JETP Deal Ahead: Indonesia Calls for Fair Climate Financing
Summary
- Indonesia will possibly unveil its comprehensive JETP plan in October. The release will mark a crucial step as the document will be open to public evaluation.
- Indonesia's call for fair climate financing: developed nations should share the responsibility and financing for Indonesia's climate transition, considering their historical contributions to climate change, putting emerging economies at an unfair disadvantage.
- Four programs for the first phase of JETP Indonesia, two of which need substantial amounts of grants or soft loans.
- Indonesia cannot aggressively invest in renewables if electricity oversupply problems have not been overcome. Grid development and coal-fired power plant early retirement become a priority. US$2.5 billion has been set for loan-based early retirement, but the grant is still highly expected.
- Indonesia’s energy transition plan is surrounded by uncertainties.