Climate Group is targeting the first company headquartered in Indonesia to join RE100 this year.
“This means the world’s most influential companies are now committing to meeting 100 per cent of their electricity needs from renewable energy by 2050,” said Equatorise Advisory CEO Steven Marcelino.