
Breadcrumbs
JETP: a reflection of Indonesia’s commitment to transform its power sector
More specifics are needed for Indonesia to speed up coal retirement, make space for renewables and align with 1.5C.
Available in: Indonesia
The IEA’s Announced Pledge Scenario provides sufficient information to understand the JETP emissions cap requirement for Indonesia’s power sector. However, this scenario is in line with net zero emissions in the power sector by 2050, which is not 1.5C compliant.
The government should consider three recommendations for ongoing JETP discussions to mitigate worsening impacts of the climate crisis by stringent emissions measures and offer more advanced pathways for Indonesia’s energy transition.
First, JETP emissions cap means no new coal other than those under construction. If any plants currently in development – but not under construction – also enter operation by 2030, this will add 7 GW of coal fleet, which equals to around 38 Mt CO2. To meet the emissions cap, this will need to be compensated by retiring more existing plants (beyond the 5 GW) or lowering average running hours of the operational coal fleet, or both. Furthermore, rapid deployment of renewable energy is needed to substitute coal power generation in the system.
Second, JETP should clearly define the power sector emissions cap. As part of coal phasedown, addressing coal power in the energy transition is not limited to the power sector. Gaps in dealing with captive coal power should also be considered an additional threat to Indonesia. The total emissions from existing and under construction captive coal could reach almost 50 Mt CO2 in 2030, 17% of the power sector emissions cap.
JETP does limit the power sector emissions and stated the restriction of captive coal power plants. However, this deal did not impose any captive coal emissions requirements. Therefore, an additional requirement to reduce captive coal emissions should be in place, as part of the deal.
Lastly, leveraging financial support is the key to accelerating energy transition. As mentioned by the Minister of Finance at COP 26, Indonesia could put forward the target to fully phase out coal-fired power plants by 2040, aligned with 1.5C, if sufficient financial support from international communities were available. With JETP now on the table, the country should put its climate-aligned commitment into measurable actions, showing that Indonesia’s energy transition could move faster and align with the global climate target of 1.5C.
Supporting Material
Acknowledgements
Sidrap Wind Farm in Sidenreng Rappang, South Sulawesi, Indonesia
Credit: Yermia Riezky Santiago / Alamy Stock Photo
Indonesia’s JETP requires the country to cap its power sector emissions at 290 million tonnes in 2030, but more specific requirements are needed to speed up coal retirement and make space for renewables.
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