An analysis using the Just Energy Transition Finance Needs tool // JET-FIN
The Government of Indonesia, in a landmark decision in November 2022, embarked on a collaborative journey with several other governments and private sector banks, aiming to achieve a dual objective of decarbonization and economic development. This initiative, known as Indonesia’s Just Energy Transition Partnership (JETP), places a pivotal emphasis on curtailing emissions from the power sector, initially peaking them and subsequently reducing them, with the indispensable backing of both public and private financial institutions.
Recognizing the complexity and significance of transitioning from fossil fuels to clean energy technologies, as well as comprehending the magnitude and nature of investments requisite for a Paris-aligned just energy transition, a pioneering tool named ‘JET-FIN’ has been meticulously crafted. This open-source Excel model serves as an invaluable resource, designed to provide vital insights and aid in decision-making processes. By facilitating comprehensive analysis of the financial requisites entailed in fostering a just energy transition within Indonesia’s power sector, JET-FIN enables stakeholders to explore diverse pathways and dynamically adjust crucial parameters, thereby assessing their impact on investment requirements over time.
What sets JET-FIN apart is its modular design, rendering it adaptable to varying scenarios and applicable across different national contexts. This flexibility underscores its utility not only within the Indonesian landscape but also in offering valuable insights for similar endeavors worldwide. Indonesia’s Just Energy Transition Partnership (JETP), decarbonization, economic development, power sector emission reductions, JET-FIN, just energy transition, Paris Agreement, open source Excel model, financial needs, just energy transition in the power sector, stakeholders, transition pathways, critical parameters, impact of investment needs, modular design, scenarios, national context, valuable insights, similar efforts around the world
