Webinar and Report Launch CREA & IESR: Health Benefits of Just Energy Transition and Coal Phase-out in Indonesia

Background

As a country that has ratified the Paris Agreement through Law 16/2016, Indonesia has taken an active role in contributing to the global climate crisis challenge; to curb the greenhouse gas emission and keep the average global temperature increase below 1.5 ⁰C. As part of the effort, the government of Indonesia has pledged to achieve a net-zero emission target by 2060 or sooner. Furthermore, during the G20 summit in November 2022, Indonesia has also signed a Just Energy Transition partnership (JETP) commitment with the International Partner Group (IPG) countries. As part of the JETP, Indonesia would draft a Comprehensive Investment and Policy Plan (CIPP) with the objective to peak power sector emission by 2030 with absolute value of 290-million-ton CO₂, reach net zero by 2050, and increase renewable electricity mix into 34% by 2030. The IPG countries, in return, promise to mobilize USD 20 billion of initial finance to support the CIPP implementation in Indonesia[1]. The JETP marked an opportunity for Indonesia to increase its climate policy ambition and provide an example of how multilateral partnership could pave the way for energy transition and solve the climate crisis.

The power sector is the low hanging fruit for mitigation action in Indonesia. About 40% of energy sector emissions comes from the power sector, where coal fired-power plant (CFPP) dominates its electricity as well as emissions shares[2]. CFPP development started in the early 2000s, with government support such as the Fast Track Program 1 and 2 (FTP1 dan FTP 2), and the 35,000 MW program. As a result, coal-fired power plant’s capacity is soaring, and as of 2022, about 67% of Indonesia’s electricity comes from the burning of coal. By 2022, Indonesia’s coal-fired power plant’s (CFPP) installed capacity has reached 44.6 GW[3].

Reducing electricity generation from CFPP is an important strategy to start reducing the GHG emissions in the power sector. Cancellation of some of the CFPP in the pipelines could become the lowest cost option to do so with cost ranging between 0.5-0.8 USD/ton CO₂[4]. Moreover, there are also other benefits gained such as reduced air pollution, improved health benefits, and maintain productivity and sustainability of the surrounding environment. Yet, there is not much knowledge and analysis identifying these added benefits.

As JETP aims to accelerate energy transition Indonesia that not only answer the global climate crisis but also “just” in its process, it is therefore important to understand the implications for the JETP implementation in the social and economy aspect. This webinar will discuss the health benefits (and avoidance of air pollution) that could be gained by Indonesia for intervening in the CFPP development. The webinar and the report that will be launched is aimed to enrich discussion in the “just” aspect of Indonesia energy transition.

Objective

The objectives of the webinar are:

1. To present and discuss the potential of air pollution of the CFPPs in Indonesia, its interventions, and its benefits, specifically from the health perspective with related stakeholders.
2. To provide input for the just transition aspects in the JETP process of Indonesia
3. To launch and disseminate the findings of the report titled “Health benefits of Just Energy Transition and coal phase-out in Indonesia.”

[1] https://www.whitehouse.gov/wp-content/uploads/2022/11/Joint-Statement.pdf

[2] IESR (2022). Indonesia Energy Transition Outlook 2023

[3] IESR (2023). Delivering power sector transition in Indonesia

[4] idem