Corporate
02 September 2020
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The UK is uniquely placed to help Indonesia deliver the infrastructure needed to tackle waste sustainably, according to a new report released today.
Commissioned by the City of London Corporation and produced by Macquarie’s Green Investment Group (GIG), the document outlines key actions that can be taken in the UK and in Indonesia to resolve urgent issues facing the country’s waste management system, particularly in relation to plastic.
Global plastics use has increased twenty-fold in the past 50 years and is expected to double again in the next 201. Yet, plastic waste management infrastructure, from sorting, recycling and recovery, has not kept up with the rise in production around the world, leading to pollution in the natural environment and associated impacts on local communities.
Alongside Indonesia’s rise in domestic plastic waste, it is also one of the main recipients of exported plastic waste2. If current rates of plastic waste collection and treatment are maintained in line with increasing waste generation, leakage of plastics into Indonesia’s water bodies is projected to increase 30% by 2025 and more than double by 20403. The situation is already costing the coastal tourism industry $13 billion per year4 and impacting the 3.7 million Indonesians working in the fishing industry5.
Earlier this year, the Indonesian Government set out ambitious plans to reach near zero plastic pollution by 2040. However, difficulties remain around raising the necessary finance to deliver this vision, with around £19 billion of investment required6 to achieve appropriate levels of waste collection, sorting, recycling, recovery and disposal over the next 20 years.
As home to some of the world’s most experienced waste firms, and with an extensive green finance and sustainable infrastructure aid programme, including Partnering for Accelerated Climate Transitions and the Global Infrastructure Programme, the report finds the UK is uniquely placed to support Indonesia in its waste management goals.
Following discussions and interviews with government bodies, development banks, international infrastructure investors and other relevant parties, the report presents an overview of the policy measures that can be taken to help unlock private sector investment into sustainable waste management infrastructure in Indonesia, including:
The report was produced for the City of London Corporation by GIG’s Climate Finance Advisory Team. The team utilises GIG’s unique heritage and climate finance expertise, to deliver practical advice to governments and organisations around the world, helping them achieve their transitions to low-carbon and climate-resilient economies.
William Russell
Lord Mayor of the City of London
Edward Northam
Head of GIG UK and Europe
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