That figure makes the electricity sector the second-biggest carbon emission reduction contributor after forestryJakarta (ANTARA) - Indonesia needed around US$243 billion to provide electricity from greener new and renewable energy sources, Minister of Finance Sri Mulyani Indrawati said during a webinar on Wednesday.
This US$243-billion budget is required to reach Indonesia's Nationally Determined Contribution (NDC) target to reduce carbon emissions to 29 percent through its own efforts and 41 percent with international aid in 2030.
To reach the 29-percent NDC target, the electricity sector needs to reduce carbon emissions to 314 million tons of carbon dioxide equivalent.
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"That figure makes the electricity sector the second-biggest carbon emission reduction contributor after forestry," Indrawati noted during the Sustainable Finance: Instruments and Management in Achieving Sustainable Development in Indonesia webinar.
In order to reach the 41-percent NDC target, the electricity sector needs to reduce carbon emissions by up to 446 million tons of carbon dioxide equivalent by 2030.
"The funding to reduce carbon emissions does not only come from the government's money. The government will play a role, but the role of the private sector and international financing is also important," she remarked.
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Hence, the government is also still preparing the carbon tax imposition guideline to provide incentives to businessmen, who manage to reduce carbon emissions.
The government is also still discussing the matter involving the fairest carbon price.
"Unfortunately, the global carbon market does not have a universal carbon price," the minister remarked.
"This is a serious debate within the G20 member countries' financial ministers' meeting on fair carbon price that reflects different general responsibility," she stated.
Earlier, during the VII Indonesian Forestry Congress here on June 28, Indrawati noted that Rp77.82 trillion is necessary to reach the NDC target through the forestry sector.
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Translator: Sanya Dinda S, Fadhli Ruhman
Editor: Fardah Assegaf
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