Indonesia’s green transition

Indonesia and Denmark sign extensive green cooperation agreement

1 December 2022

Photo: Climate Change News

Indonesia’s green transition

Denmark and several other nations hope to mobilize $20 billion in public and private funds to create a platform for cooperation that will allow Indonesia to transition its coal-based energy sector to one based on sustainable energy sources to support the country’s green transition. The agreements were an important step for the country, the world’s third-largest producer of coal.

The $20 billion is intended to be used to close coal-fired power plants in Indonesia and reduce emissions from the country’s energy sector to 290 million tons by 2030, rather than the 2037 target that Indonesia initially agreed to in order to qualify for the funding. Green energy sources must account for at least 34% of total energy production by 2030 if the green transition is to be completed on time.

The United States’ Special Envoy for Climate Change, John Kerry, representing the US in the coalition, called it a “ground-breaking declaration” and said the coalition had overcome numerous challenges to achieve its goals. This relationship, according to Indonesian President Joko Widodo, will benefit society as a whole.

Other partners in this long-term political agreement include the United Kingdom, Germany, France, Canada, Italy, Norway, and Denmark, led by Japan and the US.

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