Indonesia has joined the coal phase-out transition programme

[ASEAN NOW Content Team]

 

Indonesia has joined a pilot initiative set up by the Climate Investment Funds, a worldwide climate financing organisation, to help it transition from coal to sustainable energy (CIF).

The ACT (Accelerating Coal Transition) programme has a budget of US$2.5 billion.
According to a CIF statement, the initial beneficiaries are India, the Philippines, and South Africa, as well as Indonesia, which together account for over 15% of global coal-related emissions.

 

"Decarbonisation as an agenda should not be controversial," said John Yeap of Pinsent Masons, the law firm behind Out-Law. "However, its implementation will need to factor in considerations around climate justice, particularly for nations like Indonesia, which needs to maintain economic development while meeting its commitments to net zero."

 

"Undoubtedly, all governments would prefer to discover a solution that would allow for the rapid decommissioning of coal power plants while maintaining their growth trajectory.
"The impetus for speeding the move away from coal will be the design and successful implementation of energy transition mechanisms, customised to the special considerations of each nation," he said.

The monies will be used to fund projects that will improve the capacity of participating countries to manage the energy transition, repurpose or retire coal assets, and create long-term economic and social opportunities for coal-dependent people.

 

ACT will collaborate with six international development institutions to give participating coal transition nations with a full financial package as well as technical help.
ACT's next phase aims to help more countries due to high demand.

The United States, the United Kingdom, Germany, Canada, and Denmark have all contributed funds to the programme.

 

Indonesia was one of the signatories to the COP26 Global Coal to Clean Power Transition Declaration.
It did, however, leave out a paragraph promising to "stop issuing new permits for unabated coal-fired power generation projects, stop new construction of unabated coal-fired power generation projects, and stop new direct government funding for unabated international coal-fired power generating."