Biden announces $20B to move Indonesia away from coal

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The White House on Tuesday announced a $20 billion plan that it, along with international partners, will launch with Indonesia to transition its reliance off of coal-fired electricity and pursue a green economy.  

Under the "Just Energy Transition Partnership," the U.S. and Japan will lead a coalition of 10 international partners to help Indonesia’s energy sector through a "mix of grants, concessional loans, market-rate loans, guarantees, and private investments."

In a statement Tuesday from the G-20 summit in Bali, the White House said G7 nations and "like-minded" allies like Denmark and Norway would "pursue an accelerated and ambitious" energy transition plan for Indonesia that "supports a trajectory that keeps within reach a warming limit of 1.5 degrees C above pre-industrial levels."

Sitting next to Indonesian President Joao Widodo, President Biden smiles during the Partnership for Global Infrastructure and Investment meeting at the G20 summit, Tuesday, Nov. 15, 2022, in Nusa Dua, Bali, Indonesia. (AP Photo/Alex Brandon)

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The plan will phase out coal-fired electricity and implement sustainable energy alternatives to expand Indonesia’s renewable energy sector.

China remains the world’s greatest emitter of greenhouse gases, while the U.S., Japan and some European nations like Germany take up the second, fifth and sixth spots respectively. 

Indonesia is also one of the world’s top emitters coming in as 10th in the world for nations that produce the most emissions, according to data from 2019.

"Indonesia is committed to using our energy transition to achieve a green economy and drive sustainable development," Indonesian President Joko Widodo said. "This partnership will generate valuable lessons for the global community and can be replicated in other countries to help meet our shared climate goals through concrete collaborative actions."

Earlier this year, the Indonesia government pledged to cut its own emission levels by nearly 32% or by 43% with the aid of international partners by 2030.

President Biden, right, gestures with India's Prime Minister Narendra Modi before the Partnership for Global Infrastructure and Investment meeting at the G20 summit, Tuesday, Nov. 15, 2022, in Nusa Dua, Bali, Indonesia.  (AP Photo/Alex Brandon)

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The targeted cuts are more ambitious than projections it previously committed to under the Paris Agreement, which aimed to cut emissions by 29% or 41% with international help, according to Reuters. 

The latest plan to assist Indonesia would not only transition the nation towards cleaner energy, but comes with a commitment make the transition alongside its workers and communities.

The agreement will also cap the nation’s power emission at 290 megatons of CO2 by 2030, down from the baseline 357 megatons of CO2.

President Biden, center, speaks during the Commission on the Partnership for Global and Infrastructure Investment meeting at the G20 summit, Tuesday, Nov. 15, 2022, in Nusa Dua, Bali, Indonesia. (AP Photo/Alex Brandon)

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The country will also establish a goal of reaching net-zero emissions by 2050 and will commit to ensuring that at least 34% of its power sector comprises renewable energy systems by the end of the decade. 

President Biden championed the plan and said its agreements "demonstrate how countries can dramatically cut emissions and increase renewable energy while advancing a commitment to creating quality jobs and protecting livelihoods and communities."