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Abstract

Climate change causes various negative impacts on life, thus requiring mitigation and adaptation actions. Climate finance could support the transition to a low-carbon economy globally, including in Indonesia. However, empirical research on climate finance in Indonesia is still limited. This study uses path analysis to examine the relationship between climate finance, renewable energy mix, and carbon emissions in Indonesia from 1973 to 2020. The results show that climate finance could not directly reduce carbon emissions or promote renewable energy indirectly. These findings indicate the need to reallocate climate finance to sectors that have the potential to reduce carbon in Indonesia.

Bahasa Abstract

Perubahan iklim menimbulkan berbagai dampak negatif bagi kehidupan sehingga memerlukan tindakan mitigasi dan adaptasi. Pendanaan iklim dapat berperan untuk mendukung transisi ekonomi rendah karbon secara global, termasuk Indonesia. Namun, penelitian empiris mengenai pendanaan iklim di Indonesia masih terbatas. Studi ini menggunakan analisis jalur untuk mengkaji hubungan antara pendanaan iklim, bauran energi terbarukan, dan emisi karbon di Indonesia dari tahun 1973–2020. Hasil menunjukkan bahwa pendanaan iklim tidak dapat secara langsung mengurangi emisi karbon. Pendanaan iklim juga tidak dapat mendorong energi terbarukan untuk menurunkan emisi karbon. Temuan ini mengindikasikan perlunya realokasi pendanaan iklim ke sektor-sektor yang memiliki potensi pengurangan karbon di Indonesia.

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