Biden, Widodo to announce $20bn deal to help Indonesia move away from coal

US and Indonesia are going to announce a climate finance deal that will provide USD 20 billion to help Indonesia make a switch from coal power. The deal, which is brokered between the US, Japan and Indonesia will be outlined on Tuesday (November 15) on the sidelines of G20 summit in Bali, Indonesia. The deal has culminated after years of talks. It is being touted as the single largest climate finance transaction ever.

According to the deal, Indonesia will commit to a cap of carbon dioxide release from it electricity sector at 290 megatons by 2030. Indonesia will also commit to reaching net-zero emission in the power sector by 2050. By end of this decade, Indonesia will also deploy renewable energy in order that it comprises 34 per cent of all power generation.

“Together, we hope to mobilize more than $20 billion to support Indonesia’s efforts to reduce emissions and expand renewable energy and support workers most affected by the transition away from coal,” said US President Joe Biden at an event with European Commission President Ursula Von Der Leyen and Indonesian President Joko Widodo. He was quoted by Bloomberg.

As Indonesia makes the switch to renewable energy. More than 10 gigawatts of localised power systems in Indonesia have been planned to be redirected to renewables instead of coal.

This effort “can truly transform Indonesia’s power sector from coal to renewables and support significant economic growth,” said US Special Presidential Envoy John Kerry.

“At every step, Indonesia has communicated the importance of building a clean economy that works for the people of Indonesia and attracts investment. Together, we have a shared vision for that goal,” he added.

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