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COP30 Climate Finance: Indonesia Demands Grant-Based Support and Just Transition

25 Nov, 2025
COP30 Climate Finance: Indonesia Demands Grant-Based Support and Just Transition

At the close of COP30 in Belém, Brazil, Indonesia made a powerful case. The Indonesian delegation emphasized that political pledges are not enough, what developing nations truly need is predictable, grant-based financing, access to affordable technology, and a just transition mechanism that ensures climate action does not deepen debt burdens. This stance, articulated by Indonesia’s Ministry of Environment / KLH, highlights the nation’s leadership role in global climate diplomacy and its call for tangible, equitable climate finance solutions.

In this article, we explore Indonesia’s agenda at COP30, the main outcomes related to climate funding, and why COP30 climate finance may represent a turning point, not just for Indonesia, but for the broader Global South.

Indonesia’s COP30 Vision: From Ambition to Action

At COP30, Indonesia made clear that its participation was not merely rhetorical. According to the Ministry of Environment, the country “came not to deliver promises, but to bring concrete, measurable policies” toward a low-carbon and equitable future. Key in Indonesia’s vision is a shift in how climate finance is structured. Rather than loans that could burden developing countries with debt, Indonesia pushed for grant-based support, predictable over time.

In addition, Indonesia strongly advocated for a Just Transition Mechanism under the United Nations Framework Convention on Climate Change (UNFCCC). This mechanism, as Indonesia frames it, must be fair, not impose new debt on developing nations, and protect both workers and vulnerable communities. Furthermore, Indonesia reiterated its demand for reform of the global financial architecture, ensuring that climate finance is not only more accessible but also reliably available, especially for adaptation, mitigation, loss and damage, and low-carbon transitions.

Key Demands: Grant-Based Support, Technology, and Transitions

One of Indonesia’s most pronounced demands at COP30 was for grant-based funding. The country argued that only non-debt instruments can help developing nations scale their climate action without risking economic stability. In its closing statement, Indonesia called for funding that is predictable, not one-off donations, but structured, long-term commitments.

Closely tied to this call is Indonesia’s push for access to affordable technology. The delegation emphasized that for climate action to be equitable, developing countries must have access to green technologies without prohibitive costs. The third corner of Indonesia’s demands is the just transition. Climate transition, Indonesia argues, must not worsen social inequalities or burden vulnerable communities. Through a Just Transition Mechanism, wealthy nations must support poorer ones in shifting to low-carbon economies in a way that is fair and inclusive. This is not just altruistic rhetoric. Indonesia wants to make sure that transitions, away from fossil fuels and toward clean energy, do not create new dependencies or exploitative financial conditions for developing nations.

Outcomes and Challenges at COP30

COP30 officially ended on November 21 in Belém, Brazil, though not all negotiations reached final agreement. Despite that, Indonesia’s core messages resonated. The Minister of Environment affirmed that COP30 was more than a political gathering, it must serve as a foundation for global action, not just a list of pledges. Indonesia, together with the G77 + China group, continues to press for the establishment of a UNFCCC Just Transition Mechanism. They argue that without such a formal structure, transitions may disproportionately disadvantage developing countries.

On the financial side, Indonesia reiterated its call for reforming the international climate finance architecture. It demanded that wealthy nations scale up climate funding to reach US$1.3 trillion annually by 2035, with a dedicated portion (US$300 billion) earmarked for developing countries.

Indonesia also underscored the importance of Article 6 of the Paris Agreement, which deals with market and non-market mechanisms for carbon trading. The country wants technical readiness funding and a robust international registry. There are, however, significant challenges. According to reports, despite Indonesia’s diplomatic push, not all of its suggestions were accepted. Some decision texts still contain bracketed language, meaning they are not yet fully agreed. Moreover, while Indonesia demands grant-based finance, many existing climate finance mechanisms rely on loans, concessional funding, or a mix, meaning a significant shift is required to meet Indonesia’s vision.

Why Indonesia’s COP30 Climate Finance Agenda Matters

Indonesia’s leadership at COP30 signals a broader trend: the Global South is no longer content with symbolic commitments. Rather, countries demanding climate justice are pushing for real, sustained support that will allow them to transition without compromising development or sovereignty.

First, by insisting on grant-based finance, Indonesia highlights the limitations of debt-based climate funding. Loans may seem helpful in the short run, but over time they risk undermining developing economies already facing fiscal constraints.

Second, the demand for just transition is crucial. Climate action must protect social justice, not just carbon emissions. This means safeguarding workers, ensuring inclusivity, and building financial mechanisms that support equitable change.

Third, by pushing for reforms in the global financial architecture, Indonesia is urging a systemic transformation. It wants climate finance that’s not only fair, but also predictable and scalable. A $1.3 trillion annual goal by 2035 is ambitious, but it's part of a bold vision for shared climate responsibility.

Fourth, Indonesia’s focus on Article 6 underlines the importance of creating transparent, credible carbon markets. A well-functioning system could benefit developing nations by giving them access to carbon trading opportunities, but only if the technical and financial groundwork is laid first.

Finally, Indonesia’s diplomacy at COP30 strengthens its status as a climate leader in Southeast Asia and the Global South. By championing both environmental integrity and social equity, Indonesia positions itself not just as a recipient of climate aid, but as a driver of global climate governance.


COP30 may have officially ended, but for Indonesia, the real work is just beginning. The country’s persistent advocacy for COP30 climate finance, particularly grant-based financing, just transition mechanisms, and fair technology access, reflects a deeply rooted belief that climate action must be equitable. If implemented, these demands could reshape how climate finance works globally, putting greater power in the hands of developing nations.

Indonesia’s message is clear: political ambition is not enough. What matters most now is real, predictable support, so that every country can transition in a way that is fair, sustainable, and just.

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