All subjects
Markets & Finance

Indonesia and IRENA agree partnership to decarbonize Southeast Asia’s largest economy 

Indonesia’s Ministry of Energy and Mineral Resources, and the International Renewable Energy Agency (IRENA) have signed a partnership that will see the two work closely to identify and implement decarbonization pathways aligned with a 1.5°C future. Indonesia took over as G20 President for the first time in history at the recently concluded Rome Summit, where the world’s largest economies agreed to stop overseas coal funding by the end of this year and acknowledged the role of carbon pricing.

The agreement was signed by Indonesia’s Energy Minister Arifin Tasrif (right) and IRENA Director-General Francesco La Camera in the margins of COP26 in Glasgow, Scotland as countries double down on climate action largely through measures to decarbonize the energy system. Indonesia holds G20 Presidency in 2022 (photo courtesy IRENA).

IRENA and Indonesia will work closely on a new ambitious roadmap that aligns with the Paris Agreement’s aims of a net-zero global economy by 2050. According to IRENA’s World Energy Transitions Outlook report released earlier this year, the bulk of emission reductions are necessary this decade and most can be achieved through a blend of existing technologies.

Indonesia is the largest energy consumer in the Association of Southeast Asian Nations (ASEAN), accounting for nearly 40 percent of ASEAN’s total energy use.

With significant solar, geothermal, wind, and hydropower resource potential as well as a strong bioenergy industry, Indonesia is well placed to thrive in a low-carbon energy system.

The country aims to achieve a 23 percent share of renewables in total energy by 2025 and plans for no new coal plants after 2030 unless those have been contracted or under construction.

Indonesia has committed to reducing greenhouse gas emissions 29 percent by 2030 and has set a more ambitious target of net-zero emission by 2060 or sooner with international support. However, there is a lot to be done domestically in terms of policy, technology, and financial flows. We need support from other countries and international organizations with expertise like IRENA. We look forward to working closely with IRENA to prepare Indonesia’s energy transition, said Arifin Tasrif, Minister of Energy and Mineral Resources of Republic of Indonesia.

Under the agreement, IRENA will prepare a comprehensive energy transition roadmap identifying key policy actions, technology solutions, and industrial development programs to enable the realisation of medium- and long-term national renewable energy goals and decarbonization aim in Indonesia. Joint work will also include an assessment of the socioeconomic benefits of energy transition with an emphasis on the establishment of new value chains, job creation, and improved livelihoods.

IRENA will also support access to climate finance and investments in renewable energy through discussion and dialogue on de-risking investments, development of project pipelines, support for project preparation, and facilitation of access to finance, including via the Coalition for Sustainable Energy Access and the Climate Investment Platform initiative.

The world’s major global economies have an essential role to play in realizing global net-zero ambitions and many are building plans around the use of existing renewable energy technologies. Yet, there is no doubt this transition is hard, and it presents policymakers with complex choices that will shape both immediate and longer-term outcomes for people. Indonesia is a key player in achieving 1.5°C and we look forward to working closely to identify a national roadmap that delivers growth and climate safety, said Francesco La Camera, Director-General of IRENA.

Most read on Bioenergy International

Get the latest news about Bioenergy

Subscribe for free to our newsletter
Sending request
I accept that Bioenergy International stores and handles my information.
Read more about our integritypolicy here