In 2022, Indonesia hosted the G-20 in Bali, in which they secured $20 billion in funding to catalyze efforts towards decarbonization. Through the “Green Transition”, Indonesia promised to reduce emissions to a peak of 290 metric tons by the year 2030 (Rachman). Western allies, like the United States, also rallied heavily – not only were they pushing the agenda of decarbonization, but this was also a response to China’s massive infrastructure plans such as the Belt and Road Initiative (BRI). This momentous milestone not only celebrated Indonesia’s commitment to combating climate change but also sent ripples across the global stage, reshaping the conversation on environmental sustainability and international cooperation. But where exactly is the money?

 

It was an ambitious goal from the start for Indonesia. Much of the $20 billion was to come from an array of developed nations – the United States, Japan, and the European Union. But even then, Indonesia’s promise of peaking their power sector’s emission at 290 metric tons isn’t a plausible goal in such a small time frame (Rachman). Especially as a developing country that wants to prioritize economic growth, shrinking emissions rapidly is detrimental.

 

Indonesia’s motives seem to be extremely contradictory. They want to decrease emissions rapidly, but at the same time do not want to jeopardize economic growth as they are reluctant to enforce certain actions. However, the Green Transition opens other avenues of economic growth for Indonesia, such as using resources in nickel reserves to “build an electric vehicle battery industry…” which has been gaining momentum in recent years among government priorities (Rahcman).

 

My Take: 

 

The “Green Transition” in Indonesia represents an admirable vision for a more sustainable future, but its ambitious emission reduction targets raise valid concerns about feasibility. While Indonesia secured substantial funding by pledging significant emissions cuts within a short timeframe, there is a pressing need for concrete initiatives and proactive measures to bridge the gap between aspiration and reality. 

 

There also shouldn’t be an economic burden on developing countries and economies as this initiative goes into effect. Most of the world’s carbon budget was spent by developed countries such as the United States, the European Union, China, and Japan, and therefore these nations should pledge to fully fund such initiatives. 

 

At the end of the day, Indonesia finds itself at a crossroads, striving to strike a delicate balance between reducing emissions and fostering sustainable economic development.

 

Source(s):

Rachman, Joseph. “Indonesia Asks Where the Money Is for Green Transition.” Foreign Policy, 26 Sept. 2023, foreignpolicy.com/2023/09/26/indonesia-green-transition-investment-jetp-coal-united-states/#cookie_message_anchor.