Indonesia is a pivotal region in global efforts to curb climate change. In addition to being considered significantly more vulnerable to the impacts of climate change than other regions worldwide, it is also expected to play a key role in keeping global warming within 1.5°C as set under the Paris Agreement.
With the region’s share of global emissions increasing from 35% in 2010 to 58% in 20202, several countries, including Indonesia, have recently renewed their Nationally Determined Contributions (NDCs) to reflect more ambitious climate targets. Meeting the 1.5°C target, however, will require a vast amount
of climate finance as well as more strategic investment planning. Looking at commitments made by the 38 developing member countries of the Asian Development Bank (ADB), up to $16,999.3 billion will have to be invested between now and 2030 to meet the region’s NDC targets. Recognizing the urgency for robust investment growth and more strategic allocation of climate finance, this article looks at the latest developments and challenges facing Indonesia’s clean energy transition in comparison with other APAC countries, as well as insights on how we can leverage more climate finance opportunities to accelerate coal phase-out and the growth of renewable energy investment.

Reviewer IESR:

• Wira A. Swadana, Manajer Program Ekonomi Hijau, IESR
• Arief Rosadi, Koordinator Diplomasi Iklim, IESR