In order to help decarbonise its power sector and to increase the role that renewables play in its overall energy mix; Indonesia has kicked off a plan to unleash $20 billion in global financing.
The $20 billion funds that will be received from lenders, including the United States and Japan, will be disbursed with immediate effect helping Indonesia march forward with its plan to cut carbon emissions to 250 million metric tons for its on-grid power sector by the end of this decade.
Considering, Indonesia is one of the world’s most prolific carbon emitters, without the funds, Indonesia’s carbon emissions would likely exceed 350 million metric tons. Indonesia’s plan is to increase the role that renewable energy plays in its total power generation mix to 44% by 2030, just 12% last year.
“We have to move quickly because 2030 is less than seven years away. The partnership must be enhanced and accelerated to do the priority projects, including to immediately realise the financing commitments,” said, Ad-Interim Chief Minister for investment affairs, ErickThohir.
But the country needs more than $20 billion to reach its ambitious green goals. According to the country’s Comprehensive Investment and Policy Plan, or CIPP, nearly $100 billion will be needed to reach its goals, including $67 billion spread across 400 projects that need to start by 2030 to reach its target. However, itis expected that, the $20 billion would provide impetus to the plans and help attract even more investments.