Financed Emissions
Green Lending Grew 18% Across Indonesian Banks in 2025
Green Lending Grew 18% Across Indonesian Banks in 2025.
Green Bond Secondary Market Liquidity
Green Bond Secondary Market Liquidity. Sector data and analysis tracking Indonesia's progress towards a low-carbon, sustainable financial system.
Overview
This guide brings together practical guidance for embedding sustainable finance into everyday lending and investment decisions. Core terms such as financed emissions are defined as you go, and each recommendation is grounded in the current Sustainable Finance Taxonomy (opens in a new window).
The approach is built around a few core principles:
- Treat climate and nature-related risk as core to credit decisions, not a reporting afterthought.
- Use comparable, verifiable data wherever a judgement call would otherwise be made.
- Align every financing decision with a credible, time-bound transition pathway.
Putting it into practice follows three broad steps:
- Baseline the portfolio's financed emissions against a recognised methodology.
- Set sector-level targets and the lending policies needed to meet them.
- Report progress each year and adjust as the underlying data improves.
The transition will be financed by the institutions that can see their risks most clearly. Those that treat climate and nature as core credit factors, rather than reputational extras, will be the ones still lending profitably a decade from now.
Key figures at a glance
| Indicator | 2022 | 2023 | 2024 |
|---|---|---|---|
| Green lending (USD bn) | 0.8 | 1.2 | 2.4 |
| Sustainability-linked loans (USD bn) | 0.5 | 1.1 | 1.9 |
| Financed emissions (MtCO₂e) | 9.4 | 8.6 | 7.1 |
| Clients with transition plans | 18 | 34 | 57 |
| Institutions reporting | 8 | 12 | 30 |
Common questions
A few points that come up often when teams first put this into practice:
Financed emissions follow the PCAF standard, attributing a share of each borrower's or investee's emissions to the financing provided.
Where primary data is unavailable, sector averages are used and clearly flagged as estimates so the gaps stay visible.
Explore the data
Disclosure is not the destination; it is the starting line. The value comes from what institutions do once they can finally see where their emissions and their risks actually sit.
Use this guidance alongside the resources linked throughout, and adapt each step to your institution's own portfolio, clients, and risk appetite.
Data Dashboard
Other data insights
Explore more data and analysis tracking Indonesia's progress on sustainable finance.
See our Data Dashboard
Green Lending
Mapping Financed Emissions in the Power Sector
Mapping Financed Emissions in the Power Sector.
