Indonesia has delayed the launch of a much-anticipated investment plan to support a landmark $20 billion climate financing deal until the end of the year.
(Bloomberg) — Indonesia has delayed the launch of a much-anticipated investment plan to support a landmark $20 billion climate financing deal until the end of the year.
The hold-up is due to new data that need to be integrated and should allow for more input from the public, Indonesia’s Just Energy Transition Partnership secretariat said in a statement. A draft has been submitted to the Indonesian government as well as JETP partners.
The blueprint, which had been expected this week, is due to detail how Indonesia plans to transition its power supply to renewable sources and cut greenhouse emissions, among other plans.
Indonesian President Joko Widodo and his US counterpart Joe Biden made headlines in November last year by signing the deal that ranges from upgrading Indonesia’s grid to spurring renewable energy investment. At its heart, it’s about speeding up the move away from coal — by buying out power plants and restructuring debt so they can be closed early. This deal is considered a potential model for other cash-poor, coal-dependent countries.
Under the deal, funds would come from a mix of government and private sources. But Indonesian officials have expressed concern about just how much would be made up of grants, and where cheaper funding would be allocated.
The transition in Indonesia would require $2 trillion of investment into its energy system through 2050 and reaching net zero by that date could cost $3.5 trillion, according to BloombergNEF.
–With assistance from Eko Listiyorini.
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