Cooperatives as financial institutions operating at the grassroots level are one of the institutions that are quite vulnerable to climate change. Based on the assumption that climate change has potential to cause risks that can reduce the income level of cooperative members. However, cooperatives exposure to climate change issues tends to be minimal. Cooperatives have a strategic position in the climate change mitigation and adaptation action landscape, namely as financial channeling institutions to encourage the transition from fossil energy to renewable energy.

Yayasan Rumah Energi (YRE) supported by the ClimateWorks Foundation through the Green Cooperative Project takes the initiative to build stakeholder awareness for sustainable financing related to climate change and build knowledge of the potential of cooperatives in Indonesia in financing climate change at the grassroots level.

In the framework of project implementation, YRE held a Roundtable Discussion entitled The Role of Cooperatives for Climate Change (SDG 13): As agents of change for microfinance in a sustainable financial ecosystem” on Monday (13/11). This discussion activity was attended offline by representatives from stakeholders such as Ministry of Cooperatives and SMEs (Kemenkop UKM), Financial Services Authority (OJK), Environmental Management Agency (BPDLH), Cabinet Secretariat, Directorate General of New Renewable Energy Energy Conservation (EBTKE) Ministry of Energy and Mineral Resources (KESDM), Main Credit Cooperative (INKOPDIT), Indonesian Renewable Energy Cooperative (Kopetindo), representatives of Civil Society Organizations (CSO). Online, this discussion activity was also attended by sixteen representatives of cooperatives in Indonesia. This discussion activity is generally intended to obtain feedback from stakeholders to complete the preparation of policy papers and operational guidelines. These two documents are expected to be an opening for cooperatives to be able to contribute to financing climate change.

Lead Writer and Researcher for the Green Cooperatives Project, Agam Subarkah, revealed that there are no regulations governing the role of cooperatives in climate financing. He gave an example of how the banking sector OJK has issued a Green Taxonomy, while in the cooperative sector, the practice already exists but there are still no policy regulations relating to climate financing. He emphasized that cooperatives contribute almost 6.2% of the national GDP, with total assets reaching IDR 250.98 trillion and a substantial business volume around IDR 182.35 trillion. According to him, the focus is on how to empower local communities and local SMEs, including cooperatives, which have great potential to become a driving force in green development efforts in Indonesia.