G20 Summit Sends Positive Signal for COP27; Countries Announce Major Funding Package for Indonesia’s Energy Transition – EQ Mag

BALI, INDONESIA  : The G20 Leaders’ Summit in Bali, Indonesia, has come to a close with countries issuing an important declaration on climate change as the COP27 negotiations enter their final stretch. G20 countries reaffirmed the goals of the Paris Agreement, the need to address loss and damage, and keep the 1.5 degrees C limit within reach.

In addition, a major announcement at the G20 Summit was a new Just Energy Transition Partnership (JETP) between Indonesia and a group of wealthy countries and private sector actors. The $20 billion package — potentially the single largest climate finance deal in history — will help Indonesia transition off coal and ramp up renewable energy installations, and expand energy access, important steps for the world’s fourth-most populous country and one of its largest greenhouse gas emitters. Under the package, Indonesia made commitments to reach net zero emissions in its power sector by 2050, peak its power sector emissions by 2030 and increase its renewable energy target to 34% of power generation by 2030.

Following is a statement from Ani Dasgupta, President and CEO, World Resources Institute:

“While multilateralism remains under strain, G20 leaders reasserted their commitment to working together on some of the world’s biggest issues. Some feared that tensions between the United States and China and over Russia’s invasion of Ukraine would doom the G20 Summit to failure, yet the reality was quite different. Presidents Biden and Xi mended fences, the world’s largest economies stood steadfast in their support for limiting global warming, and Indonesia secured what could become the largest deal in world history to pivot away from burning coal.

“The positive signals from the G20 summit should put wind in the sails of the climate talks in Egypt, which are entering their final days. The world’s major economies reaffirmed the need to address loss and damage. Now it’s critical that by COP27’s end, countries should agree on a clear process for creating a funding stream to help vulnerable countries recover from devastating losses and damages.

“We’re also pleased to see these countries agree on the importance of keeping the 1.5 C degrees limit within reach, the need to ramp up climate finance for vulnerable countries, and reaffirmation of the Paris Agreement’s goals. These goals may seem technical on paper but achieving them is the difference between a more stable future versus widespread devastation for billions of people.

“The new funding package to help Indonesia switch off coal is historic, though what amount of this finance ends up being grants versus loans is important. It’s critical that this funding package is indeed ‘just’, providing support to workers and communities that have depended on the coal industry as the clean energy transition accelerates. And shifting Indonesia’s peak power sector emissions date seven years earlier to 2030 will avoid millions of tons of pollution that clogs people’s lungs and destroys our climate.

Our research shows that a low-carbon development path for Indonesia can not only significantly cut greenhouse gas emissions, but grow the country’s economy by $5.4 trillion, create 15 million new jobs, and halve extreme poverty.”

Following is a statement from Nirarta ‘Koni’ Samadhi, Country Director for Indonesia, World Resources Institute:

“As the fourth most populous country and one of the world’s largest GHG emitters, Indonesia has an important role to play in tackling climate change. The Just Energy Transition Partnership announcement demonstrates Indonesia’s commitment to increasing its climate ambition and signals a new funding format with partners from around the world.

This funding package will drastically accelerate the sustainable growth path that Indonesia set out on several years ago, ensuring the country reaches net-zero emissions years faster than previously planned. With the right guardrails, the package can deliver major economic and health benefits for people across the country. Indonesia’s businesses will play a big role in achieving these accelerated emissions targets. While some businesses have already stepped up their clean energy commitments, it’s critical that this JETP ensures they can more easily access renewable energy.”

Source: wri