Indonesia Just Energy Partnership
Indonesia Just Energy Transition Partnership (JETP) was launched at the G20 Summit’s side event Partnership for Global Infrastructure and Investment (PGII).
What is Indonesia Just Energy Partnership?
Indonesia Just Energy Transition Partnership (JETP) is a long-term political agreement between the Indonesian Government and International Partners Group (IPG), with the US and Japan as joint leads, along with the United Kingdom, Germany, France, the European Union, Canada, Italy, Norway, and Denmark.
Indonesia is among the world’s top 10 greenhouse gas emitters. The JETP will help the country to achieve an accelerated shift from fossil fuel dependence to renewable energy sources. It seeks to minimise emissions from power sector, phase down coal usage and create a strategy based on expansion of renewable energy. The agreement seeks to achieve this energy transition in a manner that will not adversely affect the workers, communities and societal groups. This will deliver enhanced climate action, boost economic growth, generate skilled jobs, bring down pollution and create a prosperous future for Indonesians. It will also strengthen political commitment to phase down coal-fired power in the medium term.
How will this agreement be implemented?
To achieve its objectives, the Indonesia JETP will mobilize 20 billion USD over the next 3 to 5 years via grants, concessional loans, market-rate loans, guarantees and private investments. The IPG members will mobilize at least 10 billion USD of public money. Glasgow Financial Alliance for Net Zero (GFANZ) Working Group will mobilize at least 10 billion USD of private finance.
Background
Indonesia JETP is the second of its kind after the launch of the JETP with the South Africa in COP26. The JETP was pioneered at the COP26 Summit in Glasgow in 2021. Under the South Africa JETP, South Africa and the IPG of France, Germany, the UK, the US and the EU committed to a long-term 8.5 billion USD JETP, setting new precedent in the global just energy transition.
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Month: Current Affairs – November, 2022
Category: Environment Current Affairs • International / World Current Affairs