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Indonesia and International Partners Secure Groundbreaking Climate Targets and Associated Financing

Today, at the Partnership for Global Infrastructure and Investment (PGII) event at the G20 Summit, President Joko Widodo of Indonesia and leaders of the International Partners Group (IPG) of likeminded countries, co-led by the United States and Japan, and including Canada, Denmark, the European Union, France, Germany, Italy, Norway, and the United Kingdom, launched a Just Energy Transition Partnership (JETP) developed with Indonesia during its G20 Presidency. The landmark partnership supports an ambitious and just power sector transition in Indonesia, consistent with keeping 1.5 °C global warming limit within reach.

Indonesia will work, with support from international partners, to develop a comprehensive investment plan to achieve significant new targets and policies to reduce GHG emissions and support impacted communities by:

  • Peaking total power sector emissions by 2030, shifting its projected emissions peak forward.
  • Capping power sector emissions at 290 megatons of CO2 in 2030, down from baseline value of 357 MT CO2.
  • Establishing a goal to reach net zero emissions in the power sector by 2050, bringing forward Indonesia's net zero power sector emissions target by ten years.
  • Accelerating the deployment of renewable energy so that renewable energy generation comprises at least 34 percent of all power generation by 2030, which would roughly double the total renewables deployment over the course of this decade compared to current plans.

To achieve these targets, this long-term partnership intends to mobilize an initial $20 billion in public and private financing over a three-to-five-year period, using a mix of grants, concessional loans, market­rate loans, guarantees, and private investments. Contributions to the JETP include $10 billion in public sector pledges, and $10 billion in private investment from an initial set of private financial institutions coordinated by the Glasgow Financial Alliance for Net Zero (GFANZ), including Bank of America, Citi, Deutsche Bank, HSBC, Macquarie, MUFG, and Standard Chartered. The partnership will also leverage the expertise, resources, and operations of the multilateral development banks.

A successful partnership is expected to help shift Indonesia's power sector peaking date forward by approximately seven years and result in a cumulative reduction of more than 300 megatons in greenhouse gas emissions through 2030 and a reduction of well above 2 gigatons through 2060 from Indonesia's current trajectory.

Over the next six months, the Parties will work together to develop a concrete plan for investments, financing, and technical assistance to support these ambitious goals.

Click here for the full press release

 

Original article link: https://ec.europa.eu/commission/presscorner/detail/en/ip_22_6893

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