15th August 2023
14 August 2023 - ClientEarth, together with the Belt and Road Initiative International Green Development Coalition (BRIGC) and the Institute for Essential Services Reform (IESR) of Indonesia co-hosted a Seminar on the Green and Low-carbon Transition Cooperation of China and Indonesia.
Officials and experts from the Foreign Environmental Cooperation Center (FECO) of the Ministry of Ecology and Environment of China, China Renewable Energy Engineering Institute (CREEI), Chinese Renewable Energy Industries Association (CREIA), China Development Bank etc, discussed the opportunities and challenges for China-Indonesia cooperation on green and low carbon transition. The seminar also gathered expert comments for a draft report “Critical Role of China on Accelerating Indonesia’s Energy Transition”, co-authored by ClientEarth, IESR and BRIGC as part of the green BRI collaboration project in 2023.
As presented by the various experts, the potential of China accelerating renewable energy (RE) investments in developing countries is enormous. By the end of 2022, China’s total installed RE capacity exceeded its coal power for the first time and has now exceeded 1.3 billion kilowatts. China has provided more than 50% of wind power equipment and 80% of photovoltaic (PV) modules to the world, effectively reducing the costs of global renewable energy. This year marks the tenth anniversary of its flagship Belt and Road Initiative (BRI), and the 3rd BRI summit will be held, bringing landmark opportunities for deepening mutual cooperation.
On the other hand, the investment gap in Indonesia is significant. A full 89% of its energy currently comes from fossil fuels. With Indonesia’s goal to achieve net zero emissions by 2060 or earlier, and to phase out coal by 2050, at least US$1 trillion investment is needed by 2060, according to the Ministry of Energy and Mineral Resources. However, only $600 million was invested into renewable energy in 2022, while the oil and gas industry received $13.1 billion in investments. This highlights the importance and urgency of energy transition in Indonesia.
To accelerate financing, experts at the seminar also brainstormed innovative mechanisms, such as piloting “small and beautiful” projects and demonstration zones, setting up funds to tap potential projects, exploring debt for nature/climate swaps, cooperating on capital markets exchanges and developing common taxonomies.
Looking ahead, the partnership will see a high-level Indonesia-China Energy Transition Cooperation event later this year, to be held in Jakarta, Indonesia. During this session, the report “Critical Role of China on Accelerating Indonesia’s Energy Transition” will be formally launched. ClientEarth will also be participating in the 3rd BRI summit to be hosted in Beijing.
We are proud to be involved in these exciting initiatives with our esteemed partners. Do check back here for more updates on the latest developments!