A group of rich countries, led by the G7, promised private and public funding to accelerate the decarbonation of Indonesia, the first exporter and the third coal consumer in the world.
by Audrey Garric (Charm El-Cheikh (Egypt), Special Envoy)
It is a mechanism presented as one of the solutions both in the climate crisis and the inequalities between south and northern. The idea of ”partnerships for a fair energy transition” (JEP) lies in the fact that developed countries, historically responsible for warming, help financially those in development, which have contributed less, to get out of fossil energies. Tuesday, November 15, on the sidelines of the Summit of the Great Economies of the G20 on the Indonesian Island of Bali, A group of rich countries is committed to paying Indonesia 20 billion dollars (about 19 billion euros) to reduce its coal dependence and that it arrives ten years earlier than expected to carbon neutrality in its electricity sector, in 2050 instead of 2060.
A record sum, after the first partnership of this kind concluded last year with South Africa. The first African economy, very dependent on coal, had been promised $ 8.5 billion from France, the United Kingdom, Germany, the United States and the European Union in order to finance its energy transition. Discussions are also underway with Vietnam, Senegal, as well as India. These agreements are closely monitored at the World Climate Conference (COP27), which is held at Charm El-Cheikh (Egypt) until November 18.
This new agreement is perceived as an advance for the energy transition, while Indonesia is the first exporter and the third coal consumer in the world, a fuel that constitutes 60 % of its energy mix. The country, the fourth more populated on the planet, is also now the fifth world emitter of greenhouse gas.
Avoid 300 million tonnes of greenhouse gas by 2030
The promised funding, which come from the G7 as well as from Norway, Denmark and the European Union, are half shared between public and private, in the form of aid, guarantees of credits (provided in the event of Failure to pay the borrower) or private investments, and will be paid in the next three to five years. Details on the distribution between loans and donations, and the amount of interest, will be the subject of negotiations over the next six months.
In return, the Indonesian government is committed to the fact that the greenhouse gas emissions in its electricity sector reach their maximum (before knowing a decrease) at 290 million tonnes by 2030, that is, i.e. Seven years earlier than within the framework of previous commitments. And he promised that 34 % of electricity production will come from renewable energies to this deadline, a doubling compared to the current plans. This plan, write the partners, would avoid 300 million tonnes of greenhouse gases by 2030 and 2 billion by 2060.
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