Indonesia races to secure new funding for energy transition after US exit from Paris Agreement
With American funding in doubt, Indonesia is turning to Japan, South Korea and China to keep its coal phase-out and renewable energy goals on track
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[JAKARTA] Indonesia’s agenda to phase out coal and ramp up renewable energy is facing fresh uncertainty as the US’ withdrawal from the Paris Agreement threatens key funding under the Just Energy Transition Partnership (JETP).
With a US$20 billion commitment – originally pledged at the 2022 Group of 20 (G20) summit – hanging in the balance, experts said Indonesia must now look to alternative financiers from countries such as Japan, South Korea and China to stay on track with its net-zero ambitions.
The funds would be used to finance the early decommissioning of 13 coal-fired power plants, with an estimated cost of US$4.6 billion.
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