The 2nd Meeting of the Sustainable Finance Working Group (SFWG)

Jakarta, 31 March 2022 – Continuing the first meeting in January 2022, on Wednesday and Thursday, 30-31 March 2022, the second meeting of the Sustainable Finance Working Group (SFWG) was held. The second SFWG meeting was attended by all members of the G20, invited countries (invitees), and international organizations. On the first day of the second SFWG meeting, the meeting was filled with materials related to workstreams and discussions with the delegates discussing various topics.

Head of Center for Climate Change and Multilateral Financing Policy, Fiscal Policy Agency, Ministry of Finance representing Indonesia’s G20 Presidency Dian Lestari opened this meeting. At the opening, Dian stated that the meeting will focus on the two workstreams of the SFWG Priority Agenda. Continued with workstream-2 which discussed the topic: “Improving Sustainable Financial Instruments”. In this session issues related to the development of a framework for transition finance and discussions to increase commitment to financial institutions. Furthermore, for the second session, the topic discussion is from workstream-1  “Transition Framework” where in addition to discussions on the transitional framework, case studies and discussions on financial institution commitments focus on market practices. These two workflow topics were followed by a Q&A session, discussions, and recommendations from each delegate.

The third session topic for workstream-1 is “Transition Case Studies” which discusses issues of enhancing sustainable financial instruments to strengthen accessibility and affordability, including discussions on access to sustainable global financial markets as well as risk reduction mechanisms for sustainable instruments. The meeting then continued with the discussion of “Financial Institutions Commitment – ​​focus on market practice” where in this session each delegate socialized on how to overcome the knowledge gap related to sustainable instruments, especially for relevant stakeholders in developing countries and Small and Medium Enterprises (SMEs).

On the second day, the Sustainable Finance Working Group (SFWG) meeting was also attended by all G20 members, invited countries, and international organizations. A discussion was held on the progress of the roadmap from the Coalition of Ministers of Finance for Climate Action. In this session, the delegates discussed the development of a transitional financial framework to help financial markets support the transition to sustainability. In addition, several related international institutions/knowledge partners also presented the results of their analyst reports together with several member countries. In this session, relevant international institutions/knowledge partners share their views and experiences and discuss case studies related to analysis.