Indonesia will receive $20 billion from wealthy nations through a variety of funding mechanisms to lessen its reliance on coal and expand its renewable energy generation. The Just Energy Transition Partnership (JETP) for Indonesia between the world’s third-largest coal extractor and the U.S., EU, Japan, Canada, and five European nations — supplemented by additional support pledged by major financial institutions — was announced Tuesday on the sidelines of the G20 summit in Bali. For its part, Indonesia pledged to ensure its power sector emissions will peak by 2030 and would achieve zero power sector emissions by 2050. The Indonesia JTEP is the second such agreement (the first being with South Africa at COP26), and agreements like it are widely viewed as being essential to helping developing countries transition and expand their economies to and with renewable energy, and similar deals are already being discussed with Vietnam, Senegal, and India.
“Right now, with regard to climate activists, there is increasing criminalization, intimidation and threats,” Grita Anindarini of the Indonesian Center for Environmental Law said in a statement. “Civil society organizations are calling for the ‘just’ aspects of the Just Transition, including transparency, human rights, and economic justice. We can say that the deal will be credible if these aspects are included.” The countries party to the agreement will provide about half of the funding in the form of concessionary loans, grants, and equity while private entities have promised to arrange the rest. (AP, FT $, Washington Post $, Reuters, Quartz, New York Times $, BBC, Semafor, Washington Post $)