US and 8 Other Countries to Provide 26 Trillion Won Support for Indonesia's Coal Phase-Out

President Yoon Suk-yeol is attending the first session (Food, Energy, Security) of the G20 Summit held at the Kempinski Hotel in Bali, Indonesia, on the 15th (local time). [Image source=Yonhap News]

[Asia Economy Reporter Kim Daehyun] Nine countries, including the United States, have agreed to raise a total of $20 billion (approximately 26 trillion won) to support Indonesia's "coal phase-out."

On the 15th (local time), the White House announced in a statement that at the G20 summit, Indonesia, the United States, Japan, Canada, and six European countries signed the "Just Energy Transition Partnership" (JEPT) with this content.

Specifically, $10 billion will be supported from the public sector and $10 billion from the private sector over the next 3 to 5 years. According to the agreement, Indonesia promised to achieve carbon neutrality (net zero emissions) by 2050, which is 10 years earlier than the original target date. It also agreed to nearly double its renewable energy generation capacity by 2030.

Indonesian President Joko Widodo stated in a press release, "Indonesia has been committed to energy transition to practice a green economy and promote sustainable development," and "We appreciate the cooperation and support of international partners." He also emphasized that this agreement could serve as a model for other countries to contribute to international climate goals.

U.S. President Joe Biden evaluated the agreement by saying, "It has shown a way to drastically reduce carbon emissions and increase renewable energy while creating quality jobs and protecting livelihoods and communities."

The statement also revealed plans to support the Pacific Digital Project, invest in sustainable mining of nickel and cobalt in Brazil, and power a solar project in Honduras.