Coal | Indonesia US, Japan & others to mobilise $20 billion to accelerate Indonesia's coal phase-out goals
Sharm el-Sheikh: Several countries, including the US and Japan, have come together to raise $20 billion in public and private finance to help Indonesia close its coal-fired power plants and move coal peak emissions date by seven years to 2030, Reuters reported.
The Indonesia Just Energy Transition Partnership (JETP), more than a year in the making, “is probably the single largest climate finance transaction or partnership ever”, a U.S. Treasury official told reporters, said the report.
Similar funding was announced for South Africa at COP 26 summit held in Glasgow last year.
The financing will be in the form of grants and concessional loans over a three- to five-year period.
In order to access this, the country has to restrict power sector emissions to 290 million tonnes by 2030, with a peak that year, said the report.
Indonesia has also agreed to achieve power sector emissions to a net-zero by 2050, a decade ahead of the target set in its national climate plan.
Also, it will accelerate the deployment of renewable energy to twice its current speed so that it accounts for at least 34 percent of all power generation by 2030, according to the report.
“Indonesia is committed to using our energy transition to achieve a green economy and drive sustainable development,” President Joko Widodo said in a statement. “This partnership will generate valuable lessons for the global community.”
“We’ve built a platform for cooperation that can truly transform Indonesia’s power sector from coal to renewables and support significant economic growth,” U.S. Special Envoy on Climate Change John Kerry said, the Reuters report said.
U.S. Treasury and State Department officials said half of the $20 billion would come from the private sector, with seven global banks participating: Bank of America Citigroup Deutsche Bank, HSBC, Standard Chartered, Macquarie and MUFG, the report said.
The U.S. officials said public finance would include concessional lending and equity, as well as some grants, it added.
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