Energy and Mineral Resources (ESDM) Minister Arifin Tasrif affirmed that the move is expected to contribute to achieving the net-zero emission target by 2060 or sooner in line with the Energy Transitions Working Group (ETWG) agenda of Indonesia's G20 Presidency.
"In the next few years, coal will become less popular as compared to NRE in the energy transition process," Tasrif remarked at the kick-off of the meeting of the High Level Advisory Group (HLAG) for transition from coal to the net zero emission goal, as quoted here, Wednesday.
The ministry is readying four strategies to reduce carbon emissions: development of the coal downstream industry, the use of clean coal technology in power plants, carbon capture technology (CCS/CCUS), and biomass substitution.
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Tasrif remarked that implementation of the strategy would take into account the multiple effects of the energy transition process.
"On one hand, it will close several job opportunities, while on the other hand, it will open up various job creation opportunities," he stated.
The minister co-chaired the HLAG meeting along with Spain's Deputy Prime Minister and Minister of Ecological and Demographic Transition Teresa Ribera.
One important agenda discussed at the meeting was the preparation of a special report on practical policies to reduce carbon emissions in the coal sector.
The special report will comprehensively analyze the impact of the net-zero emission target on the entire coal sector chain.
"The report was prepared at the right moment when the world energy prices are soaring and emphasize the importance of energy security and affordability," the minister affirmed.
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The HLAG meeting was attended by representatives of the International Energy Agency (IEA) member countries, representatives of companies in the energy sector, as well as funding management organizations, such as the Asian Development Bank (ADB) and the Climate Investment Fund (CIF).
Some issues that emerged during the discussion were the challenges in balancing the coal phase out strategy and NRE development, different capacities and capabilities of each country in the energy transition process, and funding support and attractive funding mechanisms for the success of each country's coal phase out strategy.
In addition, an issue pertained to the involvement of local communities in the energy transition process to ensure effective and appropriate implementation and the urgency of strong regulatory support in the energy transition process, especially in developing countries.
The HLAG is scheduled to hold another meeting in July to discuss the concept of the report. HLAG Coal in the Global Net Zero Transition is part of the agenda to welcome the 2nd Energy Transitions Working Group on June 23-24, 2022.
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