Indonesia has announced a landmark plan to phase out all coal-fired and fossil fuel power plants by 2040 as part of its commitment to achieving net-zero emissions by 2060. The initiative is backed by a $20 billion deal under the Just Energy Transition Partnership (JETP), funded by international donors, to accelerate the transition to renewable energy. This plan includes retiring existing coal plants, ceasing new coal investments, and significantly scaling up solar, wind, and geothermal energy projects. Currently, coal accounts for over 60% of Indonesia’s electricity generation, making this transition both challenging and critical.
The shift represents a significant step for Indonesia, the world’s largest exporter of thermal coal and one of the top 10 greenhouse gas emitters globally. Experts highlight that success will depend on effective policy implementation, investment in renewable infrastructure, and managing the socio-economic impacts on coal-dependent regions. If successful, Indonesia’s move could serve as a model for other developing nations balancing economic growth with climate goals. More