US and EU unveil new partnership to help Indonesia move away from fossil fuels
The partnership will mobilise US$20 billion over the next three to five years to accelerate a just energy transition.
NUSA DUA, Indonesia: The leaders of Indonesia, the United States and the European Commission have unveiled a new energy partnership aimed at helping Indonesia transition away from fossil fuels towards renewable sources.
Joko Widodo, Joe Biden and Ursula von der Leyen made the announcement on the first day of the Group of 20 (G20) Leaders’ Summit in Bali where the leaders of the world’s biggest economies discussed various issues, including the ongoing global energy crisis.
Indonesia is this year’s rotating president of the G20. It is also the world’s biggest coal exporter but Mr Widodo said that his country wants to develop a green industry and drive sustainable development.
“Indonesia is serious about developing a green industry, including the electric car industry ecosystem,” said Mr Widodo.
The Indonesia Just Energy Transition Partnership (JETP) will mobilise US$20 billion over the next three to five years to accelerate a just energy transition.
Contributions to the JETP include US$10 billion in public sector pledges, and a commitment to mobilise and facilitate US$10 billion in private investment.
The partnership is co-led by Japan, along with the United Kingdom, Germany, France, Canada, Italy, Norway and Denmark.
It is hoped that the partnership will not only deliver enhanced climate actions but will also help support Indonesia’s economic growth and provide new skilled jobs.
With support from the partners, Indonesia will develop a comprehensive investment plan to achieve significant new targets and policies to reduce greenhouse gas emissions.
Mr Biden said Indonesia has shown tremendous leadership and ambition throughout the development of the partnership.
“The resulting new and accelerated targets demonstrate how countries can dramatically cut emissions and increase renewable energy while advancing a commitment to creating quality jobs and protecting livelihoods and communities,” he said.
Meanwhile, European Commission president Ursula von der Leyen said that the JETP will chart a roadmap to a greener, cleaner future in Indonesia and a future full of opportunities for its people.
“They will be the ones reaping the benefits of the transformation of their economy, as Indonesia becomes a renewables hub,” she said.
In the next six months, Indonesia and the other countries aim to finalise the details of the plan, including the structure of financing.