United States, Japan, and other partners raises $20 billion to move Indonesia away from coal

The Indonesia Just Energy Transition Partnership (JETP) has been in the works for over a year. It is based on a $8.5 billion initiative launched last year to assist South Africa in decarbonizing its power sector. Indonesia has committed to limiting emissions from the power sector to 290 million tonnes by 2030, with a peak that year. The public and private sectors have each pledged roughly half of the funds. Multilateral development banks and the Climate Investment Funds will account for roughly one-third of the $10 billion in public funding for Indonesia’s JETP, which is being co-led by the US and Japan on behalf of the other G7 democracies. The private sector will contribute half of the funds, with seven global banks taking part.
In addition, Indonesia has set a goal of reaching net-zero emissions in its power sector by 2050, a decade earlier than its current target. Over those years, Indonesia’s annual emissions reduction would be greater than Britain’s annual power sector emissions. The plan will reduce greenhouse gas emissions by 300 million tonnes by 2030 and by well over 2 billion tonnes by 2060. Officials from the US Treasury and State Department said the private sector would contribute half of the $20 billion.
The US will collaborate with Indonesia to develop a 90-day plan. South Africa announced this month that the amount of funding needed to phase out coal is much greater than the amount raised through its JETP mechanism.

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