29 November 2022
On 15 November 2022, Indonesia, the European Union, and the leaders of the International Partners Group (“IPG”), co-led by the United States and Japan, and including Canada, Denmark, France, Germany, Italy, Norway and the UK, announced the launch of a Just Energy Transition Partnership (“JETP”).
The joint statement issued by the parties noted above states that the JETP is established as a long-term partnership to help Indonesia pursue an accelerated and ambitious just energy transition that supports a trajectory that keeps a warming limit of 1.5°C above pre-industrial levels within reach. It also includes an ambitious power sector emissions reduction pathway and strategy based on the expansion of renewable energies and the phase down of on and off-grid coal-fired electricity generation. The JETP also seeks the implementation of concrete actions achieving a just energy transition for workers and communities, particularly those most affected by an energy transition away from coal.
The JETP will be implemented as a partnership between the Government of Indonesia and the IPG to enable the accelerated decarbonisation of Indonesia's power sector to achieve the most ambitious emissions cuts possible. This partnership will also include the Glasgow Financial Alliance for Net Zero (GFANZ) Working Group, which includes a number of financial institutions and it will also leverage the expertise, resources, and operations of the multilateral development banks.