TEMPO.CO, Nusa Dua – The Asian Development Bank (AfDB) assures that it will help Indonesia reach its zero emissions (NZE) goal in 2060. G20 Summit ago, the AfDB declared its commitment to support energetic transition through the country’s Energy Transition Mechanism (ETM) platform.

“It’s a very good dynamic. After the G20, the journey towards the energy transition has just begun and we have a lot to do. However, we have taken several steps,” Asian Development Bank-Indonesia Country Director Jiro Tominaga said at the Tempo event. Economic Forum, Friday evening November 18, 2022.

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The AfDB and Indonesia have signed a Memorandum of Understanding (MOU) to begin discussing early retirement for coal-fired power plants with an ETM financing program. The cooperation agreement took place on the sidelines of the G20 summit.

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Thanks to ETMs, AfDB will help countries in Asia and the Pacific accelerate the phase-out of coal and other fossil fuel power plants and replace them with new renewable energy sources.

Jiro estimates that the accelerated phase-out of coal-fired power plants over the next 15 years will reduce greenhouse gas emissions by up to 30 million tonnes. This is equivalent to eliminating 800,000 cars on the highway when quoted on the official AfDB website.

“There’s kind of a growing international interest and awareness globally. But, you know, that implementation is still a long way off. This method takes decades to complete,” Jiro said.

Jiro describes the energy transition as a long process. However, he assured that the adopted program will provide benefits to Indonesia by obtaining new renewable energy sources at more affordable prices.

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