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A number of wealthy international locations present 20 billion {dollars} to Indonesia to assist it get out of coal

Indonesia has simply secured $20 billion in funding from wealthy international locations and monetary establishments to scale back its dependence on coal and attain carbon neutrality 10 years sooner than anticipated, i.e. in 2050. Germany, the France, Italy, the UK, Norway, Japan, Canada and the USA take part on this financing.

Of this envelope of 20 billion {dollars}, ” $10 billion will come from public funding and $10 billion from personal funding”, we element throughout the French delegation for the local weather. This announcement was made official throughout the framework of the G20 summit which is being held in Bali, Indonesia, on November 15 and 16, in parallel with the twenty seventh World Local weather Convention (COP27) in Sharm el-Sheikh, Egypt.

Indonesia, the world’s largest coal exporter and third largest producer

“It is a essential announcement as a result of Indonesia is the third largest coal producer on the planet. And it undertakes, in return, to considerably scale back its emissions, ”says one once more throughout the French delegation.

In keeping with the Worldwide Power Company (IEA), Indonesia ranked third on the planet for coal producers in 2020 with 564 million tonnes, or 7.4% of world manufacturing, and first amongst exporters. of coal with 396 million tons, or 32.7% of world exports.

Indonesia, the fourth most populous nation on the planet, can also be the sixth largest client of coal. It thus represents 2.2% of world consumption, in keeping with knowledge from the BP statistical overview of world vitality, July 2021. Almost 60% of its electrical energy manufacturing is predicated on this black rock, which emits notably CO2, which is the primary gasoline answerable for international warming.

“A really sturdy sign”

The federal government Indonesian has already recognized a number of coal-fired energy crops that may be shut down representing a complete energy of 15 gigawatts (GW). In keeping with Indonesian Finance Minister Sri Muliani Indrawati, this mechanism is ” a rare step » seeing ” a really sturdy sign not solely within the Pacific however all around the world”.

“Indonesia is house to almost 300 million individuals, tens of thousands and thousands of whom are in danger from pure disasters resulting from local weather change, particularly these residing in low-lying areas,” on this archipelago of 17,000 islands, she stated. She stated she hopes her nation can ” pace uphe transition to renewable vitality »anticipating the closure of coal-fired energy crops, whereas acknowledging that it was not ” not simple “, particularly due to prices.

A primary experiment in South Africa

This funding is a part of a ” partnership for a simply vitality transition”, (or Simply Power Transition Partnership in English – JETP). It’s a partnership between a creating nation and a coalition of wealthy international locations.

That is the second time that this mechanism has been put in place. The primary noticed the sunshine of day final yr on the event of COP26 in Glasgow round South Africa. Offered as “one of many successes of Glasgow”, this partnership resulted in funding of 8.5 billion {dollars} from France, the UK, Germany, the USA and the European Union.

Goal: to assist South Africa transition out of coal and meet its local weather commitments, whereas making certain that the transition is accompanied by retraining for staff within the coal business and the event of capacities within the renewable. South Africa gave the impression to be the perfect testing floor for this new mechanism. Its economic system is, in actual fact, extremely depending on coal, which accounts for 80% of its electrical energy manufacturing and employs 100,000 individuals.

Vietnam, Senegal and India candidates

Nevertheless, in keeping with Thibaud Voïta, affiliate researcher on the Power and Local weather Middle of the French Institute of Worldwide Relations (Ifri), this system in South Africa is lagging behind. As well as, many observers are apprehensive concerning the nation’s indebtedness, whereas a big majority of the envelope of 8.5 billion {dollars} might be granted within the type of loans at preferential charges and never donations.

Discussions are at present underway at COP27 to copy this mannequin in Vietnam and Senegal. However they should not in all probability not “ end result on the finish of this COP, in keeping with info from the French delegation for the local weather. ” Discussions are additionally underway round India, however nothing to maneuver ahead in a really important method,” we add.

(With AFP)

Bertrand Piccard dwell from COP27: “When alternatives are discovered within the least anticipated locations”