Indonesia needs $8b additional investment annually by 2030 to reach net-zero goals
The country aims to achieve net-zero emissions by 2060.
International support and cooperations are crucial in achieving Indonesia’s climate goals as it would need additional $8b investments annually until 2030 to reach its net-zero target by 2060, a pathway that is more capital intensive, according to the International Energy Agency (IEA).
In a report, the IEA said near-term actions for the country’s net-zero goal are anchored on current commercially available and cost-effective energy.
Investment in renewables generation and grids would be around $25b, higher than the around $20b usual annual investment Indonesia allocates for its energy sector.
“By 2050, around one‐quarter of the reductions need to be achieved through technologies that are currently not commercially available in Indonesia, including hydrogen and hydrogen‐based fuels, nuclear, and carbon capture, utilisation and storage,” according to the report.
To lower the costs of these technologies, innovation globally. The deployment of these in Indonesia would also need “coordinated, cross-sectoral, and long-term planning across supply, infrastructure and demand.”
“International co‐operation, technology transfer and financial support will be essential,” it said.