Indonesia along with IPG and EU have launched the Just Energy Transition Partnership at the G20 Summit to help Indonesia meet its climate targets
The President of European Commission – Ursula von der Leyen, the President of Indonesia – Joko Widodo and the leaders of the International Partners Group (IPG), co-led by the United States (U.S.), Japan, Canada, Denmark, France, Germany, Italy, Norway and the United Kingdom (U.K.) have launched the Just Energy Transition Partnership (JETP) to help Indonesia meet its climate targets.
The JETP was launched during the Partnership for Global Infrastructure and Investment (PGII) event at the G20 Summit on 15-16 November 2022 in Bali.
The European Commission and IPG will help Indonesia with associated financing to support the Asian country in an ambitious and just energy transition, consistent with the Paris Agreement goals and contributing to keep 1.5 °C global warming limit within reach.
It includes an accelerated power sector emissions reduction pathway to net zero by 2050 and a strategy based on the expansion of renewable energies, the phase down of on and off-grid coal-fired electricity generation, and further commitments to regulatory reforms and energy efficiency.
Taking it to twitter, Ursula tweeted,
The Just Energy Transition Partnership for 🇮🇩 will chart a roadmap to a greener future – a future full of opportunities for the Indonesian people.
— Ursula von der Leyen (@vonderleyen) November 15, 2022
They will reap the benefits of the transformation of their economy.
Europe fully supports the Partnership with #GlobalGateway
The JETP will chart a roadmap to a greener, cleaner future in the country – and a future full of opportunities for the Indonesian people. The European Union (E.U.) with IPG will back Indonesia in its endeavours to develop an investment plan that will put them in the right path to achieve significant new climate targets and policies to reduce greenhouse gas emissions and support those impacted communities along the process.
The implementation of concrete actions achieving a just energy transition for workers and communities, particularly those most affected by an energy transition away from coal is an essential aspect of this partnership.
The E.U., Indonesia and IPG will work together over the next 6 months to build up that concrete plan for investments, financing and technical assistance.
Overall, the aim of this long-term partnership with Indonesia is to mobilize an initial U.S. $ 20 billion (€ 19.4 billion approximately) in public and private financing over a 3 to 5 years period, using a mix of grants, concessional loans, market-rate loans, guarantees, and private investments.
Of this, U.S. $ 10 billion, will be mobilised by the IPG members. The EU and Member States which are part of the IPG intend to mobilize around U.S. $ 2.5 billion. From this amount, the E.U. will support the Partnership via the European Investment Bank (EIB) with € 1 billion to support eligible projects that contribute to the decarbonization of Indonesia’s power system through the development and integration of renewable energy. In addition, the EU will earmark 25 million in grants and technical assistance.
This is the second such partnership after the launch of the JETP with South Africa at the COP26 in Glasgow. These Partnerships represent a powerful example of action through a global collaboration between emerging economies and international partners to jointly tackle the climate crisis.
