Indonesia's $20 Billion Deal to Cut Coal Not Enough, Says Ember

  • In Business
  • 2023-01-26 00:01:00Z
  • By Bloomberg

(Bloomberg) -- A landmark $20 billion deal to help fund Indonesia's transition away from coal isn't enough to put the country on track to meet global climate goals, according to energy think tank Ember.

Most Read from Bloomberg

  • Hindenburg's Short Sell Call Shaves $12 Billion Off Adani Stocks

  • US Confronts China Over Companies' Ties to Russia War Effort

  • Tech-Led Slide Fades; Tesla Whipsaws on Earnings: Markets Wrap

  • Josh Kushner Is Richer Than Trump After Billionaires Back His Firm

  • US and Germany Set to Send Tanks to Ukraine, Breaking Deadlock

The Just Energy Transition Partnership brokered last year between Indonesia, the US and Japan caps the archipelago's power sector emissions at 290 million tons by 2030 and sets a target to reach net zero two decades later.

Indonesia will need to do more than that to help keep global temperatures from rising more than 1.5 degrees Celsius from the pre-industrial average, Ember said in a report released Thursday. That's the level climate scientists say is key to avoiding the worst impacts of planetary warming.

See also: The Biden-Jokowi Deal Is Just One Step to Turn Indonesia Green

The analysis underscores the challenges facing less-developed economies as they seek to reap the rewards of industrial development that richer nations experienced decades ago without generating massive amounts of planet-heating emissions.

Indonesia needs to retire more coal power plants earlier and reduce the operational levels of the remaining ones, while also accelerating the adoption of renewable energy, Ember analysts including Achmed Shahram Edianto said in the report. The country's power sector would need to reach net zero a full decade ahead of the JETP target in order to be on a 1.5C pathway, they said.

Most Read from Bloomberg Businessweek

  • How to Be 18 Years Old Again for Only $2 Million a Year

  • Wind Turbines Taller Than the Statue of Liberty Are Falling Over

  • Elon Musk's Epic Quest for LOLs Is Only Hurting Tesla

  • Is Europe Sleepwalking Into Another War?

  • Is a US Recession Near? Making the Call Is Trickier Than Ever

©2023 Bloomberg L.P.


Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Business