Indonesia to urge G20 to label coal power plant retirement funding as green

illuminem summarizes for you the essential news of the day. Read the full piece here in Reuters or enjoy below

🗞️ Driving the news: Indonesia's Finance Minister, Sri Mulyani Indrawati, has announced a proposal for the G20 to acknowledge funding for the early retirement of coal power plants as a sustainable investment
• A coalition led by the United States and Japan has committed $20 billion to help Indonesia transition to cleaner energy 

🔭 The context: Amidst global efforts to mitigate climate change, banks worldwide have pledged to stop funding coal-related assets, creating concern amongst investors under the Just Energy Transition Partnership (JETP) who worry that financing early retirement of coal plants could be viewed as supporting the coal industry

🌎 Why does it matter for the planet: If the G20 recognizes the retirement of coal power plants as sustainable investment, it could enhance funding for Indonesia's energy transition, supporting the global shift toward cleaner energy sources and combating climate change

⏭️ What's next: Indonesia plans to finalize an investment plan for the JETP by August and aims to phase out coal power plants by 2056 as part of its broader goal to achieve net-zero carbon emissions by 2060

💬 One quote: "We want rules that recognize financing for (energy) transition, not rules that punish it" (Sri Mulyani Indrawati, Minister of Finance of Indonesia)

📈 One stat: Coal makes up more than half of Indonesia's power generation, and the Indonesian state utility Perusahaan Listrik Negara has set a target to phase out coal power plants by 2056

Click for more news covering the latest on Energy Transition