President Joko “Jokowi” Widodo emphasized the colossal funding needed for ASEAN’s shift to green energy during the Asia Zero Emission Community (AZEC) summit in Tokyo.
Financial Challenges and the Need for Sustainable Funding
President Jokowi highlighted the financial challenges, stating that ASEAN requires $29.4 trillion by 2050 for its energy transition. He stressed the importance of upscaling sustainable funding to achieve an energy transition that drives economic growth and benefits the people.
Indonesia’s Initiatives in Decarbonization
Jokowi outlined Indonesia’s efforts in funding decarbonization, including the launch of a carbon exchange with a potential value of Rp 3,000 trillion (approximately $193 billion). This innovative mechanism aims to support the country’s green initiatives.
AZEC’s Role in Transition Finance
The AZEC, a platform comprising Asian countries and focusing on decarbonization, acknowledged the significance of transition finance in its joint statement. Members, including Australia, Japan, and ASEAN nations, pledged to scale up investments through the AZEC to address financing gaps.
Partnerships and MOUs to Advance Energy Transition
The AZEC summit witnessed Indonesia securing energy transition partnerships within the framework. Additionally, Indonesia signed 24 memoranda of understanding (MoU) with Japan, focusing on collaborations related to geothermal and waste-to-energy programs.
Global Concerns and COP28 Statements
Jokowi’s concerns over the vast funding required for a complete transition to renewable energy align with his statements at the recent UN climate summit COP28. He emphasized that developing countries, including Indonesia, cannot fund their energy transition alone, requiring significant investments.
This latest development underlines the growing importance of international collaboration and innovative funding mechanisms to achieve sustainable energy goals.
Source：jakartaglobe.id
