Indonesia delays investment plan for US$20 billion climate deal
INDONESIA has delayed the launch of a much-anticipated investment plan to support a landmark US$20 billion climate financing deal until the end of the year.
The hold-up is due to new data that needs to be integrated and should allow for more input from the public, Indonesia’s Just Energy Transition Partnership (JETP) secretariat said in a statement. A draft has been submitted to the Indonesian government and JETP partners.
The blueprint, which had been expected this week, is expected to detail how Indonesia plans to transition its power supply to renewable sources and cut greenhouse-gas emissions, among other plans.
Indonesian President Joko Widodo and his US counterpart Joe Biden made headlines in November last year by signing the deal, with measures ranging from upgrading Indonesia’s grid to spurring renewable-energy investment.
At its heart, it is about speeding up the move away from coal – by buying out power plants and restructuring debt, so they can be closed early. This deal is considered a potential model for other cash-poor, coal-dependent countries.
Under the deal, funds would come from a mix of government and private sources. But Indonesian officials have expressed concern about just how much would be made up of grants, and where cheaper funding would be allocated.
The transition in Indonesia will require US$2 trillion of investment into its energy system through 2050, and reaching net zero by that date could cost US$3.5 trillion.
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