Playing Backdoor in Emission Reduction Solutions

Fabby Tumiwa dalam Konferensi Pers Climate Action Tracker

Jakarta, December 6, 2023 – The Climate Action Tracker (CAT) has released its latest report on the climate ambition and action of 42 countries, including the European Union. CAT’s assessment shows that there has been no significant change in global temperature reduction efforts since last year.

CAT modeled four temperature increase scenarios based on current policies and actions, 2030 emission reduction targets, net zero emission (NZE) targets and optimistic scenarios. All four scenarios lead to an increase in global temperature of between 1.8℃ and 2.7℃ by 2100.

Bill Hare, CEO of Climate Analytics said that even based on the global stocktake, the world is already off track to limit global warming to below 1.5℃.

“The emissions should be decreasing now and they should be decreasing quickly, but they’re continuing to increase. The central issue for this COP and the global stocktake is to reach a conclusion about the phasing out of fossil fuels. Unless we do that, I doubt whether we’re going to see an improvement in the temperature outcome,” said Bill Hare at the CAT press conference in Dubai (5/12).

Similarly, Claire Stockwell, Senior Climate Policy Analyst, Climate Analytics argues that countries’ emissions reduction targets for 2030 are very weak

“We assess the 2030 targets for countries that have very weak targets. So for countries that we already are projecting now can very easily meet those targets with current policies, including Indonesia,” Claire said.

Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR) revealed that Indonesia’s downgrade to critically insufficient in terms of climate policy and action was due to an increase in emissions of over 21% compared to last year. Fabby explained that this increase was a result of constructing new coal power plants and resuming operations of previously paused power plants due to Covid-19.

“The Indonesia government actually has made a number of policies, for instance, last year the president issued regulations prohibiting additional new coal plants for utilities but allowing captive coal under specific conditions. We believe these regulations will have an impact, though not immediately, but perhaps in the near future,” Fabby said.

Niklas Höhne, an expert at the New Climate Institute, said that this insignificant emission reduction effort occurs because many countries are proposing backdoors to continue the use of fossil energy. He gave examples of several terms that reflect back door solutions, such as unabated fossil energy, shifting the focus to fossil fuel ‘emissions’, and phasing down fossil energy. Meanwhile, according to him, based on the Paris Agreement, countries have agreed to balance emissions and sources, and this can only happen if all fossil energy operations phase out.

“If we now decide on something more vague, like unabated fossil fuels, phasing out of emissions or something, that will be a step backwards,” he added.

He also highlighted technological solutions aiming to extend the life of fossil energy, like green hydrogen for use in gas boilers or producing ammonia using renewable energy and using it in coal-fired power plants. He considers these technological choices to be incorrect, inefficient, and costly.

Media Briefing: Preparing for Indonesia’s Energy Transition & Anticipating Its Implications and Launching The Indonesia Energy Transition Dialogue (IETD) 2023

Playback Recording


Background

Between 2021 and 2022, the Intergovernmental Panel on Climate Change (IPCC) issued reports from three working groups, all of which uniformly conveyed that there is already scientific evidence related to the climate crisis and its impact on the Earth. One of the key findings of the report is that greenhouse gas emissions due to human activities have contributed to an increase in the Earth’s average temperature by 1.1°C since 1850-1900 and have the potential to rise beyond 1.5°C within the next 20 years. Furthermore, the report also outlines mitigation options that can be pursued and the scale of change that needs to occur, especially in this decade, to stay on track for 1.5°C.

Indonesia ratified the Paris Agreement through Law No. 16/2016. This means that Indonesia has legally committed itself to addressing the challenges of climate change by supporting global efforts to limit the increase in the average temperature to 1.5°C below the pre-industrial era average temperature. According to one of the IPCC models, to achieve this temperature limit, greenhouse gas (GHG) emissions must be reduced by 45% by 2030 compared to GHG emission levels in 2010 and reach net zero by 2050.

As a country that has ratified the Paris Agreement, Indonesia has reaffirmed its commitment to contribute to addressing the climate crisis. Indonesia’s own GHG emission reduction target in the Updated Nationally Determined Contributions (UNDC) is 29%, which increases to 31.89% in the Enhanced Nationally Determined Contributions (ENDC), while the target with international support in the UNDC is 41%, increasing to 43.20% in the ENDC.

A study by the Institute for Essential Services Reform (IESR) and the University of Maryland (2022) found that 9.2 GW of coal must be phased out from the state-owned utility (PLN) grid by 2030, and all unabated coal generation must be retired by 2045 at the latest, to put Indonesia on track to achieve the Paris Agreement’s global temperature target of 1.5°C. The study also concluded that coal emissions should begin to decline before the end of the decade.

Several initiatives and measures are in place to support and facilitate the early retirement of Indonesia’s power plants. In addition to the Transition Mechanism (ETM) launched at COP-26, during the G20 Summit, Indonesia and the International Partnership Group (IPG) have also signed the Just Energy Transition Partnership (JETP) agreement. This agreement aims to achieve the power sector’s peak emissions target of 290 million metric tons of CO2 (MtCO2) by 2030, attain a renewable energy mix of 34% by 2030, and make the power sector carbon-neutral by 2050.

In an effort to strengthen Indonesia’s climate action, the Government of Indonesia received a funding commitment of USD 20 billion from the Just Energy Transition Partnership (JETP) program. The formulation of the implementation of the funding is translated into a Comprehensive Investmentand Policy Plan (CIPP), which focuses on investment areas consisting of developing transmission and distribution networks, the early retirement of coal-fired power plants, accelerating the utilization of baseload-type renewable energy, accelerating the utilization of variable-type renewable energy, and building renewable energy supply chains. The government has finalized the CIPP document and will conduct public consultations over the next few months.

The energy transition can reduce Indonesia’s exposure to similar problems in the future. A smooth and successful energy transition requires the support of all parties, including the general public. Therefore, the process of preparing for the energy transition also needs to pay attention to aspects of inclusiveness. Additionally, it is important to consider impact management and anticipate the implications of the energy transition process. This includes considerations such as the fate of CFPP workers whose operational periods are ending prematurely, the creation of new jobs (green jobs), and how Indonesia’s energy transition can support economic growth through the shift from fossil industries to low-carbon industries.

Therefore, to further discuss the readiness of the energy transition in Indonesia and the launch of the 6th Indonesia Energy Transition Dialogue (IETD), we will organize a Media Briefing. This media briefing aims to provide an overview of the process and impact of Indonesia’s energy transition and to convey the implementation plan of the IETD as a forum for fact-based discussions that support the best policy formulation in the energy sector, facilitating more ambitious climate targets.

1 www.ipcc.ch/sr15/chapter/chapter-2/

2 IESR UMD, 2022, Financing Indonesia coal phase-out

Objective

  1. To inform about the JETP program’s Comprehensive Investment and Policy (CIPP) development.
  2. To discuss the socio-economic implications of the energy transition and anticipation measures in Indonesia.
  3. To announce the implementation details of the Indonesia Energy Transition Dialogue 2023 event on September 18-20, 2023.

Presentation Material

ESDM

130923-DEK-IETD-IESR-ESDM

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Faisal Basri

130923-DEK-IETD-IESR-Faisal-Basri

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