Jakarta. State-owned bank BNI has fully allocated the Rp 5 trillion ($330 million) proceeds from the Green Bond issuance towards sustainable economic projects and initiatives to support greenhouse emission reduction programs.

The bank said on Tuesday that 61.77 percent of the proceeds have been designated for environmentally friendly transportation projects, 11.24 percent for renewable energy projects, and 10.33 percent for the construction of "green buildings".

Additionally, 15.26 percent of the Green Bond funds have been utilized for waste-to-energy projects and the remaining 1.4 percent for sustainable natural resource management.

Among the notable contributions, BNI's involvement in the development of the newly-built Light Rail Transit (LRT) system in Greater Jakarta is expected to reduce carbon emissions by 109,823 tons annually. Solar power plants funded by BNI will contribute to an additional reduction of 3,037 tons of carbon emissions per year.

Furthermore, the Green Bond proceeds have been used to finance mini-hydropower plants and biogas power plants, resulting in an annual reduction of carbon emissions by 26,686 tons and 24,863 tons, respectively.

Green buildings, constructed using the funds from the Green Bond, are projected to reduce carbon emissions by 69,339 tons annually.

The bank has also directed funds towards waste-to-energy projects, converting 150,410 tons of waste into an energy source.

Additionally, BNI has supported land rehabilitation programs covering 314,387 hectares certified by the Forest Stewardship Council, and the planting of 31,269 trees in Papua.

“This is a quite remarkable achievement. We are committed to actively helping the government in achieving the net zero emission target,” BNI Corporate Secretary Okki Rushartomo said.

He claimed that BNI has taken steps to calculate emissions when engaging with businesses in sectors such as plantation, mining, commodities, processing industry, pulp and paper, construction, and coal-fired power plants.