New Just Energy Transition Partnership with Indonesia important signal for COP27 – env minister

The G7, along with Norway and Denmark, have announced a 20 billion U.S. dollar partnership to support Indonesia in moving away from fossil fuels and speeding up its energy transition. The so-called “Just Energy Transition Partnership” (JETP) was presented at the sidelines of the ongoing G20 summit, which is taking place in the country – the world’s fourth-largest producer of coal. To access the funds, Indonesia has committed to capping power sector emissions at 290 million tonnes by 2030 and pulling forward its goal to reach net zero emissions by ten years to 2050, Reuters reported. Half of the funds will be public money mobilised by the partner countries, the other half private finance. U.S. officials said that public finance would include concessional lending and equity, as well as some grants, according to Reuters. The Indonesia JETP, more than a year in the making, "is probably the single largest climate finance transaction or partnership ever," a U.S. official said.

The new partnership is “enormously important” because countries like Indonesia are needed to realistically come on a path towards limiting global warming to 1.5°C, said German development minister Svenja Schulze at a press conference at the UN climate change conference COP27. “It is also a signal here at the COP that we are moving towards implementation, and advancing concrete partnerships,” she added. Indonesia is the second country with whom a JETP is launched. The first was presented with South Africa at last year’s COP26, and during this year’s G7 presidency Germany has been pushing to set up additional deals with Vietnam, Senegal and India.