Indonesia, ADB Launch Energy Transition Mechanism for Clean Energy

TheIndonesia.co - The Indonesian government launches cooperation with the Asian Development Bank (ADB) on the energy transition mechanism (ETM) project to accelerate the country’s effort to reach net zero-emission. The partnership will include a feasibility study and implementation design on EMT.

Speaking at the launching during the UN Climate Change Conference, or COP26 in Glasgow, United Kingdom, Minister of Finance Sri Mulyani said this cooperation will help Indonesia in providing affordable clean energy to the citizens.

“ETM is an ambitious program that will enhance energy infrastructures and accelerate clean energy transition towards the net-zero emission through just and affordable principles,” Mulyani said on 3 November 2021.

She added that demand for energy will inevitably keep increasing as the country’s economy continues to grow. However, the government remains committed to continuing its goal to utilize more ‘green energy'.

“Indonesia’s economy will keep growing and so will demand for energy. This demand must be fulfilled efficiently and through lower or even zero carbon emission,” the minister added.

While the commitment is still intact, the Ministry admits that the development of green energy in Indonesia must not overburden the state budget. Therefore, it will combine gradually decreasing the use of coal power plants and advancing the use of alternative energy.

The Indonesian government targets to decrease the country’s carbon emission by 29 to 41 percent by 2030, and it aims to reach zero emission by 2060. While cutting the use of coal plants is one of the efforts, the ETM is deemed a step forward towards achieving the targets. ETM is a blended finance with main goals to progressively put a stop to coal plants and push investments into clean energy. Currently, the ADB has been conducting feasibility analysis for ETM implementation in several steam power plants, or PLTU, in Indonesia.