In a step towards reducing its carbon emissions, Indonesia is all set to take the G7 investment deal. Indonesia aims to reduce its energy carbon emissions to 250 million tonnes and increase its share of renewable energy to 44% by 2030. This is a part of the G7 deal, JETP (Just Energy Transition Partnership).
G7, more importantly, the US and Japan plan to invest $20 billion in Indonesia by 2030. This is part of the deal by G7 where member nations grant loans and investment from members, multilateral banks and private lenders to developing countries in order to promote cleaner energy in the power sector. Indonesia devised a comprehensive plan for the partnership which was made public to further solidify the $20 billion funding.
Out of the $20 billion, $10 billion will come from public funding while the other $10 billion will come from private lenders. This is a big deal as it has the potential to bridge the gap between East and West by pushing renewable energy production in Indonesia. Moreover, G7 mentioned that right now they have their eyes on more than 400 priority projects in developing nations around the world which will require an investment of over $67 billion.
Three other countries have also negotiated for a JETP. G7 members have pledged $15 billion to Vietnam which mostly comes as a loan. South Africa was also able to secure a funding of $8.5 billion. The last country to secure funding is Africa’s Senegal. The country was granted a $2.5 billion funding in an effort to increase its renewable energy to 40% by 2030.