The total (investment) needs (to achieve) net zero emissions (NZE) in 2060 reach almost seven times as much as (the investment needs) for NDC (Nationally Determined Contribution) in 2030Jakarta (ANTARA) - Indonesia needs Rp28,233 trillion in investment to achieve the net energy transition target by 2060 or earlier, Finance Ministry policy analyst Joko Tri Haryanto said.
"The total (investment) needs (to achieve) net zero emissions (NZE) in 2060 to reach almost seven times as much as (the investment needs) for NDC (Nationally Determined Contribution) in 2030. In total, (the investment) needs will reach Rp28,233 trillion," he said in a webinar, themed “The Challenge of the Electricity Sector in Energy Transition” in Jakarta on Thursday.
Meanwhile, the total investment needs for NDC, a climate action plan to cut emissions and adapt to climate impacts, are projected to reach Rp3,779 trillion in 2030, he said.
To that end, the government needs funding support through investment from downstream, midstream and upstream sectors to achieve the NZE target in 2060, he noted.
He said Rp1.44 trillion of Rp28,233 trillion will go to the agricultural sector, Rp70.14 trillion to the forestry sector, Rp26,601 trillion to the energy and transportation sector, Rp730.8 trillion to Industrial Process and Product Use (IPPU) and Rp828.83 trillion to waste treatment.
Meanwhile, the investment needs for NDC in 2030, which reach Rp3,779 trillion, comprise Rp4.04 trillion for the agricultural sector, Rp93.28 trillion for the forestry sector, Rp3.500 trillion for the energy and transportation sector, Rp0.92 trillion for IPPU and Rp185.27 trillion for waste treatment.
He said investment from downstream, midstream and upstream sectors is highly needed, in view of limited funding capacity on the part of the government.
The government itself has allocated budget funding for disaster mitigation and climate change adaptation, or climate budget tagging through the state budget (APBN) since 2016, he said.
On the other hand, the government’s effort through climate budget tagging will only be able to meet 34 percent of annual needs, so that it needs another 66 percent of the total fund needs.
“Therefore, the attainment of NDC 2030 and NZE 2060 is not merely the responsibility of the government,” he said.
Indonesia has ratified the Paris Agreement which carries commitments to NDC.
Based on the commitment, Indonesia has set the target of lowering greenhouse gas emissions by 29 percent on its own and 41 percent with international support by 2030.
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Translator: Astrid Faidlatul H, Suharto
Editor: Sri Haryati
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