Indonesia is moving forward with its $20-billion energy transition plan, despite the United States withdrawing from international climate agreements. This partnership is key to supporting clean energy goals in developing nations.
At the end of 2022, Indonesia, the world’s leading coal exporter and heavily reliant on coal for power, signed a Just Energy Transition Partnership (JETP). Initially co-led by the U.S. and Japan, the partnership also included countries such as Canada, Denmark, the EU, France, Germany, Italy, Norway, and the UK.
However, the Trump administration pulled the U.S. out of these agreements, which also impacted similar coal-to-clean energy initiatives in Vietnam and South Africa. This was part of a broader move to withdraw from climate commitments, including the Paris Agreement.
Under these partnerships, wealthy nations promised to fund efforts to help developing countries generate renewable energy and reduce emissions.
Now, Indonesia’s JETP commitments are co-led by Japan and Germany, according to Airlangga Hartarto, Indonesia’s Coordinating Minister for Economic Affairs. He emphasized that the U.S. exit does not diminish the support from the remaining nine partner countries for Indonesia’s goal of achieving net-zero emissions.
So far, the international partners have secured $1 billion in guarantees through multilateral development banks, Hartarto said. Additionally, 54 green energy projects in Indonesia have already attracted international funding commitments totaling $1.1 billion.
In November, Indonesia’s President Prabowo Subianto announced the country’s plan to phase out all coal-fired and fossil-fueled power plants within 15 years. “Indonesia is rich in geothermal resources, and we plan to phase out coal-fired and all fossil-fueled power plants within the next 15 years,” Subianto said at the G20 summit in Brazil.
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