Scrutinizing Climate Commitments After COP 28

Jakarta, December 20, 2023 – The 28th Conference of the Parties to the UN Framework Convention on Climate Change in Dubai, United Arab Emirates (UAE) concluded on Wednesday (13/12/2023) afternoon, with several agreements, including a call to move away from the use of fossil fuels and a commitment to triple global renewable energy capacity. The summit also raised USD 85 billion in funding and secured 11 pledges and declarations supporting climate action.

Sicha Alifa Makahekum, Green Economy Program Staff, Institute for Essential Services Reform (IESR), assessed that firm funding commitments should accompany the various agreements. She believes reaching these targets may only be possible with adequate financial support. The USD 85 billion funding from COP 28 can be a significant first step. However, there needs to be further commitment from the government and the private sector to ensure that this figure is not just a nominal figure but channeled to support climate action.

“Along with the agreement, Indonesia aims to achieve a 44% renewable energy mix by 2030 within the Just Energy Transition Partnership (JETP). The Indonesian government needs to focus on pursuing the JETP target by conducting policy reforms and increasing the commitment of policymakers towards achieving the target,” said Sicha at IESR’s X Space with the topic “After COP28, What’s Next?” on Wednesday (20/12).

Arief Rosadi, Climate Diplomacy Project Coordinator at IESR, mentioned that for the first time, COP 28 discussed the results of the Global Stocktake. Based on the assessment, Indonesia could not achieve the targets in the 2015 Paris Agreement and needs to catch up. 

 

“Indonesia needs to strengthen its commitment through a second NDC that will be more ambitious and will be more aligned with efforts to keep the increase in the average temperature of the earth’s surface no more than 1.5°C. I hope that the latest NDC will reflect the pursuit of the global renewable energy capacity target by three times, increase energy efficiency, and be able to accommodate the concept of just transition clearly,” said Arief Rosadi.

 

Arief emphasized that the second NDC also needs to reflect other issues related to climate change at the local level. In terms of gender and social inclusion, detailed indicators should be measured, and a roadmap aligned with climate policies and strategies must be created. Additionally, concerning the energy sector, Arief emphasized the need for intense communication at the national government level and harmonization of existing policies with the latest climate policy documents.

“Over the past five years, Indonesia has made significant progress in updating its climate policies. However, the main challenge lies in the time-consuming harmonization process among government sectors. All sectors related to climate change are required to work towards achieving the NDC target,” Arief said. 

Ahead of the 2024 elections, Arief and Sicha hope that the elected presidential and legislative candidates can prioritize dealing with climate change by intensifying the issue of climate change and energy transition. 

“The issue of climate change is becoming more polarized due to the “echo chamber” effect on social media. This means that people are only exposed to one point of view, which often denies the existence of climate change, and they are immune to scientific explanations that prove otherwise. Climate change discussions are often limited to certain circles, which does not help create broader awareness. We must educate ordinary people on the urgent need for climate change action and energy transition. We should also focus on bilateral approaches to decarbonization rather than just being active in international forums,” they said.

Spurring the Electric Vehicle Battery Industry Sustainability

Farid Wijaya, Analis Senior Bahan dan Energi Terbarukan, Institute for Essential Services Reform (IESR)

Jakarta, December 19, 2023 – In recent years, energy transition has become a significant focus in various countries, including Indonesia. President Joko Widodo’s (Jokowi) has been promoting the shift from conventional energy sources to renewable energy. One of the strategic steps emphasized is the development of electric vehicles. This support is realized through various incentives, including tax breaks, to accelerate the growth of the electric vehicle industry and market expansion.

Farid Wijaya, Senior Analyst of Renewable Energy and Materials at the Institute for Essential Services Reform (IESR), explained that the battery is a crucial component in electric vehicles that enables high performance and efficiency. For this reason, nickel plays a critical role in producing electric vehicle batteries. According to the International Energy Agency (IEA), the shift towards sustainable energy will increase the demand for nickel in the global market, particularly for environmentally friendly vehicles that use electric batteries. By 2040, electric vehicles will account for 58 percent of global vehicles.

“Unfortunately, increased demand for nickel can result in greater reliance on natural resources. Nickel mining and refining processes can cause deforestation, water pollution, and ecosystem damage. Therefore, we must manage it responsibly and ensure it meets environmental impact analysis (AMDAL) and environmental standards. Additionally, we must also consider social justice aspects when managing nickel mining,” said Farid Wijaya at the Forum Group Discussion (FGD) with the title “Electric Vehicle Battery Supply Chain Electricity: Working Together to Build a Sustainable Supply Chain” organized by Traction Energy Asia on Tuesday (19/12). 

Farid mentioned that the nickel mining and refining industry has many issues related to human rights violations and environmental damage. According to IESR’s analysis, several things need to be considered to optimize nickel downstream through environmentally friendly industrialization. Firstly, the nickel mining and refining governance licensing process needs to be reviewed. License revocation and fines should be applied in cases of administrative, environmental, and social injustice issues.

“Secondly, creating a road map for each industry to decarbonize. Third, the development and implementation of Green Industry Standards (SIH) for nickel mining and refining,” said Farid Wijaya. 

Furthermore, Farid emphasized the improvements needed to optimize nickel downstream through environmentally friendly industrialization, such as using environmentally friendly clean technology, energy conservation, compliance with environmental standards, and analysis of AMDAL. There is also worker security and safety and stakeholder consultation. 

On the other hand, Farid explained that the world would be flooded with large lithium-ion batteries that have reached the end of their life and need to be disposed of as the number of electric vehicles on the road increases globally. Recycling is, therefore, essential to recover most of the battery’s active material. The International Energy Agency (IEA) estimates that by 2040, 10% of demand can be met by recycling used batteries.

“If used lithium-ion batteries (LIBs) are disposed of as such and stockpiled in large quantities, it can cause infiltration of toxic heavy metals into underground water, resulting in environmental pollution. Similarly, incinerating used LIBs as solid waste can generate various toxic gases, such as hydrogen fluoride (HF), from the electrolytes in LIBs, which can pollute the atmosphere. Therefore, proper waste treatment of these used batteries is crucial. Recycling is also essential to reduce dependence on imports,” said Farid Wijaya.