The ETMPTF mobilizes resources for the Energy Transition Mechanism (ETM), a regional, transformative program that uses blended finance to accelerate the retirement of fossil-fueled power plants and replace them with clean power. ETM is one of several initiatives to help Asia and the Pacific mitigate the worst climate change impacts.
- Country : Indonesia
- Project Sites : Indonesia (for Accelerating the Clean Energy Transition in Southeast Asia—Regional Technical Assistance (TA) Project) Cirebon, West Java (for Indonesia: Cirebon Energy Transition Mechanism Pilot Project)
- Support Area : Mitigation
- IKI Funding : EUR 30,000,000 (USD 31,787,370, of which USD 4,433,668 has been allocated to these two projects)
- Duration : Regional TA 12.07.2021–30.06.2025, Cirebon 08.12.2022–08.12.2047
- Implementing Organisation : Asian Development Bank
Policy Priorities :
In Indonesia, the ETMPTF has supported studies on the impacts of pursuing net-zero emissions, including coal power plant retirement, in the Java-Bali and Sumatra power systems. Results of these studies can be considered in the ongoing update of the PT Perusahaan Listrik Negara (PT PLN) Electricity Supply Business Plan (RUPTL) 2021–2030. Overall, these ETMPTF projects can become a knowledge resource for policy development and implementation in Indonesia based on lessons learned from the early retirement of Cirebon 1 and studies related to carbon crediting, just transition, and environmental and social safeguards. These areas align with the Government of Germany’s aim of supporting a just energy transition in Indonesia.
Policy Targets :
Although the two current ETMPTF projects were not designed to provide specific policy development interventions, the projects are aligned with, and have been supportive of, the Indonesian government’s abovementioned (policy priorities) policies.
As mentioned above (Policy Priorities), the ETMPTF projects have implemented the following activities to support the Government of Indonesia: (i) financing for the just energy transition of Cirebon 1 in West Java, along with asset-level environmental and social due diligence, labor audit, and just transition assessment; (ii) analytical and institutional support to the government for just transition and safeguards, including strategic environmental and social assessment; (iii) grid impact studies; (iv) advisory on carbon market mechanisms to generate carbon credits from early retirement transactions; and (v) stakeholder engagement and communications.
Website & Social Media
Relevant Links: https://www.international-climate-initiative.com/PROJECT1855-1